Retailers Are Still Looking For AI That Works in Production

By

Speakers:

Matt Mallouk

VP, Partner Relationships
​​​​​​​Rithum

John Fobare

VP, Client Partnerships
​​​​​​​Rithum

At NRF 2026, retailers focused on cutting through the hype and looking at the practical use of AI. Matt Mallouk, Vice President of Partner Relationships at Rithum, said he heard from many retailers that they still run into data mapping, quality, or structure issues that slow AI adoption and results.


John Fobare, Vice President of Client Partnerships at Rithum, heard a related theme from the partnerships side: retailers want smoother execution across the shopping process. And they see AI as the silver bullet. “There needs to be more orchestration in the process to ensure a smoother experience for the consumer,” Fobare said.


Those issues surfaced even when the conversation started with search, customer experience, or loyalty. Teams can’t deliver consistent answers, recommendations, or experiences when the underlying product data doesn’t line up.


Retailers don’t need more AI demos. They need AI that survives real data, real workflows, and real customers.

Where AI Is Being Applied First

The most interesting examples aimed beyond product facts. “Instead of product information about a paintbrush, AI is enabling a more contextual experience to support the entire painting project, with supply lists, or estimates on how much paint might be needed,” Mallouk said.


That same direction came through in how retailers talked about discovery where AI guides the consumer. “AI was talked about as the next evolution of search, moving from keywords to contextually aware problem solving,” Mallouk said.


Retailers also discussed AI in brand terms. Mallouk said they want it to support the brand promise and solve real customer problems. He heard two approaches: some retailers want the buying experience to stay in their own channels, while others will support agent-led purchasing where customers already shop, as long as the brand experience stays consistent. “Fully autonomous AI agents making purchases for customers is getting too much hype. Part of shopping is a human experience and always will be,” Mallouk said.

What Has to Change for Scale

Fobare said agentic commerce still has more conversation than transactions. He expects activity to pick up as protocols mature and partners work through contracting, integration cycles, and data quality.


That’s part of why NRF 2026 felt busier than previous years. “There were several new developments announced at NRF with Google’s new protocol, and other agentic developments—it was a lot more action packed,” Mallouk said. Fobare highlighted Google’s Universal Commerce Protocol (UCP), noting backing from major retailers including Walmart, Target, Chewy, and Home Depot. He described the aim as standardizing AI interactions so they “feel like a standard buying journey for both the consumer and retailer/brand.”


Fobare said retailers were blunt about what they’ll keep in their stack. “If the platforms simply don’t plug and play then they won’t fit into their future.”


MAR 2025