Behind the Numbers: An EMARKETER Podcast

Episode: 3 Consumers Retailers Must Know in the AI Era | Reimagining Retail
Date: April 1, 2026
Host: Susie David Kenyon
Guests:

• Karina Lam, Senior Analyst (UK)
• Sky Canavis, Principal Analyst (Texas)

Episode Overview

This episode dives into new insights from the recent Shop Talk conference, focusing on how artificial intelligence (AI) is reshaping retail. Central to the discussion is the emergence of three distinct consumer archetypes in the AI-powered marketplace. The hosts go beyond conference headlines to analyze real-world implications for brands, discuss changing shopping behaviors, and highlight critical opportunities for retailers to stay competitive.

Key Discussion Points & Insights

1. Shop Talk 2026: AI Front and Center

• AI now dominates the retail conversation: Unlike previous years, AI was not a side topic; it was integrated into every session and format.

• Conference innovation: Shop Talk used debate formats and rapid-fire “retail rumbles” to showcase the diversity of perspectives on AI’s impact.

  • Memorable quote:

    “The big headline theme, the title for this year's conference was AI in retail because of course we can't spell retail without AI anymore.”
    — Sky Canavis (02:11)

• Value of multiple perspectives: The event embraced uncertainty, allowing differing opinions to be aired in real-time, reflecting the industry’s ongoing transformation.

2. Cautious Experimentation with AI

• No one has the definitive answer yet: Fast developments have left brands in a testing and learning phase.

  • Quote from Sarah Marzano (via Sky):

    “Everyone has to be testing and learning, but not reallocating their budget at scale until they have some proof that they're going to be able to get returns for it.”
    (04:22)

• Level playing field: Both large and small retailers are navigating uncharted territory together.

  • Karina: “It kind of puts everyone on a bit of a level playing field… no one really knows exactly how it's going to unfold…” (04:48)

3. Major Retail Announcements & AI Integration

• Brand partnerships with AI:
  • Gap teamed up with Gemini, Sephora with ChatGPT, Nordstrom launched a new shopping assistant, and Macy’s reimagines its digital customer experience.
• A shift from quick transactions to deeper engagement: Macy’s message: encourage customers to spend more time online, not just transact quickly.

4. Retailer Innovation: Google’s AI Cookie Booth

• AI-powered personalization demo: Google’s booth allowed visitors to generate images with AI and print them on cookies—an example of fun, accessible personalization.
  • Sky’s insight: This translates to broader opportunities: “AI can be a tool to… bring our creativity to life... enabling greater personalization for consumers...” (07:42)

5. Real-World Consumer Behavior with AI

• Trust and habit still rule:
  • Karina used AI for product research but made the final purchase through a trusted retailer (09:28).
  • Sky is eager to test all new AI commerce options but finds them not fully rolled out or seamless (10:07).
  • Most consumers’ journeys still “start and end on brand and retailer websites and apps.” (10:51)

6. The Three Types of Consumers in the AI Era

(12:00–17:00)

• Human Consumer:
  • Traditional shopping behaviors, increasingly discerning, values control and agency.
• Human-AI Hybrid:
  • Uses AI tools for research and consideration but maintains decision authority. Most evident in the “mid-funnel” (evaluation/comparison stage).
  • Karina: “AI is becoming a discovery channel… but most use is concentrated in the mid-funnel, for product consideration, research, and deals.” (12:58)
• AI Agentic Consumer:
  • AI agents autonomously make purchases on behalf of consumers. Seen as speculative/future-oriented; real adoption is limited.
  • Sky: “That’s still pretty sci fi… we want to have agency and a sense of control over our decisions and especially how our money is spent.” (11:29)

7. How AI Changes the Shopping Journey

• Role of AI: Primarily supports rather than replaces decision-making.
• Fragmented path-to-purchase: Consumers bounce between search engines, LLMs, retailer websites, reviews, and social media.
• Discovery vs. research distinction: AI ranks higher in research/comparison, less so for initial product awareness (stores and social media still lead there).
• AI doesn’t always save time: Only a third of respondents said AI assistants made buying faster; two-thirds said the process took the same or more time (15:59).
  • Sky: “The middle of the funnel is potentially more stretched out and covering more sources…” (16:45)

