AI Value Takes Center Stage at NRF 2025
The National Retail Federation’s (NRF) annual conference is the premier event for the retail industry, where innovation meets real-world application. In January 2025, members of the Evenica team attended NRF, engaging with the latest advancements in AI, commerce, and retail technology. Evenica’s Kelly Mazur attended the event and recently shared her insights in a podcast interview with Jason Gumpert from MSDW.
Here’s a look at the key takeaways from her conversation, covering everything from AI’s growing impact to the trends shaping the future of commerce.
From AI Excitement to AI Value: A New NRF Focus
What was your biggest takeaway from NRF this year?
Kelly Mazur:
“One of the standout moments for me was attending an NRF event at the Microsoft office, where Shelley Bransten, Corporate VP of Global Industry Solutions, shared an insightful perspective. She noted that last year was all about ‘AI excitement,’ while this year focused on ‘AI value.’ That shift really encapsulated the energy of NRF 2025.
While AI remained a dominant theme, the difference this year was the focus on practical, attainable AI use cases for retailers. Visionary concepts were still present, but we also saw a much-needed balance of real-world AI strategies that businesses can implement today.”
Supporting this sentiment, OpenAI CEO Sam Altman echoed a similar view, stating: ‘AI is overhyped in the short term, but wildly under-hyped in the long term.’
Inside the Microsoft Booth: AI-Powered Retail Experiences
What were you demoing at the Microsoft booth?
Mazur:
“This year, our demo showcased Personalized Shopping Agent, a cutting-edge Copilot-powered sales associate assistant. We highlighted their implementation for Venchi, an Italian retailer specializing in gourmet chocolates and gelato.
Here’s how it works:
- 1. Personalized Customer Interaction: The Personalized Shopping Agent, integrated with Customer Insights, suggests conversation starters based on past purchases.
- 2. Guided Selling: It provides tailored prompts to sales associates, helping them recommend products based on customer preferences.
- 3. Efficient Checkout and Upselling: The Personalized Shopping Agent suggests relevant add-ons, such as gift wrapping or complementary products, to enhance the shopping experience.
- 4. Loyalty Promotion: It identifies opportunities to move customers into the next loyalty tier, strengthening retention.
This solution ensures a consistent and high-quality customer experience—crucial in an industry known for high employee turnover. The demo resonated well with retailers, sparking discussions about additional use cases, compliance, and integrations.”
What other innovations were showcased in the Microsoft booth?
Mazur:
“There were two main themes that stood out:
- 1. Empowering the Retail Workforce: AI-powered tools like Store Operations Agent enhance employee productivity by providing data-driven insights. Canadian Tire, for example, has adopted this tool to assist store associates in delivering highly personalized customer experiences.
- 2. Agile, Sustainable Supply Chains: AI is being used to optimize supply chain operations, reducing out-of-stocks and minimizing waste. A great example is Coles, which leverages AI to improve inventory forecasting and sustainability initiatives.”
Retail Trends at NRF 2025: The Top 3 Takeaways
What commerce trends did you spot on the expo floor?
Mazur:
“Microsoft showcased a strong understanding of where commerce is headed, but these three trends stood out across the expo floor:
- 1. AI Shopping Assistants – AI-driven shopping assistants and chatbots were a dominant feature at numerous booths, demonstrating how AI is enhancing customer service.
- 2. Predictive Personalization – Retailers are moving beyond reactive marketing. An example we saw was AI tools that predicts what a customer will want in the future, rather than just targeting them with ads for recent purchases.
- 3. Social Shopping Evolution – More retailers are leveraging social media to drive sales through virtual events. While not a new trend, its prominence at NRF 2025 suggests it’s becoming a key part of digital commerce strategies.”
Predictions for 2025: The Rise of AI for Retail Employees
What’s next for AI in retail?
Mazur:
“I think we’re going to see more retailers implementing AI solutions that specifically empower retail employees. This year we’ll see retailers selecting one or two AI solutions that solve specific problems, and going all in on using these solutions to their maximum capacity. This will be a change from the last year or two where retailers were dabbling in a wide range of AI solutions, but not necessarily adopting them in a way that drove success.”
Final Thoughts
NRF 2025 underscored a major industry shift—from AI being a buzzword to AI delivering real value. Retailers are no longer just exploring AI; they’re implementing it in ways that enhance both customer and employee experiences.
With AI-powered tools like Personalized Shopping Agent, predictive analytics, and workforce optimization solutions, the retail industry is evolving rapidly. As we look ahead to 2025, AI’s role in commerce will continue to expand, bringing tangible benefits to businesses and consumers alike.
What AI-driven innovations do you think will shape the retail landscape next? Let’s continue the conversation!