Retail is no longer just about selling products, it’s about capturing attention in a world where almost anyone can become a seller. From influencers to publishers to global brands, the line between content and commerce is vanishing, and the retail landscape is being reshaped by two major forces: AI and consumer emotion.
The Great Retail Shift: From Fulfillment to Discovery
“Retail is this amazing swirling mess,” says Tom Goodwin, A digital business transformation specialist with a quarter of a century’s worth of experience. Today, it’s not just traditional retailers who are in the game. With a few lines of code, anyone with an audience, be it a musician, a publisher, or a TikTok creator, can become a retailer.
At the heart of this shift is a growing divide between discovery and fulfillment. Fulfillment, the back-end work of logistics, shipping, and returns, offers razor-thin margins and little glamor.
Discovery, on the other hand, is where the magic happens, where consumers find new products, are inspired, and make decisions. “Everyone wants to be a discovery company,” and that’s where the land grab is happening.
AI’s Role: We’re Just Getting Started
We’re still early in the AI cycle, perhaps two years into what could be a 5–10 year journey. While there’s a flurry of experimentation right now, much of it is still surface-level. Tom Goodwin predicts we’ll soon see a wave of AI-first companies—businesses that rethink their very structure, economics, and consumer interactions around artificial intelligence.
But AI’s impact won’t be a simple takeover. Contrary to the belief that startups will automatically overtake incumbents, the retail veterans might actually hold the advantage. “It turns out Walmart still makes more profit through retail than Amazon does,” challenging the myth that old means obsolete.
The real question is: What’s the better starting point? Deep retail expertise, brand trust, and a robust supply chain? Or a team of technologists backed by venture capital, moving fast and breaking things? The truth is, the game is up for grabs, and no one should count themselves out.
The Emotional Side of Shopping
While AI can process billions of data points and optimize logistics, it can’t override human nature. At least, not yet. Despite the rise of comparison tools and product reviews, people don’t always make logical choices. In fact, emotion still rules much of the consumer experience. In categories like fashion, home, and lifestyle, where expression and identity matter, AI might support decisions, but it won’t replace the emotional pull. Whether it’s buying copper saucepans or designer sneakers, sometimes the joy is in the friction: the discovery, the hunt, the feeling.
“We’re not very good with transparency. We like a bit of emotion. We like making slightly compelling personal choices.”
Think Like You Have a Million Interns
This duality presents a challenge: retailers must cater to two very different types of customer journeys. Some shoppers want it fast and easy. Others want to wander, research, and connect emotionally.
“You have to play both parts of the barbell.” Streamline discovery and checkout for most shoppers, but also leave room for friction, curiosity, and storytelling. Brands that strike that balance will be the ones who win.
One of the most compelling metaphors from the conversation is the idea of AI as infinite human capital. Imagine if you had a million interns at your disposal, how would that change your business?
Last year, those AI interns might have been “enthusiastic 14-year-olds.” This year, they’re more like 18-year-olds. In a few years, they’ll resemble PhD students. Not perfect, not always right, but evolving fast, and opening up entirely new ways of thinking about productivity, creativity, and business design.
Retailers must stop asking how to use AI just to solve problems. Instead, they should ask: How does AI change human behavior? How does it shift consumer expectations? What new business models are possible now that barriers to entry have collapsed?
Human Capital, Rediscovered
Ironically, the more powerful technology becomes, the more valuable our uniquely human traits become. “The more people act like robots, the less helpful people are.” Creativity, imagination, emotional intelligence, these will be the most important skills in an AI-enabled future.
Retail is entering a new age, not just of tools and automation, but of rethinking the why behind consumer decisions. It’s not just about converting traffic, it’s about connecting with people. And that means the future belongs to brands that understand both the power of AI and the enduring power of emotion.