Monday, March 31, 2025

3 Retail Predictions For 2025: The AI Shopping Era Is Now

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2024 was all about value, deals and social commerce , but 2025 will make a pivot and focus more on artificial intelligence (AI)-driven shopping, hyper-personalization and stacking savings.

Here's how these three trends will transform retail this year and potentially help companies better engage consumers and drive growth.

For years, Google has been the go-to destination for consumers looking for product information. However, 58% of global consumers have replaced traditional search engines with GenAI tools like ChatGPT as the primary way they find product or service recommendations, according to a recent report from Capgemini. Seventy-one percent of consumers also want GenAI integrated into the buying experience.

Google seems to be well aware of this shift. The company has made AI enhancements on its platform to help retailers drive more sales . Google is now delivering AI-driven insights to help retailers better understand their product performance and leverage Google search to capitalize on viral shopping trends and has upgraded Gemini, its AI assistant. These improvements not only benefit retailers, but they're also good news for consumers as they streamline product discovery.

More retailers are also exploring building their own AI shopping assistants , which will act as the digital equivalent of a store associate that answers shoppers' product questions and helps them navigate features like virtual try-ons. This piggybacks on a trend we saw during the 2024 holiday shopping season, where AI-powered chatbots helped consumers purchase and return products—boosting online sales in the U.S. by nearly 4% year over year, according to a Salesforce report .

Whether it's recommendation engines, personalized email marketing or geotargeting, the retail industry seemingly has been consumed with hyper-personalization over the last decade.

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