AI Is Retail's Smartest Investment In An Uncertain Economy

Forbes

28-07-2025

Brett Beveridge is the Founder and CEO of T-ROC Global.
Retailers big and small are feeling the squeeze from rising production costs, shifting trade regulations and constantly evolving consumer habits. AI has become one of a retailer's most powerful allies, quietly reshaping the rules of the game.
While considered futuristic or even reserved strictly for tech giants, AI has stepped into the retail spotlight as a lifeline. Helping to streamline operations and deliver smarter customer experiences, AI is enabling retailers to survive economic turmoil, adapt and thrive.
Let's face it—customer shopping preferences and habits vary tremendously based on demographics, location, cultural influences, lifestyle choices or even just the time of day they shop. Inflation has tightened wallets, supply chains remain unpredictable and businesses are under pressure to do more with less. AI can process enormous amounts of data and make lightning-fast decisions. It is giving retailers an edge when they need it most.
AI And Smarter Inventory Decisions
AI is extremely valuable for inventory management. A store might overstock to avoid losing sales, but AI helps make informed decisions by analyzing patterns such as consumer buying habits, seasonal trends and even weather forecasts. It can predict what products will be in demand and when—helping retailers eliminate waste and save money.
We worked with a retailer in television sales with stores across the country. Using AI, we analyzed customer purchasing behavior and the demographics of the store's visitors and the surrounding community. We discovered that customers in that area preferred smaller TV screens. We recommended adjusting inventory to reflect that demand. Within a few months, the store not only met its sales goals—it skyrocketed past them.
Enhancing Customer Experience And Supporting Retail Teams
Many people notice that their phones or apps recommend products that feel perfectly tailored to what they need. That's a perfect example of AI at work. Retailers are using machine learning to better understand customer behavior and deliver more personalized experiences—ranging from emails featuring favorite brands to apps that suggest outfits based on past purchases.
Retailers use these tools for good reason. Personalized experiences have been shown to increase loyalty, even when consumers are spending less. With an impending recession, keeping customers happy and returning matters more than ever.
One of the biggest concerns surrounding AI is that it will replace human workers. But in retail, many companies are using AI to support teams, not eliminate them. For example, chatbots handle basic customer questions 24/7, freeing staff to solve more complex issues. Automated systems manage scheduling, so managers can focus on people rather than paperwork. It's not about replacing workers—it's about filling the gaps.
The Seamless Shopping Journey
Shopping only in-store or only online is a thing of the past. Today's consumers move between mobile apps, websites, brick-and-mortar locations and social media. AI helps connect all of these touchpoints to create a seamless omnichannel experience—so smooth that moving between platforms feels effortless.
For example, AI can recommend in-store pickup based on a customer's location or remember what that customer browsed online when they later visit a store. That kind of integration builds trust and convenience—especially important when shoppers are cautious about spending.
Responsible Use Matters
As with all aspects of retail, AI needs checks and balances. Retailers must handle customer data responsibly and be transparent about how AI is used. When used ethically, AI has the potential to make shopping not only smarter but fairer and more responsive to real needs.
Looking Ahead: AI As Retail's Smartest Investment
AI isn't here to replace the in-store experience. It's here to power the future—and help retailers, physical or online, to evolve. It can make businesses more efficient, customers more satisfied and the industry more resilient in uncertain times. As retail weathers economic storms and reimagines the future, AI is becoming one of the smartest investments a business can make.
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