Retail AI Trends 2026: Human-First Innovation at NRF

The retail world emerged from its quick break following CES at this year’s NRF Conference in New York City. This year’s “Retail’s Big Show” conference welcomed executives from leading retail brands, startups, and industry professionals for an agenda filled with keynotes, panels, and showcases. While sessions discussed a range of topics, one stood above the rest: AI.

AI has been a driving force in cultural and business conversations for several years, becoming a dominant presence following OpenAI’s launch of GPT-4 in 2023. As consumer sentiment around  AI continues to evolve, companies have begun exploring innovative ways to align their technological needs with consumer expectations and concerns. Retailers are at the forefront of this shift, and three major themes emerged from this year’s conference: 

AI is here to help, not replace

AI took center stage at NRF, with keynote sessions and a dedicated AI Stage spotlighting the opportunities it poses to retailers. From AI shopping agents to AI-powered enhancements, it’s clear AI is top of mind for all retailers. But it poses the question: how will it be implemented responsibly and effectively?

Creating better retail experiences with AI

According to a Deloitte study, 63% of retailers are expected to adopt AI-driven chatbots by the end of the year to improve the customer experience. At NRF, over 70 exhibitors showcased AI-powered customer service solutions, including Cisco, Salesforce, and Microsoft. Microsoft also joined Ralph Lauren on stage to discuss the latter’s new AI-powered shopping tool, created to provide styling inspiration and shoppable moments for users. Retailers aren’t innovating for AI’s sake; they’re using AI to meaningfully engage with customers and create a more seamless shopping experience. 

A word of caution from Gen Z

The newest power consumer, Gen Z, was another major focus at NRF, with eight sessions dedicated to understanding their preferences and behaviors. Despite being digital natives, Gen Z shoppers aren’t relying on AI; instead, they use it as a tool in their hunt for unique items. For retailers, this means there is still a need for a strong physical store presence and in-store customer experiences that are complemented by AI-assisted features. 

So what do these trends mean for retailers and consumers in 2026? The key is informed implementation. AI should be used to enhance the retail process, not replace the human connection at the heart of what makes the retail experience meaningful.