AI Takes Center Stage at Retail's Biggest Trade Show
Key Points
- Holographic AI avatars, like Hypervsn's "Mike," engage shoppers as icebreakers at the trade show.
- Google unveils a protocol allowing AI assistants to purchase directly from retailers.
- Papa John’s integrates an AI chatbot that can auto‑fill orders and suggest items based on restrictions.
- New AI‑focused search acronyms (AEO, GEO, GSO) emerge as retailers adapt to chat‑based discovery.
- Solum and SpaceVision demo in‑store cameras that assign IDs and track shopper attention for personalized offers.
- Privacy concerns arise over rapid metadata capture, especially among European consumers.
- Equapack emphasizes tactile packaging design and rejects AI for product visualization.
- The overall retail landscape shows a blend of enthusiasm for AI and caution about its implications.
At the National Retail Federation’s annual trade show, retailers and tech firms showcased a wave of artificial‑intelligence tools, from holographic chat agents powered by large language models to AI‑driven shopper tracking and chatbot ordering. Companies highlighted new protocols that let shoppers buy directly through AI assistants, while others warned of privacy concerns as cameras capture shopper behavior. Amid the hype, some exhibitors, like a packaging specialist, deliberately avoided AI, emphasizing tactile design over digital gimmicks.
AI‑Powered Experiences on the Show Floor
Visitors to the National Retail Federation’s trade show encountered a variety of artificial‑intelligence demonstrations. Hypervsn displayed a holographic figure named Mike, a ChatGPT‑powered avatar that answered audience questions after a short delay. Nearby, a gnome‑like hologram responded in rhyming verse. Retail clients said they request non‑human holographic characters to keep a distance from fears that AI will replace jobs.
New Shopping Protocols and Chatbot Integration
Google announced an open‑source Universal Commerce Protocol that enables AI agents to communicate directly with retailers, allowing shoppers to purchase items from stores without visiting the retailer’s website. The company also said retailers could set up discounts for shoppers browsing in AI mode. Papa John’s demonstrated a chatbot that can auto‑fill previous orders, suggest items based on dietary restrictions, and even accept a group photo to determine party size.
Expanding AI Jargon and Services
Retailers are coining new acronyms such as answer engine optimization, generative engine optimization, and generative search optimization to describe AI‑focused search strategies. Fabric offers a monitoring service that tracks how often a brand appears in AI chat platforms, charging businesses for access to that data.
In‑Store Tracking and Privacy Concerns
Solum, using technology from SpaceVision, demonstrated a system that assigns a numeric ID to each shopper, captures facial metadata, and records how long a shopper watches a digital display. The system can trigger personalized offers based on that engagement. An employee explained that video footage is deleted within a millisecond, leaving only metadata. The staffer acknowledged that European shoppers might feel uneasy about such surveillance, while noting cultural differences in acceptance.
A Counterpoint: Packaging Without AI
Equapack’s booth stood out by focusing on physical packaging rather than digital solutions. Founder Eran Rothschild said the company does not use AI for design, preferring tactile samples and reusable, luxurious bags that enhance the consumer’s experience. He argued that AI visualization does not capture the true nature of the product.
Overall Landscape
The trade show illustrated how AI is infiltrating nearly every aspect of retail, from front‑end shopper interactions to back‑end inventory and logistics. While many vendors tout AI as a path to greater efficiency and personalized experiences, concerns about data privacy and the human touch remain prominent. Some exhibitors embrace the technology wholeheartedly, whereas others deliberately steer clear, highlighting a split in industry attitudes toward AI’s role in the future of commerce.