Big retailers are committing more heavily to agentic AI-led commerce, and accepting some loss of customer proximity and data control in the process.
As reported by Retail Dive, the opening weeks of 2026 have seen Etsy, Target and Walmart push product ranges onto third-party AI platforms, forming new partnerships with Google’s Gemini and Microsoft’s Copilot, after last year’s collaborations with OpenAI’s ChatGPT. These let consumers purchase goods inside the AI’s conversation interface.
Amazon and Walmart have been investing in their own consumer-facing AI assistants, Rufus and Sparky respectively to change how shoppers interact with their brands.
Agentic AI is beginning to redraw direct-to-consumer engagement, and industry figures regard this trend as an important moment in online retail. “I think this has the potential to disrupt retail in the same way the internet once did,” Kartik Hosanagar, a marketing professor at the Wharton School of the University of Pennsylvania, told the website’s reporters.
Partnering with AIs like ChatGPT or Gemini engages consumers wherever they happen to be and may choose to shop. Adobe’s 2025 Holiday Shopping report found that AI-driven traffic to US e-commerce sites grew 758% year on year between in November 2025, and Cyber Monday saw a 670% increase in AI-referred retail visits.
“What we expect is a deepening of consumer engagement,” Katherine Black, a partner at Kearney specialising in food, drug and mass-market retail, said in an email to Retail Dive. “More shoppers will rely on AI for purchasing, and across a wider range of missions. As retailers’ capabilities within these tools improve, adoption should accelerate further.”
Meeting customers on AI platforms comes with trade-offs, according to industry observers, with questions around data ownership and the risk that retailers are sidelined. 81% of retail executives believe generative AI will erode brand loyalty by 2027, according to Deloitte’s 2026 Retail Industry Global Outlook, published earlier this month.
Retailers’ websites or apps provide a stream of behavioural data, and if discovery, evaluation, and purchase happen externally, any insight doesn’t reach the retailer. “This fundamentally changes where power sits,” Hosanagar said. “Control over the agent increasingly means control over the customer relationship.”
Google and Alphabet CEO Sundar Pichai has unveiled new commerce tools for Gemini, outlining how it will support customers from discovery to final purchase. Nikki Baird, vice president of strategy and product at Aptos, says this raises difficult questions. “What he’s describing is Google owning the data across discovery, decision and transaction. Even if some information is shared back, missing context from those stages leaves retailers with a much poorer understanding of their customers.”
Pichai reassured retailers collaboration remains central to Google. “From nearly three decades of…
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