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Industry Trends

How AI is Reshaping Retail Marketing and Advertising

How AI is Reshaping Retail Marketing and Advertising

How AI is Reshaping Retail Marketing and Advertising

AI isn’t just an add-on in retail marketing—it’s fast becoming a must-have. Nearly 90% of advertisers are now using generative AI to build video ads (IAB). That’s not a trend; it’s a seismic shift in how we reach and engage shoppers, both online and in-store. What does this look like in practice? We’re already seeing brands use AI to create highly personalized videos and make real-time campaign adjustments based on shopper behavior.

But with all this opportunity comes a responsibility to build AI into your marketing in ways that are transparent, measurable, and secure. Leading brands and retailers are measuring the ROI of their AI investments and implementing governance structures to guide adoption at every level. However, there’s still work to do: only about one in four retail marketers has a formal AI program in place. Here’s how we can work together to make AI a growth driver, not a headache:

  • Start with clear goals, defining what success looks like for your brand before rolling out new tools.

  • Choose AI solutions that are designed for retail’s unique needs and can be measured against hard numbers.

  • Prioritize data privacy and security from the start to keep shopper trust strong.

AI in retail marketing isn’t science fiction, it's happening now, and it’s raising the bar for results. When we approach it strategically, we don’t just keep up, we lead.

Sources: “Nearly 90% of Advertisers will Use Gen AI to Build Video Ads, According to IAB” TV Technology; “How Agentic AI Is Reshaping Consumer Marketing—And How To Navigate It” Forbes

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Perspective from a team that builds consumer brands for a living. Explore our thinking on creative strategy, media, consumer research, and the larger trends that matter to marketing leaders.

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