Retailers are seeing a massive push toward agentic AI – AI bots making purchases on behalf of consumers.
The Navigators AI Brandscape Report found 39 per cent of Australians are already using AI to make shopping decisions, 31 per cent act on AI recommendations, and 27 per cent are open to buying directly via an AI tool.
To prepare for the near-term eventuality of machines doing the shopping, retailers are being advised to get their website backends and product feeds in order. Forget about banner ads and add-to-cart upsells – AI shopping agents won’t be tempted by these sorts of tactics. They will be on a mission: cold and calculated, unswayed by emotion like us humans.
While agentic AI presents an opportunity for retailers, it’s likely to cause untold damage to customer loyalty. If the bots are looking for the best deal, price and efficiency will always trump brand. There’s also the danger of going all in to optimise for the bots and forgetting about the consumer.
What lies ahead is a battle between functional efficiency and emotional connection.
A brand that is already treading this fine line is David Jones, a business at the crossroads of experience versus automation.
David Jones is in a recalibration phase: a heritage premium brand in a discount-first economy. James Holloman, DJ’s chief marketing officer, describes his role as ensuring the continuing connection between customer, community and brand.
Tasked with making the business “future-fit”, in recent months, the department store has talked up its digital transformation projects. The $65 million tech overhaul includes a new mobile app, AI-driven inventory management, and the launch of a retail media business.
But the brand is also investing heavily in its loyalty programme, which is smart because if it tries to compete purely on digital efficiency or automated luxury, it will lose its reason for being. This retail recalibration requires an emotional flywheel.
Brand love for David Jones comes from the sensory in-store experience. Shoppers want to touch, feel, smell and taste the luxury on offer. They want to feel a part of something exclusive. Delivering an unforgettable real-world customer experience is key.
At the other end of the department store spectrum is Kmart. A brand that isn’t just a store anymore, it has a cult following. Kmart has turned “cheap” into a savvy lifestyle decision. Its success isn’t just about the $5 toaster; it’s about the consistency of the message.
With AI bots crawling organic postings and broader social media, brands are learning what humans genuinely want, not just what is cheapest. TikTok and Reels “made me buy this” content is always trending on social media. Similarly, the platforms are awash with Kmart Mums Facebook groups, hacks and hauls as devoted Kmart shoppers share their love for the brand. To keep the love alive, everyday low prices are only one part of the equation. Product design, curation and listening to the needs of the human customer are required.
Having a website enabled for bot shopping will soon be table stakes. It’s a requirement that might make your brand functional, but it won’t make it loved.
With KPMG finding 81 per cent of retailers are feeling the impact of reduced consumer spending, it’s tempting to reduce headcount. But we still need humans to design and curate products humans love, to design in-store experiences that make them hand over their credit card and fork out eye-watering amounts for luxury items.
As the great automation of retail continues, the question will be: are we building brands that people love or just feeding the bots? Surely we’ve got to do both.
