Repositioning retail for the AI era

Artificial intelligence is fundamentally reshaping retail, not always in ways immediately apparent to consumers. This transformation lies in behind-the-scenes decision-making, influencing product visibility in search results, optimizing supply chains, accelerating code delivery, and enabling real-time responses to customer behavior. For legacy retailers in a fragmented and competitive landscape, AI is evolving into a core operating philosophy.

Macy's exemplifies this shift with its "AI-first" strategy, as described by senior director Murali Murugan. This approach is not about adding AI as an afterthought, but about redesigning decision processes to enhance business agility and make every customer interaction more relevant. Macy's is embedding intelligence directly into systems for personalization, search, operational planning, and even software development itself, moving past isolated AI initiatives towards integrated solutions.

Early AI efforts at Macy's focused on targeted, high-impact applications like search recommendations, yielding measurable improvements in conversion and customer engagement. These initial successes transformed AI scaling from a technology debate into a strategic business decision. This momentum now extends to conversational commerce platforms like Ask Macy's, an AI-powered assistant designed to offer personalized styling advice based on individual preferences and context.

Ultimately, Macy's views AI as an invisible layer that enhances human judgment rather than replacing it. The long-term vision is a retail experience that is increasingly seamless, adaptive, and personalized, driven by intelligent systems that customers may never consciously notice. This continuous improvement, learning from errors and adapting to new technologies, is key to delivering a significantly better customer experience.