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  1. News
  2. › Retailers draw boundaries on AI implementation scope
  3. › Jun 25, 2026
Retailers draw boundaries on AI implementation scopeThursday, June 25, 2026
  • Retail / DTC › Clothing and Clothing Accessories Retailers
  • Retail / DTC › Department Stores
LLMAuthentic Brands GroupJD Finish LinePandoraTecovasUltaAI tool · ultabrand agents · authentic-brands

Retail brands draw AI boundaries around customer experience

Retailers and brands at CommerceNext Growth Summit are increasingly clear about where AI belongs—automating internal tasks like email and customer data analysis—and where it doesn't: in-store customer interactions and product imagery. The consensus shows that AI's real value lies in removing friction for employees and behind-the-scenes operations, not replacing human touchpoints that drive loyalty and conversion.

AI-generated. Summaries are AI-generated from cited sources. Click through for the original report.

At the CommerceNext Growth Summit in New York, retail executives outlined a nuanced AI strategy: deploying AI for internal efficiency while protecting human-centered customer interactions. Tecovas' chief retail officer Kim Heidt emphasized that AI will handle operational tasks like email management but will not touch in-store customer conversations, as she works to train employees to step away from technology and engage authentically with shoppers. Conversely, Ulta launched an AI tool that store associates can use to access product information and trends, designed to give employees more time with guests rather than reduce human interaction.

On the creative and customer-facing side, brands are equally deliberate. Pandora's VP of e-commerce Elizabeth Garry stated that the brand will never use AI-generated model imagery or on-skin photography, believing that customers must see human faces wearing jewelry to connect psychologically with products. However, Pandora does use AI agents online to understand customer intent and guide shopping, with escalation to humans when conversations falter. JD Finish Line, Kendra Scott, and Authentic Brands Group are all mining customer data from call centers, loyalty programs, and digital channels to feed propensity models and brand-specific AI agents that assist humans or route customers intelligently, ensuring that efficiency gains do not degrade the end-user experience.

The overarching theme reflects a maturing AI adoption curve: retailers are moving beyond blanket automation to ask which processes benefit from human oversight and which customer moments define brand loyalty. Commerce leaders are treating AI as a competency that amplifies employee capability and data insights rather than a replacement tool, and they are scrutinizing whether any deployment actually improves the guest or employee experience before deploying it.

Sources:1 report
  • Modern Retail
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ShareLast updated: June 25, 2026