The Future of AI in Retail: Trends to Watch

Introduction

The way we shop is being rewritten—line by line, algorithm by algorithm. Whether you’re scrolling on your phone, walking into a smart store, or simply unlocking your screen, AI is no longer the future of retail—it’s the framework. But what’s next? What are the AI in retail trends that will truly define the next chapter of commerce?

Let’s be real: most retail tech trends get hyped, fizzle, and fade. But AI? It's different. It’s learning, adapting, embedding itself deeper into how we discover, compare, buy—and feel about—products. And in this blog, we’re not just listing trends. We’re unpacking the ones that actually matter for retailers, marketers, tech builders, and everyday shoppers alike.

So, if the AI in Retail revolution interests you (or keeps you up at night), this is your 2025 guide.

For a broader view of how AI is transforming the retail world, be sure to check out our in-depth AI in Retail pillar page here →

1. Generative AI Goes from Back Office to Front Row

Generative AI isn’t just writing product descriptions anymore—it’s designing experiences. What started as an automation tool for content production has now become a creative partner for brands. In 2025, we’re seeing retailers deploy GenAI to:

• Create shoppable lookbooks and moodboards (yes, Glance AI is doing this on lock screens!)
• Generate personalized ads and promotions in real time
• Build micro-campaigns for regional audiences without a huge content team

Think about that for a second: your favorite fashion brand could run 1,000 localized campaigns simultaneously—each one unique, AI-built, and visually consistent.

This shift from static to dynamic content unlocks hyper-relevant experiences, especially in fast fashion, home décor, and cosmetics. And as generative design tools mature, we’ll see AI shape product packaging, visual merchandising, and even storefronts.

Retailers who treat GenAI as a gimmick will fall behind. Those who embrace it as a creative engine? They'll win hearts and wallets.

2. Visual Discovery Will Crush the Search Bar

Raise your hand if you've ever struggled to describe the thing you were looking for. "That blue hoodie from Instagram that kind of looked like the one Ranveer Singh wore in that ad." Yeah, not exactly Google-friendly.

This is why visual search and discovery are exploding. AI now enables shoppers to:

• Upload a photo and instantly find similar products
• Use AR overlays to compare items side-by-side
• Scroll through curated style feeds that look like their tastes

Platforms like Pinterest and Myntra are leading the charge—but Glance AI is innovating in a completely new way: by showing users AI-generated looks on their lock screen, complete with smart product tags. You don’t have to search anymore—discovery finds you.

In 2025, we’re moving toward a retail world that’s visual-first, not keyword-first. If your brand isn’t yet optimizing for visual cues, image recognition, and camera commerce… well, you might be invisible to the next-gen shopper.

3. AI Will Power Context-Aware Personalization

“People who bought this also bought…” was fine for 2015. In 2025, it’s lazy.

The new era of personalization is context-aware. AI will no longer just look at what you bought—but why, when, and how you felt about it. It will consider:

• Your location and local weather
• Time of day and shopping history
• Behavioral shifts and emotional tone (yes, AI can now read sentiment)

Let’s say you’re scrolling late at night in Mumbai after watching a fashion reel. Glance AI could suggest loungewear styled specifically for your preferences—on your lock screen. Not in an app. Not after a login. Right where your attention naturally lives.

This moment-based personalization will redefine conversion strategies. It’s not about blasting offers—it’s about timing the perfect nudge, and AI will handle that far better than any marketer can.

4. AI-Powered Try-Ons Will Be the New Fitting Room

Let’s be honest: trying on clothes in a store is a hassle. And online shopping? It's a gamble if you don’t know the fit. That’s where AI-powered virtual try-ons are changing the game.

In 2025, leading retailers are integrating:

• AR try-on for eyewear, makeup, and shoes
• AI fit prediction tools that analyze your body type and past returns
• Style simulation using AI-generated avatars (based on your selfie, of course)

Glance AI is at the cutting edge of this movement, with its upcoming try-on feature embedded in its look discovery flow. Users will be able to visualize how recommended outfits look on them—before even opening a brand’s website.