8. Retail Hype vs. Reality

• The hype around “zero-click commerce” (discover, research, buy all in one AI platform) isn’t reflected in current consumer behavior.
  • Karina: “There’s maybe a little bit of overestimation in terms of discovery... we’re really not seeing that kind of happen in consumer behavior.” (17:05)

9. Opportunities for Retailers: Controlling Experience

• Invest in proprietary AI:

  • Retailers should develop their own AI tools/assistants, provide smooth handoffs from AI-driven discovery to their platforms, and reduce friction at checkout (18:09).
  • Mobile conversion still lags, especially with AI-generated traffic—a traditional pain point persisting in the AI era.

• Data and relationship ownership:

  • Integrating retailer apps with LLMs blurs lines of customer relationship/data ownership, providing opportunities for shared value.

• Early data suggests high value:

  • Macy’s reports AI shoppers spend 4x more than others via test integrations with Google’s universal commerce protocol (22:40).

10. Notable Real-World Implementations

• Amazon’s Rufus: AI prompts embedded across the site, encouraging “passive AI adoption,” often without the user’s awareness (19:36).
• Walmart’s Sparky Assistant in ChatGPT: Offers transactional continuity for users switching from ChatGPT to Walmart, although availability and seamlessness are still being ironed out (21:00-21:33).

Notable Quotes

• On the AI narrative:

  “We can’t spell retail without AI anymore.”
  — Sky Canavis (02:11)

• On experimentation:

  “Everyone has to be testing and learning, but not reallocating their budget at scale until they have some proof that they're going to be able to get returns for it.”
  — Sarah Marzano via Sky (04:22)

• On consumer control:

  “We want to have agency and a sense of control over our decisions and especially how our money is spent.”
  — Sky Canavis (11:29)

• On shopper behavior:

  “You know, AI is just part of that journey. It’s not replacing the kind of traditional path to purchase.”
  — Karina Lam (15:01)

• On friction in the journey:

  “We end up with a middle of the funnel that’s potentially more stretched out and covering more sources as well.”
  — Sky Canavis (16:45)

Timestamps for Key Segments

• 00:55 — Analyst introductions
• 02:03 — Shop Talk AI theme and conference format changes
• 04:22 — Quote on testing, not scaling budgets yet
• 06:40 — Google’s AI-powered cookie personalization booth
• 09:28 — Real-world use of LLMs for retail shopping
• 11:10 — Introduction to the “three consumers” concept
• 12:58 — The human, hybrid, and agentic consumer defined
• 15:01 — International similarities in AI-influenced shopping paths
• 15:59 — Survey findings: AI doesn’t always make shopping faster
• 17:05 — Hype vs. reality: Zero-click commerce
• 18:09 — Actionable advice for retailers; importance of owning AI integrations
• 19:36 — Examples of retailer-embedded AIs: Amazon’s Rufus and Walmart’s Sparky
• 22:40 — Macy’s data: AI shoppers spend 4x more

Takeaways for Retailers

• AI’s main influence today: Mid-funnel (product research/comparison), rather than end-to-end, autonomous shopping.
• Trust still trumps novelty: Consumers use AI for advice, but default to trusted retailer platforms for purchases.
• Prioritize your own AI infrastructure: Control experience, reduce friction, and build deeper customer understanding.
• Embrace omnichannel personalization: Use AI to personalize experiences, but support the shopper’s need for verification/review.
• Monitor and adapt: The AI landscape shifts rapidly—test, learn, and iterate based on what actually moves the needle.

Memorable Moment

• AI-powered personalized cookies at Google’s booth symbolized both the playful and practical sides of AI in retail—demonstrating how technology-driven customization can delight consumers and broaden the concept of personal engagement.

This episode is a must-listen for anyone wanting to understand the practical, hype-free realities of AI in retail, and how both consumers and brands are adjusting in 2026.