From smart shelves to shopping agents artificial intelligence (AI) is reshaping retail, but many Irish shoppers still want a human touch. The technology is increasingly being used by retailers to tailor offers to customers, but is this really any substitute for the physical browsing experience?
AI is reshaping retailer-consumer dynamics by boosting operational efficiencies and personalisation, yet adoption varies, says David O’Kelly, head of consumer, retail and manufacturing, KPMG. “According to the latest KPMG Next Gen Retail research, only about 13 per cent of Irish consumers trust AI for purchase recommendations, and 21 per cent expect to use personal AI assistants to research products, compare prices and complete purchases, indicating a cautious approach.
“Globally, retailers leverage AI for transaction efficiency and deeper engagement through AI agents. Irish retailers have an opportunity to deepen customer relationships by focusing on transparency, trust and ease of use, positioning them well for both traditional and AI-driven shopping experiences.”
The biggest shift is that AI agents can now shop on your behalf, says Mark Kelly, founder, AI Ireland. “Visa has already rolled out agentic commerce, where an AI agent can browse, compare, and pay for you within limits you set.
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“The experience is becoming instant. You see someone wearing a nice dress, take a picture on your phone, and AI finds it, checks your size, and has it shipped to your home in hours. The gap between wanting something and owning it is collapsing.”
This changes the relationship in a fundamental way, Kelly says. “Retailers used to compete for human attention. Soon they will compete for agent attention. If a customer’s AI agent does the shopping, your website, pricing, and product data need to be readable by machines, not just attractive to people.
“Loyalty changes too. The agent remembers every purchase, every return, every complaint. It will steer customers towards retailers that deliver consistently and away from those that don’t. Trust becomes measurable.
“Retailers should start to treat AI agents as a new customer channel, the same way they once had to treat mobile as a new channel.”
AI can improve the customer experience when it removes friction, speeds up service delivery and supports customers to make more informed decisions, says Cillian Leonowicz, partner and customer and growth lead at EY Ireland. “Examples include customers using prompts to identify products or services based on set criteria such as their budget, other customer reviews or, for travel scenarios, distance from home, or criteria like ‘pet friendly’.
“This speeds up decision-making processes and highlights the importance for retailers and service providers to keep their details updated and visible to the search and AI engines.”
Within stores, Leonowicz says AI can enhance convenience, such as in checkout-less stores in the US. It can improve product availability based on insights from AI assessments of data models which leverage buying patterns and external factors linked to logistics and stock-management systems that respond to weather changes. They also enable more personalised support including real-time discounts or offers while on-site.
“The key is to remain client-centric and relevant. Trust is easily undermined when personalisation feels excessive, when customer data usage lacks transparency or when automated decisions are perceived as unfair or difficult to challenge.”
The greatest opportunities for Irish retailers lie in using AI to optimise store operations, improve stock availability and enhance workforce planning through predictive analytics, says Leonowicz. “For example, AI can forecast demand, leveraging both proprietary and publicly available data sets, to ensure popular products are always available, and to dynamically schedule staff based on anticipated customer footfall.
“Examples of publicly available data sets include weather and economic indicators. In addition, there is an opportunity to reduce food waste by improving the predictability on the quantities of fresh produce required based on more effective demand models.”
Irish retailers can balance automation and human service by using AI for routine back-end tasks, allowing staff to focus on personalised, empathetic interactions, says Cian Kelliher, consulting partner with KPMG. “Older shoppers still prefer human contact, while younger ones embrace self-service, requiring a nuanced approach. As financial pressures mount, getting service right the first time is crucial.
“Automation should enhance efficiency without overshadowing the human touch, ensuring customer experiences remain reliable and personable, reflecting Irish shoppers’ diverse preferences and maintaining confidence even amidst economic challenges.”
