Retail Tech Moves Fast, and So Should You

As we settle into the second half of 2025, the retail sector is navigating a complex convergence of artificial intelligence, automation, and evolving customer expectations. The first half of 2025 underscored a pivotal shift in retail technology. Omnichannel growth, experiential formats, AI copilots, and RFID are no longer emerging trends; they're strategic imperatives shaping the industry’s trajectory.

With global retail IT investment projected at approximately $275 billion in 2025, the question isn't whether to invest, but how to direct capital toward initiatives that drive sustainable advantage.

Staying ahead of the curve and making the right investments will be the difference between being a "trendsetter" and "one who follows."

The Rise of AI Copilots for Store Associates and Back-End Ops

AI copilots can help store associates work more efficiently, quickly introducing new products to shoppers, offering personalized recommendations, and streamlining tasks. AI copilots are not a replacement strategy; they're a force multiplier. By augmenting associates, copilots unlock productivity, elevate service, and create operational resilience.

The technology can provide real-time product information as well as inventory status updates and enable customer preferences to deliver a more tailored experience. Implementing copilots lifts the friction from time-consuming tasks such as locating items and checking stock, and they can ensure seamless execution for training on the job.

Similarly, AI copilots streamline inventory management and the supply chain, as well as assist the workforce with scheduling, demand forecasting and even loss prevention by analyzing patterns in real time. AI copilots can be integrated with retail solutions such as point of sale (POS). As a result, retailers can improve operational efficiency and focus on other areas such as customer engagement, value addition, and overall shopping experience. This not only drives immediate sales but also builds stronger, long-term customer loyalty.

Predictive Analytics is Changing Promotions and Pricing in Real Time

AI-powered dynamic pricing in retail uses advanced algorithms and machine learning to process vast amounts of data, enabling retailers to adjust prices in real time based on demand, competitor activity, and customer behavior. By continuously analyzing these factors, retailers can react instantly to market shifts and emerging consumer trends, driving sales, margins and customer satisfaction.

Predictive analytics enables retailers to benchmark competitor pricing and stay competitive in real time. To remain competitive, retailers can optimize their margins — especially in e-commerce and omnichannel environments.

Consumer segmentation is essential for relating to customers and maximizing sales. Predictive models can analyze customers, placing them into target segments based on the likelihood of responding to sales offers and what each consumer prefers, ultimately boosting sales. Similarly, the consumer will be recognized and the shopping journey can be tailored based on their shopping history, improving their experience and increasing the likelihood of them purchasing and becoming repeat buyers.

Predictive analysis is utilized to anticipate when demand will spike — e.g., when there’s an expected quiet period, which is particularly useful for when it comes to seasonal sales. Promotional strategies can then be adjusted accordingly. This will reduce overstock and improve profitability. Overall, retailers can adopt more strategic pricing by leveraging precision, where timing and relevance are the drivers for success.

What’s Working and What to Double Down On

Brands are under pressure to implement the correct technology solution into their operations. To get it right, it’s crucial to understand what’s working. With continuous advancements in retail technology, it can be overwhelming for brands when it comes to implementing the correct solutions. To ensure the solutions deployed are delivering optimal return on investment and achieving operational efficiency, retailers must select a proven partner that provides innovative solutions.

Automation isn't convenience, it's competitive necessity. RFID-enabled processes eliminate inefficiencies, accelerate checkout, and free associates to focus on value-added engagement.

Implementing secure customer relationship management platforms that utilize data to unify customer and operational data helps brands make better decisions and deliver more personalized suggestions. AI-driven insights are particularly useful for demand forecasting, pricing and consumer insights. Vast amounts of data are being analyzed to optimize operations and personalize experiences.

Adopting AI for the sake of trend-chasing may generate buzz but rarely drives sales or loyalty. Technology partnerships must go beyond pilots and proofs of concept. Executives should demand scalable, integrated solutions that deliver measurable ROI and align with long-term strategy.

Looking Ahead

Retailers that want to succeed in the retail sector with technology evolving day by day should be able to not only keep up with trends but also anticipate what’s next. From AI copilots and back-end operations to predictive analysis, the tools are all there. However, it’s deploying solutions that deliver true value and avoiding what's just simply noise that matters most.

Amber Hovious is vice president of marketing and partnerships at Teamwork Commerce, a leading omnichannel solution provider.