The fast-paced retail environment is undergoing a significant change. Trade tariffs are the buzzword of 2025, and AI is advancing at hyperspeed.  Retailers must grapple with a host of challenges that impede strategic decision-making. But…agentic AI is changing the narrative. According to a late 2024 NVIDIA survey, "89% of retailers said that they are either actively using AI in their operations or assessing AI projects."

Why? 

Inefficient inventory management often leads to either surplus or deficit, both of which impact profitability and customer satisfaction. Poor decision-making leads to guesswork, and as we all know, bad data is often worse than no data.  Fluctuating market demands that require retailers to be agile and responsive only compounds the issues.  Any retailer aiming for sustained success needs to meet these challenges head on. But exactly how does agentic AI enable retail problem-solving? Let’s don our super vision-enabled glasses and take a look. 

The role of AI in transforming how retailers use data

Retailers don’t need more dashboards. They need better decisions. They need speed in decision-making, but that’s a tall order when many still rely on manual data aggregation via Excel spreadsheets. That’s where agentic AI comes in. Instead of reacting to lagging metrics, teams can act on actual data to steer product allocation, pricing and promotion in real time. Thus, they can reduce the issues associated with guesswork-based decision-making, and they can know that they’re on the right track. 

AI supports strategic retail decisions in five critical areas:

• Forecasting - Perhaps one of the most diverse and opportunistic uses of AI in retail is centered around forecasting. Forecasting is all about data analysis, but no one has time to manage 1 million+ filters and some semblance of a strategy with manual processes. AI can do this instantly.
• Assortment planning - AI analyzes performance signals across regions, channels and customer segments to help buyers choose the right mix of products.
• Pricing and promotions - Algorithms adapt pricing to demand shifts, competitor movements and margin goals. As it all happens automatically and at scale, you can ensure your pricing is aligned with micro- and maro-economic indicators. 
• Store operations - AI identifies low-performing locations, flagging where and how to adjust assortment, product flow or replenishment.
• Customer journey optimization - From digital interactions to in-store behaviors, AI finds where friction exists and resolves it. Since your team members are not as focused on firefighting, they get back the time to think more strategically and create a better retail experience. 

Retailers using an AI-decisioning platform don’t just move faster. They move with purpose and confidence. The why, what, how, why and when of every decision comes into focus. The result? 

Less waste, better margins and a sharper competitive edge. Now, the trick is to realize agentic AI and its capability to make automatic decisions on its own volition and on your behalf. This is where even greater opportunities lie. 

The customer shopping experience and agentic AI

Agentic AI empowers retailers to offer exceptional customer experiences by personalizing interactions and tailoring offerings to individual preferences. But that’s not necessarily speaking to the individual marketing tactics we’ve all come to know with the many uses of GPT. Yes, AI can enable personalized recommendations, dynamic pricing and real-time responsiveness, but let’s think more about the superpower elements. If you have those things in place, you are going to be  more adaptive. Your customers are going to have a more satisfying shopping journey. You are going to create better customer experiences. 

But the real opportunity lies in what agentic AI unlocks for decision-makers. For years, static models and legacy processes have held back forecasting, planning, inventory and pricing. Heck, we’ve seen time and again where the application of technology enables revenue growth. And AI isn’t just another technology.  It never sleeps, doesn’t complain–not yet at least–and is able to scale with you. With AI surfacing real-time insights and simulating outcomes, retail leaders gain space to be creative. They can test new planning scenarios, fine-tune stock thresholds or experiment with seasonal pricing strategies without the traditional risk.

For heads of planning, merchandising and pricing, this means faster pivots with less guesswork. For inventory and supply teams, it means visibility and confidence to adjust before problems emerge. All this is happening at the same time as customer expectations are rising, and loyalty programs are everywhere. You have a unique opportunity to create long-term brand advocates well outside of your brand. All you have to do is focus on building out strategic decisioning with AI, and you’ll see the winds turn in your favor. You’ll see more value and spend from your customers. And you’ll realize your revenue growth goals for your retail locations businesses.

Transform your retail strategy with invent.ai

Strategic retailers have one thing in common; they are never complacent. They are not happy with maintaining the status quo. They want growth, and they want new technology. So are you strategic? We think you should be, and the good news is that you can work easier and be faster than ever before with the power of agentic AI at your fingertips. Speak with a retail AI specialist at invent.ai to get started now.