2025 outlook: Consumer retail leaders on data, digital and AI

As we approach 2025, consumer retail leaders are increasingly focusing on data, digital transformation, and artificial intelligence (AI) to enhance operations and customer experiences. We interviewed 110 consumer retail leaders and here are top trends

1. Integration of Generative AI

Retailers are adopting generative AI to create virtual shopping assistants, enabling personalized customer interactions and improving engagement.

2. Hyper-Personalization

Leveraging AI to analyze customer data allows for hyper-personalized marketing and product recommendations, enhancing customer satisfaction and loyalty.

3. Virtual Try-Ons

Implementing AI-powered virtual try-on solutions enables customers to visualize products before purchase, reducing returns and increasing conversion rates.

4. AI Agents and Domain-Specific Models

The development of AI agents and domain-specific foundation models is streamlining customer service and operational processes, leading to improved efficiency.

5. Data-Driven Decision Making

Retailers are emphasizing data integrity and analytics to inform strategic decisions, ensuring accuracy and trust in data-driven initiatives.

6. Digital Twins

By creating a digital twin of the supply chain, businesses can monitor, analyze, and optimize operations in real-time, improving efficiency and decision-making.

These developments reflect a strategic shift towards leveraging advanced technologies to meet evolving consumer expectations and drive business growth in the retail sector.