Amazon Prime Day 2026 may break records with projected online sales at the ecommerce player and other companies reaching $26.3 billion, a 9% increase from last year, according to Adobe Digital Insights. Significant price cuts and a shift towards mobile transactions are key factors. AI is playing a pivotal role in product discovery, with 39% of consumers using generative AI tools for research. However, there is still consumer skepticism regarding AI, with concerns about data privacy.

AI is increasingly integrated into retail merchandising, automating tasks such as inventory management, demand forecasting, vendor negotiations and assortment planning. Solutions from companies like Duvo.ai and Relex Solutions handle processes ranging from analyzing supplier emails to automating weekly planning meetings and planogram development. Retailers like Walmart and Target have launched in-house AI assistants that streamline data entry, trend analysis and operational queries. These AI tools allow merchants to focus more on strategic decision-making and customer engagement while reducing manual, repetitive work.

Gap Inc. is advancing its marketing strategy through AI to unify and analyze customer data, automate campaign creation and enable real-time decision-making. Google Cloud will serve as the backbone for Gap's new unified data foundation, integrating customer and product intelligence to support the retailer's marketing transformation. The transformation enables marketing teams to focus on strategy and creative storytelling, while AI handles data-driven optimization and personalization at scale.

PepsiCo, Danone and Nestle are using AI to enhance growth and efficiency through predictive analytics, digital twins and automation for a variety of purposes including demand forecasting, waste reduction, cost management, compliance and traceability. Additionally, AI supports sustainability efforts by tracking carbon emissions and optimizing energy use.

IKEA's "ThisAbles" campaign, which won at Cannes in 2019, highlighted the importance of evidence in the AI-driven answer economy by providing 3D-printable add-ons for people with disabilities, demonstrating real-world problem-solving. Pete Blackshaw of BrandRank.AI says brands must focus on creating verifiable solutions to meet consumer expectations and gain algorithmic recommendations, rather than just making claims.

Ask 3M, a 3M AI-driven tool designed to provide industrial customers with fast, self-service access to expertise on adhesives and tapes, has launched. This tool allows customers to ask questions in plain language and receive responses grounded in 3M's extensive documentation. This innovation provides more direct access to information, improving customer collaboration and decision-making across various industries.

Consumers have limited patience with automated customer service systems, with 55% requesting a human within three minutes and 53% avoiding a chatbot to force a transfer, according to a survey by Parloa. Frustrations with these systems lead to significant brand loyalty issues, as 35% of consumers switch brands after a poor experience. The survey highlights that while many consumers are open to effective automation, the current systems often fail to meet expectations, impacting brand reputation and revenue.

Research from Ulta Beauty and NielsenIQ indicates that Gen Alpha boys are early adopters of AI in beauty and personal care shopping, with 26% using AI shopping assistants. The study also shows that while 78% of Gen Alpha learn about beauty online, 77% prefer in-store purchases, especially for fragrance and makeup.