AI is rapidly transforming the shopping experience, shifting consumer behavior from traditional search to conversational interactions with intelligent agents like Walmart’s Sparky and Amazon’s Rufus. These AI tools now play a central role in providing personalized recommendations, taking into account specific shopper needs and preferences, explains Acosta Group’s President of Connected Commerce John Carroll.
Growing awareness of these platforms, particularly among Gen Z and millennials, is driving new demands for brands and manufacturers to optimize product data for AI-driven environments, making digital shelf content and data structure essential for visibility and conversion. Here, Carroll dives into the technology trends, challenges and opportunities in the space today and discusses a new Acosta Group partnership that is expected to help guide the future of brand and retailer tech strategies.
Looking at connected commerce broadly, what are the most critical needs and challenges brands and retailers are facing in 2026?
We’ve seen more disruption in the last five years than in the previous 50, but the next 24 months will be even more intense. We are focused on three things:
- Returning to unit growth: For the past few years, growth was driven by inflation. We saw dollar growth, but unit volume actually declined. Now, we’re seeing both dollars and units slip. The industry must figure out how to drive real productivity again.
- The loyalty crisis: Shoppers are now visiting six to eight different outlets to find the best deals. Whether you are a regional grocer or a global CPG, building repeat purchase behavior in a world of growing private labels is harder than ever.
- The AI imperative: There is a massive reallocation of capital toward tech and AI. AI has been adopted by consumers faster than laptops or smartphones ever were. If you aren’t using it, you are at a competitive disadvantage.
The rise of “agentic” shopping
You mentioned AI is becoming a part of the consumer’s daily life. How is that changing the actual shopping mission?
It’s moving from “search” to “conversation.” It’s no longer just typing “paper towels” into a search bar. Consumers are asking AI agents — like Walmart’s Sparky, Amazon’s Rufus or Instacart Ask — complex questions.
For example: “I’m going on a picnic; my kid has a peanut allergy, and I need healthy snacks.” The AI isn’t just showing products; it’s making recommendations based on reviews and digital shelf content. This puts immense pressure on manufacturers to ensure their data is “scrapable” and optimized for these LLMs.
Studies showed that while consumers use AI, they weren’t always aware of specific retailer tools. Is that changing?
Dramatically. In early 2025, awareness of tools like Rufus or Sparky was less than 20%. By the post-Thanksgiving shopping weekend, more than half of shoppers used AI for their trips, with 39% of those shoppers using retailer apps, according to our research. Retailers are putting these tools front and center because they offer real value — like finding the perfect gift for a five-year-old without the manual search. Gen Z and millennials are leading this, trusting organic AI recommendations over traditional sponsored ads.
Strategic alliance: Acosta Group + CommerceIQ
You recently announced a strategic alliance with CommerceIQ. What does this mean for your clients?
Acosta Group has 98 years of retail heritage and “white glove” service. We are investing heavily in technology and looking for great partners. By partnering with CommerceIQ, we’ve integrated their best-in-class AI software into our service model.
It’s a “1 + 1 = 3” scenario. We provide the strategic retail expertise, enabled by technology that makes us faster and more insight-based. We can now get to answers and ROI metrics instantly, allowing us to be more strategic with how we help brands win at the digital and physical shelf.
The future of retail media networks
Retail Media is expanding rapidly. What should retailers and brands be cautious about as these networks grow?
It cannot just be a “money grab” for retailers. They have to show clear value. To win brand dollars, retailers need to provide accurate, aligned metrics like incremental return on ad spend.
The next frontier is combining merchandising with media. If a brand makes a big retail media buy, they want to see that reflected in-store — with endcap displays or prominent shelf placement. The winner will be the retailer who can provide a seamless experience between the digital ad and the physical aisle.
Final takeaway
If you had to summarize the most important theme for the year, what would it be?
Perspective. You can’t just look at a retail media tactic in a vacuum. You have to understand that AI is bubbling up from the bottom — salespeople, analysts and supply chain managers are using it every day to be more efficient. This is a permanent step-change in how our industry functions.
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