Artificial intelligence is quietly but profoundly reshaping retail. While consumers might notice only conversational interfaces or personalized recommendations, the real change happens behind the scenes: in product search engines, inventory management, software development, and real-time responses to customer behavior. Major traditional retailers, to stay competitive, are adopting an AI-first approach that redefines the entire way of operating.
Macy's adopts an AI-first philosophy to accelerate decisions
Macy's, one of America's retail giants, has embraced this philosophy under the guidance of senior director of engineering Murali Murugan. The approach does not simply add smart features to existing processes but redesigns the decision flow by integrating AI into key systems such as personalization, search, operational planning, and software development itself. "AI first is about redesigning how decisions happen so the business moves faster and every experience feels more relevant by default," Murugan explains.
Sponsored Protocol
From quick wins to scale: the evolution of AI in retail
Early implementations focused on high-impact use cases like search recommendations and customer engagement, where measurable gains in conversions and friction reduction generated internal momentum. "Once we established the quick wins, scaling was a business decision, not a technology debate anymore," adds Murugan. This momentum has extended to conversational commerce through tools like Ask Macy's, an AI-powered shopping assistant that acts as a personal stylist, understanding verbal descriptions and offering recommendations based on past purchases, preferences, and context.
AI as an invisible layer augmenting human judgment
Despite automation, Macy's sees artificial intelligence as an invisible layer that amplifies human judgment, not replaces it. The long-term vision is a seamless, adaptive, and personalized retail experience powered by systems customers may never notice. "The real transformation comes from continuous improvement, from learning from mistakes, from quickly adapting to new technology standards," Murugan emphasizes. The result is a significantly better customer experience, built on timing and execution.
Sponsored Protocol
For insights on keeping retail IT infrastructure secure, check out the guide on Safe WordPress Updates, which provides strategies for updating systems without risk. The original report is available at MIT Technology Review.
Source: https://www.technologyreview.com/2026/06/25/1137848/repositioning-retail-for-the-ai-era
