The proliferation of AI usage across the retail industry was the focus of the National Retail Federation’s 2026 Big Show in New York City this week.
From partnering with external tech companies that operate popular AI chatbots to building AI agents internally, retailers seemed eager to display how they’re innovating with the technology in 2026.
Insights from company executives exemplified the belief that collaboration is necessary as AI transforms the industry at a rapid pace.
The newly announced partnership between Walmart and Google’s Gemini, for example, showcased how retailers are collaborating with the external chatbot platforms that consumers increasingly turn to for shopping advice.
Meanwhile, REI and Ulta Beauty executives discussed the value of human intelligence from their associates and how that can work in tandem with AI.
A more nuanced conversation about AI was had offstage, however. Is there a price to pay for retailers who bring their commerce onto external platforms?
With ChatGPT, Google Gemini and Microsoft’s Copilot now working with companies to bring commerce directly onto their AI platforms, some wonder if retailers could be disintermediated from the customer journey by not giving shoppers a good reason to leave those platforms.
Additionally, collaboration between external AI platforms and retailers poses the question of who controls all the valuable consumer data surrounding the buying process, from discovery to transaction.
“Unless they're willing to share [that data], then the retailer loses,” Nikki Baird, vice president of strategy and product at retail technology provider Aptos, told Retail Dive. “If they're not sharing everything that happened that led to the discovery, that led to the decision, that led to the delivery, then the retailer loses so much context because it's outside of their realm.”
Still, it’s time to move fast with AI, according to some retail executives.
“I'm a big believer on fail fast, and then go back and figure out why you failed,” Max Magni, Macy’s Inc. chief customer and digital officer, told an audience during the conference this week. “AI moves faster than the organizational readiness, and that's a big problem.”
Here's what 10 retail leaders had to say about AI as they gathered at one of the industry's biggest events:
1.) Ed Stack, Dick’s Sporting Goods Executive Chairman
“I don't think anybody should be afraid of AI. ... I think it's going to have an impact, for sure, but it's also going to create some other opportunities on the other side, and we always try to take a look at the glass half full.”
2.) Mary Beth Laughton, REI CEO
“I'm a believer that AI is going to touch every aspect of our retail journeys and our retail business, and so we can't underestimate it.”
3.) Sundar Pichai, Google and Alphabet CEO
“For years, online shopping has been about keywords, filters, drop-down menus and scrolling through multiple pages until you find what you want. Now you can type in exactly what you're looking for, including really specific details and quirks. An AI can do the hard work, narrowing it down to what you're most interested in buying.”
4.) Prat Vemana, Target Chief Information and Product Officer
“Don't do AI for the sake of doing AI. …. know your business, know your roadmap, and really apply for the right reasons.”
5.) Kecia Steelman, Ulta Beauty CEO
“I think AI partnered with the human interaction and the knowledge base that we have … when you do that together, collectively, it's going to make a really big difference for everyone's business.”
6.) Max Magni, Macy’s Inc. Chief Customer and Digital Officer
“We embrace AI. AI is super important. I love the fact that AI is going to help us listen to our customer better. … AI, to me, is not a strategy, it’s an enabler.”
7.) Billy May, Brooklinen CEO
“I think that organizations or functions that aren't thinking about how to incorporate [AI] are the ones that are going to end up being most affected by it. The only way to predict the future is to be a part of it.”
8.) Josh Krepon, Steve Madden President of U.S. DTC and Global Digital
"I think it makes more sense to move thoughtfully and slow than faster, like the fail fast mentality.”
9.) Emma Grede, co-founder and CEO of Good American, chief product officer and founding partner of Skims
“It's not about taking anything human out of what we do. It's actually leaving ourselves the time to do the stuff that only we can do — only I can obsess over product innovation, and everything else should go somewhere else.”
10.) Bob Eddy, BJ’s CEO
Retail will “keep advancing in AI, not to replace creativity, but to amplify it. When technology accelerates imagination, we get new possibilities for merchandising, design, forecasting, fulfillment and the art of supply that makes this industry so special.”
