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AI in Retail: Technology Expected to Influence Over 60% of Digital Sales by 2025

A study released by the National Retail Federation (NRF) predicts that by 2025, over 60% of digital sales will be influenced by artificial intelligence (AI) agents. This means chatbots, virtual assistants, recommendation systems, and predictive algorithms will play a fundamental role in consumer purchasing decisions, redefining the digital retail experience.

These innovations streamline the purchasing process, increasing conversion rates and improving the consumer experience. According to Paulo Camargo, executive director of iTalents—a technology development startup focused on retail—the use of AI in e-commerce is already a reality.

“Personalizing the shopping experience has always been a goal—and also a challenge—in online retail. With advancements in AI, new ways to customize this journey have emerged. Intelligent systems now connect to e-commerce platforms to analyze browsing patterns, purchase history, and preferences, offering highly personalized suggestions through conversational interactions, which boosts conversion rates,” he explains.

Artificial intelligence is not only revolutionizing the end consumer experience (B2C) but is also reshaping the B2B market and marketplaces. Companies operating in this segment already use AI solutions to analyze data, forecast demand, and optimize inventory. Negotiations become faster and more precise, minimizing errors, reducing waste, and optimizing operational efficiency.

“Another crucial aspect of AI in B2B is the automation of repetitive processes, such as contract analysis, customer service, and billing management. Specialized chatbots and virtual assistants are already used to answer technical questions, expedite quotes, and facilitate complex negotiations. This allows professionals to focus on tactical and strategic activities while technology optimizes operational tasks,” points out Paulo.

The balance between digital personalization and humanized service will be a determining factor in maintaining customer loyalty. Additionally, concerns related to data privacy and security remain central in the industry, requiring regulations and best practices in implementing these technologies.

While online sales grow—both in marketplaces and proprietary online stores—physical retail is declining. According to the Stone Retail Index (IVS), digital commerce showed an annual growth of 7.7%, while physical retail saw an annual decline of 2.1%. This trend is already evident in sectors like fashion, electronics, and even supermarkets, where the digital experience is gradually replacing the traditional model.

Despite this scenario, physical retail will not disappear entirely. However, it will need to reinvent itself to keep up with new consumer behavior. Hybrid models, such as omnichannel—where physical stores serve as pickup points, experience centers, or logistics hubs—may be key to brand survival, especially for retail franchise systems that also sell online.

“AI is set to advance even further in digital retail, with shopping assistants and hyper-personalized recommendations elevating the consumer experience. In the beverage sector, for example, preferences, budget, and purpose already influence product and channel choices. The future of retail depends on companies adapting to an increasingly technology- and AI-driven landscape, which enhances personalization and convenience,” concludes iTalents’ director.

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