How AI is Reshaping Cybersecurity and the Role of the Retail CISO

Artificial intelligence is rapidly transforming cybersecurity, and retail is feeling the impact. As retailers adopt AI to personalize customer experiences, optimize supply chains, and streamline operations, the cybersecurity stakes have never been higher. For chief information security officers (CISOs), AI is more than a defensive tool — it’s a strategic asset that reshapes how organizations think about data governance, workforce planning, and leadership.

Retailers operate in fast-paced, high-volume environments with sprawling digital footprints, from e-commerce platforms and mobile apps to point-of-sale systems and third-party logistics networks. AI has become essential in defending these complex ecosystems. It enables real-time threat detection across customer-facing channels, internal networks, and cloud infrastructure, identifying anomalies and prioritizing risks faster than traditional systems ever could.

Yet attackers are also evolving. CISOs report a rise in AI-powered threats, including deepfakes and impersonation tactics targeting customer service channels and loyalty programs. In response, security teams are exploring how agentic AI can reduce operational overhead. “Twenty people to do SecOps, but can you do it with two?” one CISO recently asked, pointing to asset discovery and fraud detection as areas where AI can augment human oversight and scale response capabilities.

Despite these advances, AI’s impact on core risk functions remains nuanced. As one CISO explained, “Risk is boutique to a particular business,” and while AI brings visibility, there’s still significant work to be done in measuring risk, especially in retail environments where collusion, insider threats, and supply chain vulnerabilities are difficult to quantify and often context-specific.

Retail cybersecurity teams are under pressure to do more with less, particularly during seasonal surges and promotional cycles. AI helps automate routine tasks like log parsing, alert triage, and patch prioritization, but it’s also reshaping workforce strategy. One CISO cautioned that while junior-level staff may be replaced by AI tools, “that also guts my pipeline of senior staff.” This concern is especially acute in retail, where institutional knowledge of systems, vendors and compliance requirements is critical to long-term resilience.

Upskilling initiatives must now focus on areas such as AI model validation, adversarial testing, and fraud analytics. At the same time, fostering collaboration between cybersecurity, data science, and customer experience teams is essential to ensure AI tools are deployed responsibly and effectively. Another CISO emphasized the need to rethink operational models: “We’re delving into how we can leverage AI to protect against all attacks.” In retail, this means using AI to monitor omnichannel transactions, detect synthetic identities, and flag unusual purchasing behavior — while ensuring human oversight remains central to judgment calls.

Retailers also handle enormous volumes of personally identifiable information (PII), payment data, and behavioral insights. As AI models ingest this data to power personalization and automation, CISOs must ensure privacy, compliance and ethical standards are upheld. One CISO stressed the importance of locking down AI tools that may call out to external services, especially free platforms used by marketing or customer support teams. Their organization implemented a software review board to approve tools and prevent system duplication, while tightening DNS and network traffic rules to reduce data leakage.

Another CISO observed that AI is “forcing people to have a data governance conversation.” While boards are eager to adopt AI to drive innovation, operational use cases are still being defined, and compliance concerns, especially around PII and consumer consent, are surfacing. “Are we allowed to use people’s PII in this manner?” they asked, noting that some tools may be “overly permissive” in their current form.

To lead effectively in this AI-augmented era, retail CISOs need a blend of technical and interpersonal skills. On the technical side, expertise in AI governance, fraud modeling, and cloud-native architectures is essential. Familiarity with machine learning concepts, data pipelines, and automation frameworks enables CISOs to evaluate and manage AI-driven tools across customer-facing and back-office systems. Equally important are soft skills. CISOs must communicate complex risks in business terms, influence cross-functional stakeholders — from merchandising to marketing — and foster trust at the board level. Strategic thinking, emotional intelligence, and adaptability are critical as the role shifts from reactive defense to proactive risk leadership. The ability to translate technical insights into actionable narratives is now a core competency.

Jason Henninger is managing director and a practice leader in Heller’s Product & Engineering Group and Cybersecurity practice.