This trend reduces returns, increases confidence, and most importantly—makes shopping fun again. And if it works on lock screens? Imagine the impact on conversion.

5. AI Will Make Retail More Ethical and Efficient

It’s easy to view AI as just a tech upgrade. But it’s becoming a moral compass too.

Retailers are under pressure to:

• Reduce waste and overproduction
• Build more sustainable supply chains
• Avoid discriminatory pricing and biased recommendations

AI can help—if implemented responsibly. With the right training data and transparency, AI can:

• Forecast demand accurately to reduce unsold inventory
• Promote eco-conscious products
• Ensure fair personalization across diverse audiences

This matters more than ever in India, where value-driven Gen Z consumers care about both price and principles. Platforms like Glance, by presenting curated, responsible product suggestions passively, offer a new way to balance commerce with conscience.

The trend? AI that’s not just smart, but right.

6. The Line Between Content and Commerce Will Blur

Why do we scroll Instagram or YouTube Shorts? Not to shop—but we often do anyway. That’s the magic of content-driven commerce—and AI is the invisible engine behind it.

Expect to see more:

• Shoppable videos powered by real-time AI overlays
• Influencer-style lookbooks generated without human models
• Interactive storytelling formats embedded into mobile UX

This is where Glance AI stands out again. Its magazine-like layout doesn’t feel like a store—it feels like content. Users engage with it because it’s visually rich, not because they’re planning to buy. And that’s the secret sauce. AI shifts intent from passive to active, without pressure.

In this world, the homepage is dead. Your content feed is your storefront. And if your AI can’t make that shift feel seamless? You’re out of the loop.

7. Indian Retail Will Set Global AI Commerce Standards

Let’s wrap this truth bomb: India is the most important AI retail lab in the world right now.

Why?

• 90% mobile-first user base
• Multilingual, multicultural, price-sensitive audiences
• Exploding D2C ecosystem with tech-native consumers

This makes India the ultimate pressure cooker for building scalable, intelligent, and inclusive retail AI. And platforms like Glance AI, which serve personalized, visual-first shopping experiences to the lock screens of Indian users, aren’t just following trends—they're inventing them.

The future of AI in retail isn’t happening in Silicon Valley boardrooms. It’s unfolding on the screens of tier-2 cities, WhatsApp carts, and lockscreen scrolls—right here in India.

If you're building for this market, you’re building for the world.

Final Thoughts: Watch the Trend—or Set It?

AI in retail trends aren’t just tech upgrades. They’re strategic pivots. They decide:

• Who earns attention
• Who gets remembered
• Who wins

Whether you’re a brand, a developer, or a curious shopper—the trends we’ve explored today are the blueprint for retail 3.0.

Want the complete deep dive into AI’s impact on retail?
Don’t miss our full AI in Retail Pillar Page — your definitive guide to what’s already happening, and what’s next.

FAQs

1. What is the future trend in AI for retail?
AI in retail is moving towards hyper-personalization, predictive analytics, virtual try-ons, and autonomous stores. Expect deeper integration of GenAI for smarter product discovery, real-time customer support, and AI-driven inventory management.

2. How will AI affect the retail industry in 5 years from now?
In five years, AI will transform retail by automating operations, enhancing customer experiences with real-time personalization, optimizing supply chains, and enabling data-driven decision-making at every touchpoint.

3. What is the future of AI in sales?
AI will revolutionize sales by predicting customer intent, automating lead scoring, generating personalized pitches, and enabling virtual sales assistants—driving efficiency and boosting conversion rates across channels.

4. What will be the future of AI in coming future?
The future of AI will be marked by greater contextual understanding, real-time responsiveness, and ethical advancements. As it becomes more embedded in everyday tools, AI will act less like software and more like a strategic co-pilot across industries.