There were two little letters on everyone’s lips: AI.
Each year, the National Retail Federation, a leading industry trade group, hosts one of the industry’s largest conferences, known as Retail’s Big Show. I attended the convention, held in New York City from January 11 to 13, for the first time to hear from industry insiders about the retail trends to watch in 2026.
This year’s event drew speakers such as Walmart’s incoming CEO John Furner and Google CEO Sundar Pichai, who announced a new AI deal this week, as well as Fanatics CEO Michael Rubin. It was clear that artificial intelligence was the big topic on the minds of the attendees from over 5,000 brands at the event.
Walking the expo hall, “AI” and “agentic” seemed to be mentioned on nearly every other banner or booth I passed. Onstage, retail leaders touted their AI strategies.
Large retailers, such as Walmart and Lowe’s, have introduced their own AI shopping agents or partnered with AI platforms like Google’s Gemini and OpenAI’s ChatGPT; however, these efforts are still in their early stages.
I also saw firsthand how some companies are experimenting with new technologies. There were humanoid robots walking up to greet attendees and digital drive-thru menu boards with bright colors advertising to retailers what their AI-powered menus could look like.
Customer service is the driving force behind a lot of AI efforts
Despite some of the noise surrounding retail’s AI-powered direction, CEOs, including Fran Horowitz of Abercrombie & Fitch, said young founders should keep the fundamentals top of mind while embracing innovation. Improving customer service, for instance, remains at the forefront of retailer decision-making.
In one session, Ralph Lauren’s chief branding and innovation officer, David Lauren, talked about his brand’s longtime partnership with Microsoft. It led to the creation of Ask Ralph, a chatbot-style customer assistant. The bot is powered by Microsoft’s AI, but it is designed to function like a styling assistant that suggests clothing based on prompts, such as an occasion you’re attending.
It’s a taste of the future with the personal touch customers may want from a store associate.
“It’s like having Ralph Lauren in your pocket,” Lauren said at the conference.
Quality takes priority over convenience
Currently, AI is most useful for bargain-hunting and basic customer service, according to a panel about Gen Z that included members of The Z Suite, a collective of consultants specializing in the consumer space. Chatbots like Ask Ralph can be convenient in a pinch, but the shopping experience doesn’t begin and end there, the Gen Z consultants who ranged in age from 17 to 24 said.
Young people seem to still crave some of the old-school fundamentals that define retail: quality, customer service, and in-store experiences. There’s no replicating trying on the perfect dress in person, one young panelist said.
They said they see AI as a starting point that they can use to find the unique items they covet. They’re willing to put in the work to find the right item for them. This includes scouring Reddit for “real” reviews that TikTok influencers may not offer, said Olivia Meyer, a buyer who is part of The Z Suite.
And although they’re not rushing to get on the phone with a customer service representative, the consultants said they want to talk to a human when their money is at stake.
Consumers want the truth about what they’re buying
These Gen Z retail professionals, who also included a global merchant for Calvin Klein and a marketing associate, said they want their clothes to come from authentic brands that are transparent about their use of AI. They pointed to online speculation about AI models in ads, saying Gen Z doesn’t care if the brands use AI models; they just want the truth.
They want to get their money’s worth for the clothes that they’re buying, which is why data shows this demographic is straying away from fast fashion and toward shopping secondhand on sites like Vinted and eBay.
True Religion’s chief marketing officer, Kristen D’Arcy, who moderated the panel, said shoppers are craving authenticity in the world of AI-generated content, and it’s making them more discerning. To that end, the denim brand has leveraged partnerships that align with its values, such as collaborations with artists like Megan Thee Stallion.
The three-day event gave me a glimpse into the retail landscape of 2026.
AI may be the loudest trend, but that doesn’t mean brands should forget the basics.
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