What Are AI Agents in Retail?
AI agents combine all the capabilities of traditional AI tools with autonomous analysis, decision-making, and action. AI agents for retail can execute end-to-end workflows like inventory restocking, refining promotions, and guiding customer interactions—all with minimal human oversight.
Agents ingest real-time data from across channels, apply business rules, and trigger actions automatically, transforming standalone AI models into continuous, adaptable, self-driving systems that adjust to changing market conditions.
Retailers are often positioned more readily for adoption thanks to their use of ERP and point-of-sale systems, often orchestrated on the cloud for centralized data management. With a strong data foundation set, retailers can deploy agents with speed and confidence.
Those that do are seeing tangible benefits and business impact in key areas like:
- Autonomous workflow orchestration: Continuous, end-to-end execution of complex manual tasks—like coordinating multi-location inventory restocks—to drive operational efficiency.
- Context-aware decisioning: Agents analyze live sales, customer behavior, and external signals to autonomously adjust pricing and promotions.
- Closed-loop optimization: Self-monitoring feedback loops enable agents to learn from outcomes and iteratively refine strategies across inventory, pricing, and merchandising.
- Proactive exception handling: Instant detection and remediation of operational anomalies—such as stock imbalances or sudden demand spikes—through automated action plans.
- Dynamic customer engagement: Intelligent agents initiate personalized outreach and recommendations based on real-time cues to boost conversions and increase customer satisfaction.
The initial shift towards agent-driven retail is laying the groundwork for scalable innovation. As AI agents mature and integrate further, retailers can expect accelerated ROI, greater operational agility, and enhanced AI-powered customer experiences that drive competitive advantage and steady growth.
Top 4 Use Cases for AI Agents in Retail
In retail, agentic AI unlocks new opportunities by embedding intelligence directly into core processes. Below, we explore four critical AI agent use cases that are already changing AI in retail—from streamlining supply chains to enhancing on-the-ground customer support.
1. Analytics-Driven Campaign Optimization
Using live market intelligence, customer engagement signals, and predefined margin thresholds, AI agents autonomously calibrate pricing structures and orchestrate promotional campaigns across different channels. They can adjust discounts, reallocate promotional budgets, and schedule targeted flash sales in real time to achieve maximum revenue capture during high-demand windows without manual intervention.
Agents can then continuously learn from campaign outcomes, refining parameters to boost ROI and maintain competitive positioning. This capability was a top talking point at Shoptalk Europe 2025, one of EU's leading annual retail events. Unlimitail CEO Alexis Marcombe called agents a "game changer" for structuring campaign data and optimizing overall management.
"You just have to ask what you want your agent to do," Marcombe noted, "and it will be delivered."
2. Virtual Shopping Assistants
By embedding AI agents in websites, mobile apps, and kiosks, retail companies can create users with dedicated virtual assistants. Agents can guide shoppers with product discovery, styling recommendations, and voice-driven interactions, blending conversational AI with backend systems to personalize customer journeys.
At the aforementioned Shoptalk Europe event, General Manager for Global E-Commerce at L'Oréal, Mark Elkins, explained how agents will play a role in reading product descriptions and using it to guide consumers in the right direction.
To optimize visibility, brands will need to add experience context in addition to functional descriptions. Elkins used the example of an SPF product, which, instead of a simple ingredients listing, might also have to include text about "going on holiday" that agents could scan and align with consumer buying intent.
In some cases, like that of retail giant Walmart, retailers are even looking beyond personalized recommendations, exploring agents that autonomously manage shopping lists and replenish items based on learned user preferences.
3. Shelf Optimization
Agents enhance physical retail by continuously evaluating store layouts against sales performance, traffic patterns, and inventory data. They can recommend optimal product placements, adjust shelf configurations, and trigger promotional display updates automatically to both drive higher sales per square foot and improve shopper experiences.
AWS dubs the concept "The Agentic Store", where agents can, for example, monitor stock levels and take actions like automatically triggering restocking tasks or adjusting electronic shelf labels. By using customer data effectively, agents can make products more discoverable and provide personalized product recommendations that convert at a higher rate.
4. Dynamic Customer Service
Agents serve as first-line responders to customer inquiries across chat, email, and social channels—automating routine support tasks such as order status updates, return authorizations, and FAQ resolution. By integrating context like CRM data and sentiment indicators, customer service agents can personalize interactions and escalate complex issues to human agents when needed.
Finding the right balance between answering questions quickly with AI and human intervention is key. Walmart is again a leader in this area, highlighting its own commitment to using agents as a way to improve service response, quickly route inquiries, automate the "mundane," and loop humans in when needed to handle more complex issues.