Technology
Retailers bet on AI for customer experience, ‘smart’ shopping
Retailers are accelerating their AI strategies to address the challenge of cautious consumer spending. Executives from companies like Ulta Beauty, Gap, Dollar General, and Kohl's shared applications of AI in supply chain, customer service, search discovery, and internal operations during earnings calls. Experts at Bain & Company noted that most companies are not pursuing comprehensive transformation but rather focusing on optimizing specific areas. Consumers will see more AI-driven personalized shopping experiences, though they may not notice the underlying technology.
The hidden cost of your fragmented CX stack
A Metrigy study shows that 38% of consumers stop working with a company after a single bad experience. To meet high expectations, businesses are adopting various AI customer service tools, but tool stacking leads to system fragmentation, data silos, and inconsistent experiences. Based on a GoTo blog post, this article systematically outlines the hidden costs of fragmented CX—from the 'swivel chair effect' to security vulnerabilities and obstacles to future scaling—and emphasizes that integrating all channels on a unified platform and enabling AI to collaborate across touchpoints is key to building long-term customer loyalty.
Ratings and reviews edge out deals when it comes to online purchasing decisions
A global survey released by Syndigo on Wednesday shows that ratings and reviews (53%) have surpassed discounts (49%) as the top factor in consumers' online purchase decisions, with product descriptions following closely (52%). An Info-Tech research director noted that accurate product information and reviews reduce uncertainty, and AI search tools are heightening the importance of information accuracy.
Bank of America’s chatbot Erica continues to amplify digital engagement
Bank of America executives noted during the Q2 2026 earnings call that digital channels are strengthening customer interaction and driving consumption. Erica chatbot active users increased 23% year-over-year to 24.6 million, with digital sales share rising from 65% to 70%, highlighting digital engagement as a differentiating advantage.
3 factors diminish consumer trust in digital experiences
A recent survey covering more than 4,000 consumers reveals that brands fail to meet customer expectations in transparency, perceived intent, and human accountability in digital experiences. 95% of consumers expect brands to act in their best interests, but only 62% believe brands perform well in balancing customer and business priorities.
KeyBank modernizes its digital experience with customer relationships front and center
Emily Gessner, head of KeyBank's consumer digital business, stated that the bank is adopting a 'fast follower' stance, leveraging upcoming personalized insights features, a mobile-app-specific strategy, and AI assistant planning to address the industry inflection point facing regional banks. In the coming month, she will transition to lead the commercial digital business.
Sweetgreen’s turnaround hinges on hospitality. Can it balance the human and digital sides?
Facing pressure from a 12.8% decline in same-store sales, Sweetgreen is seeking a balance between digitalization and personalized service by strengthening service training, optimizing restaurant floor layouts, and adjusting the placement of self-order kiosks. Company executives emphasize that technology should support rather than replace human interaction, which is central to its transformation strategy.
Meet the automated cart builder used by Kroger and Wegmans
Since its founding in 2018, Cooklist has focused on developing AI-driven shopping assistants and now partners with major grocery retailers like Kroger and Wegmans to provide automated shopping cart construction services. This technology covers over 700 stores and plans for further expansion.
Chewy’s Autoship subscription grows, offering reliability and repeat sales
Chewy's Autoship subscription service performed strongly in Q1 FY2026, with sales growing over 10% year-over-year, far exceeding the company's overall net sales growth of 7.7%, and accounting for 84.4% of total quarterly net sales. CEO Sumit Singh noted that subscription investments drive repeat purchases and incremental sales, boosting net sales per active customer. Despite a weak consumer environment, the company still added nearly 200,000 net new customers, bringing total active customers to 21.5 million. The Chewy+ paid membership program currently has a neutral impact on company performance, and the company is closely evaluating its results. Analysts caution that if the economy continues to weaken, consumers may cut back on subscription services, but Chewy remains optimistic about growth opportunities.
Costco’s digital personalization effort drives $500M in digital sales
During its Q3 fiscal 2026 earnings call, Costco stated that personalized product recommendation carousels contributed nearly $500 million in digital sales, with conversion rates three times the norm. The company also faced the challenge of slightly lower online membership renewal rates, but mitigated the impact through targeted strategies.