Retailers say agentic AI is the best way to boost customer sales

Seventy-five percent of retailers say AI agents will be essential for a competitive edge by 2026, according to the sixth edition of the Connected Shoppers report by Salesforce, based on a survey of 8,350 shoppers and 1,700 industry decision-makers. 

Also: AI agents aren’t just assistants: How they’re changing the future of work today

Here is the executive summary of the report:

• Stores’ evolving roles enhancing the shoppers’ journey: While digital channels multiply and social commerce gains momentum, physical stores expand their role as experience hubs and fulfillment centers that bridge digital and physical shopping journeys. Shoppers estimate 41% of their purchase volume will come from physical stores in 2026, down from 45% in 2024. 
• Unified commerce brings opportunities and challenges: Companies are working to connect online and offline experiences to understand shoppers and serve them seamlessly across channels. Retailers are upgrading systems and empowering store associates to improve efficiency and provide more value to shoppers. Eighty-eight percent of retailers say unified commerce will be very important or critical to their business objectives over the next two years.
• AI agents poised to redefine retail: AI agents greatly expand AI’s impact by independently responding to customer inquiries, managing inventory, and more. Seventy-five percent of retailers say AI agents will be essential for a competitive edge by 2026. Retailers view leveraging AI as their number one opportunity.
• Rewards programs put a check on declining shopper loyalty: Brand loyalty can be fleeting, especially among younger shoppers. Companies are responding by reimagining customer service and refining their rewards programs. Eighty-four percent of loyalty program members say programs make them more likely to repurchase.

The survey identified the top five retail industry challenges: industry competition, inflation and high costs, rising customer acquisition costs, changing consumer behavior, and cost of returns. 

Also: Will synthetic data derail generative AI’s momentum or be the breakthrough we need?

The top five retail opportunities: leverage AI, implement unified commerce, increase e-commerce sales, improve customer service, and increase store associate productivity. 

Enhancing the shopper journey

The survey found that physical store purchase volume decreases as shopping spreads across digital channels. The growth of digital commerce isn’t creating a single winner. Instead, online marketplaces, retailer websites, brand websites, and delivery apps are all gaining a modest share as consumer journeys take unique paths. 

Also: As AI agents multiply, IT becomes the new HR department

The top 5 reasons to shop in a physical store: to touch and feel merchandise, to get merchandise immediately, to avoid shipping fees, to take advantage of in-store discounts, and to enjoy the shopping experience. 

Retailers are also meeting shoppers at the edge. The journey continues through purchasing, where 25% of shoppers buy through social media and 16% via messaging apps. Even post-purchase service is evolving, with messaging apps and social media becoming key channels for customer support.

In-store complements digital commerce, with almost one in four shoppers having sought product customization or repairs in-store, while others have explored unique experiences, popup stores, and virtual try-on features, such as magic mirrors. Retailers are transforming stores to deliver elevated retail experiences: 59% now offer in-store services like customization and repairs, while 46% provide dedicated spaces for events and community gatherings.

Unified commerce brings change

The survey found that retailers see AI as their number one opportunity, yet implementing these data-enabled solutions is also their top operational challenge. High operational costs and disconnected systems slow progress on AI and other critical business opportunities. Meanwhile, store associates feel the burden of disconnected technology — only 17% have access to a unified view of customer data as they navigate disconnected systems in their daily work.

The role of store associates is driving AI adoption. Store associates’ roles are transforming as dramatically as the stores they work in. Traditional checkout duties occupy just 28% of associates’ time, while responsibilities, such as store operations, customer service, and fulfillment activities, fill the remainder of their time. 

As duties expand, associates face mounting technological complexity. New associates must master an average of 16 systems they’ll use daily, up from 12 in 2023, and they spend 26 hours on technology training in their first month alone.

Also: Want to win in the age of AI? You can either build it or build your business with it

To overcome disconnected systems, retailers are actively pursuing unified commerce platforms. While almost nine in 10 retailers have unified commerce initiatives underway, only 15% have fully realized their value. Retailers see unified commerce as transformative for their operations. Beyond immediate gains in productivity and efficiency, unified commerce creates a foundation for future innovation. With consolidated data and systems, retailers can take advantage of AI capabilities.

AI agents will redefine retail

The survey found that AI has taken retail by storm, transforming everything from customer experience to supply chain management. As many as 84% of retailers use AI already, and only 2% have no plans for the technology. More innovation is underway as AI becomes increasingly agentic, taking action autonomously without human involvement. 

The survey shows that 85% of retailers agree AI advancements are transforming retail. Most retailers intend to increase their AI investments, with 74% simultaneously boosting their data management investment, reflecting how accessible, integrated data underpins successful AI implementation. 

Also: How AI agents help hackers steal your confidential data – and what to do about it

The top five benefits of AI in retail: increased employee productivity, improved shopper experiences, increased revenues, improved supplier relationships, and improved employee experiences. AI yields clear business results: 89% of retailers expect returns on their investments, with similar shares reporting increased online sales volumes and reduced operational costs.

Trust is key to adopting AI agents in retail. The report found that retail shoppers ranked these factors highest when establishing trust with AI agents: 

1. Data privacy and security protections 
2. Ability to easily turn agents off/on 
3. Require approval before any purchase 
4. Transparency over how data is used 
5. Available human customer service backup

The survey found that AI-assisted shopping is in its early stages, but many shoppers use the technology for product discovery, purchasing, and customer service. Gen Z shoppers are ten times more likely than baby boomers to use AI frequently to discover new products.

We are entering the age of autonomous retail. AI agents build on earlier AI foundations and represent the technology’s latest innovation. Retailers are taking notice: 43% say they are already piloting autonomous AI, with use cases spanning the business. Customer service in retail is on a fast path to autonomous service delivery powered by AI agents. 

Also: Autonomous businesses will be powered by AI agents

The value of AI agents is the ability to deliver value at the speed of need. The survey found that 74% of shoppers abandon a brand after three or fewer bad experiences. Shoppers say the worst retail experience is poor customer service, putting pressure on retailers to enhance support with implications for their bottom lines. Retailers are either autonomous businesses or declining businesses. The survey found that 81% of retailers trust AI to act autonomously with sufficient guardrails. Digital natives are embracing agentic AI —   Gen Z shoppers are 2.7 times as likely as baby boomers to want product recommendations from AI agents (63% vs 23%).

Retailers are doing more than buying new software when building a foundation for AI agents. As many as 86% of retailers with AI say it will restructure their operations. The future of the retail industry is autonomous — a hybrid workforce of humans and AI agents delivering customer value and better experiences. Welcome to the autonomous enterprise, where self-driving retailers can focus on the business currencies that matter most: trust, speed, intelligence, personalization, and scale.  

To learn more about the Connected Shopper report, you can visit here.