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AI in Retail: From Analytics to Autonomous Decision-Making

AI in Retail AI in Retail

For those of us who’ve been watching the AI revolution unfold, the shift from analytics to autonomous decision-making feels inevitable. Yet, seeing it in action is another thing entirely. I had a chance to sit down with Gurhan Kok, founder and CEO of Invent.ai, to get his thoughts on the what, how and where of AI at the present moment – and where it will be taking retail in the near future.

For context, Invent.ai was originally founded as Invent Analytics. They spent over a decade helping retailers optimize inventory and pricing. Now, they’re leading the charge into a new era where AI is not just a tool—it’s the engine that drives profitability and customer satisfaction.

AI’s New Role in Retail: Beyond Automation to Optimization

The role of artificial intelligence in retail has changed dramatically. What started as a way to crunch numbers and assist decision-makers has evolved into a system that makes decisions on its own. Instead of just analyzing data, AI is now executing—adjusting prices, managing stock levels, and even predicting supply chain disruptions before they happen.

It’s a fundamental shift. In the past, retailers had to rely on teams of planners to study sales trends, anticipate demand, and manually adjust operations. Today, AI systems like those developed by Invent.ai can process millions of data points across thousands of stores, learning in real-time and optimizing inventory and pricing dynamically. It’s the kind of transformation that doesn’t just make businesses more efficient—it changes the entire way they operate.

How AI is Driving Revenue and Efficiency Today

To understand how AI is reshaping retail, it helps to look at real-world examples. Two retailers, Academy Sports and Famous Footwear, have seen firsthand what happens when AI is given the reins.

Academy Sports, a $7 billion retailer, wanted to see whether artificial intelligence could outperform its traditional inventory management processes. Rather than flipping the switch overnight, they took a controlled approach, allowing AI to take over 20% of their inventory decisions while the remaining 80% stayed under human control. The results were striking. The AI-managed portion of the business generated significantly higher sales while using less inventory. It was a crystal-clear validation of AI’s ability to not only improve efficiency but also drive more revenue. Once the data was in, Academy Sports had seen enough. They rolled out AI-driven inventory management across the entire business, unlocking millions of dollars in additional profitability.

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A similar story played out at Famous Footwear. The retailer struggled with traditional pricing strategies that often relied on gut instinct and broad, one-size-fits-all discounting. With Invent.ai’s pricing engine, pricing decisions became data-driven and highly dynamic. AI adjusted prices based on sales velocity, competitor activity, and even external factors like seasonality and economic trends. Almost immediately, the company saw millions in additional weekly revenue—not from raising prices indiscriminately, but from optimizing markdowns, promotions, and demand-based pricing. The takeaway? AI doesn’t just make processes faster—it makes them smarter, generating measurable financial results.

What’s Next in Retail AI?

We’re only scratching the surface of what AI can do. Over the next two years, artificial intelligence will move even deeper into retail operations, redefining the role of human planners and decision-makers. One of the biggest shifts will come from AI agents—autonomous systems that not only make decisions but also monitor their own effectiveness and adjust accordingly. Imagine a system that can not only predict demand fluctuations but also recognize when its forecasts are drifting off course and self-correct in real time. That’s where we’re headed.

Retailers will also start using AI to incorporate more external variables into their predictive models. Instead of just looking at historical sales data, AI will analyze things like weather forecasts, competitor pricing, global supply chain disruptions, and even cultural trends to make smarter decisions. The accuracy of these models will continue to improve, making AI even more indispensable to retailers looking for an edge.

Lowering the Barrier to AI Adoption

One of the most common objections to AI adoption is the belief that it requires a massive technological overhaul. Many retailers assume they don’t have the infrastructure, the data, or the internal expertise to implement AI effectively. But that assumption is increasingly outdated.

Invent.ai is proving that artificial intelligence can be implemented in months, not years. Modern AI systems don’t require perfect data—they’re designed to work with what’s available and fill in the gaps. And rather than requiring retailers to rip out their existing infrastructure, AI can be layered on top of current systems, providing immediate ROI without a complete overhaul.

The reality is that AI adoption is easier than most retailers think—and the companies that move quickly will be the ones that come out ahead.

The Cultural Shift: AI’s Role in Retail Workforce Transformation

It’s not just the technology that’s changing—it’s the people. AI isn’t just a tool that helps employees do their jobs better; it’s changing what their jobs actually are. Planners, buyers, and pricing managers who once spent their days buried in spreadsheets are now stepping into higher-level, strategic roles.

With AI handling the grunt work—adjusting stock levels, setting prices, optimizing promotions—human teams can focus on bigger-picture strategy and creativity. Instead of manually running reports, they can think about how to differentiate their brand, create unique customer experiences, and innovate in ways that AI simply can’t.

This is perhaps the most profound shift AI is bringing to retail. It’s not just about making operations more efficient—it’s about freeing human talent to do the things machines can’t. The best retailers will be the ones that embrace this shift, rethinking roles and investing in the skills that will define the next era of retail leadership.

What’s Next: AI as a Retail Competitive Advantage

We’ve reached a tipping point. AI is no longer an experiment or a future possibility—it’s a competitive necessity. The retailers that fully embrace AI-driven decision-making today will be the ones setting the pace for the industry tomorrow. The companies that hesitate? They’ll be playing catch-up.

AI isn’t about replacing people—it’s about amplifying their capabilities. It’s about making faster, smarter decisions and freeing up human teams to focus on innovation. As artificial intelligence continues to evolve, retailers will face a simple choice: adopt and lead, or resist and fall behind.

The future of retail belongs to those who trust AI to do what it does best—so that people can do what they do best. And for those that take the leap, the rewards will be well worth it.

Photo by Google DeepMind on Unsplash

Author

  • mike giambattista

    Mike is Editor in Chief at Customerland. He is a customer technology, customer engagement, media &; marketing professional who has been helping organizations understand their competitive marketspaces and leverage found opportunities for success. Customer Strategies - Reach Strategies - Engagement Strategies.

    View all posts

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