Artificial intelligence emerged as the dominant theme at the National Retail Federation’s annual conference, Retail’s Big Show, held in New York City from January 11-13, 2026. The event drew over 5,000 brands and featured prominent speakers including Walmart’s incoming CEO John Furner, Google CEO Sundar Pichai (who announced a new AI deal during the conference), and Fanatics CEO Michael Rubin.
Throughout the expo hall, “AI” and “agentic” appeared on nearly every banner and booth, with humanoid robots greeting attendees and digital drive-thru menu boards showcasing AI-powered capabilities. Major retailers like Walmart and Lowe’s have introduced their own AI shopping agents or partnered with platforms like Google’s Gemini and OpenAI’s ChatGPT, though these initiatives remain in early stages.
Customer service emerged as the primary driver behind retail AI adoption. Ralph Lauren’s chief branding and innovation officer, David Lauren, discussed the brand’s partnership with Microsoft to create Ask Ralph, a chatbot-style customer assistant powered by Microsoft’s AI. The tool functions like a styling assistant, suggesting clothing based on prompts such as specific occasions.
Despite the AI buzz, retail leaders emphasized maintaining fundamental business principles. Abercrombie & Fitch CEO Fran Horowitz advised young founders to keep basics top of mind while embracing innovation. A panel of Gen Z consultants from The Z Suite (ages 17-24) revealed that AI is currently most useful for bargain-hunting and basic customer service, but young consumers still crave traditional retail fundamentals: quality, customer service, and in-store experiences.
The Gen Z professionals, including a buyer, a global merchant for Calvin Klein, and a marketing associate, expressed that they want transparency about AI use, particularly regarding AI-generated models in advertisements. They’re willing to research products thoroughly, scouring platforms like Reddit for authentic reviews beyond influencer content. True Religion’s CMO Kristen D’Arcy noted that shoppers are becoming more discerning, craving authenticity in an AI-saturated content landscape. The conference revealed that while AI may be retail’s loudest trend for 2026, successful brands won’t abandon fundamental customer experience principles.
Key Quotes
It’s like having Ralph Lauren in your pocket
David Lauren, Ralph Lauren’s chief branding and innovation officer, described the Ask Ralph AI chatbot assistant at the conference. This quote illustrates how luxury brands are positioning AI tools as personalized styling assistants that replicate the expertise of brand founders, making high-end fashion advice accessible through Microsoft-powered AI technology.
AI may be the loudest trend, but that doesn’t mean brands should forget the basics
This observation from the conference reporter captures the central tension in retail’s AI transformation. Despite the overwhelming presence of AI technology at the event, industry leaders and Gen Z consumers alike emphasized that fundamental retail principles—quality products, authentic customer service, and genuine in-store experiences—remain essential for success.
Our Take
The National Retail Federation’s conference reveals a critical inflection point for AI in retail: widespread adoption is happening, but consumer expectations are evolving faster than the technology. The Gen Z insights are particularly telling—these digital natives aren’t blindly embracing AI; they’re demanding transparency and authenticity. This suggests that the next competitive battleground won’t be AI adoption itself, but how thoughtfully it’s implemented. Ralph Lauren’s Ask Ralph represents the ideal: AI that enhances brand identity rather than replacing it. The humanoid robots and AI-powered displays demonstrate technological capability, but the real story is more nuanced. Retailers must navigate between innovation and tradition, using AI to solve real problems like product discovery while preserving the irreplaceable human elements of retail. The emphasis on transparency about AI-generated content, particularly in advertising, signals that trust will be the currency that determines which AI implementations succeed. Brands that treat AI as a tool to amplify their core values, rather than a replacement for them, will likely emerge as winners.
Why This Matters
This coverage from Retail’s Big Show 2026 provides crucial insights into how AI is reshaping the retail industry at scale. With major players like Walmart, Google, and Ralph Lauren investing heavily in AI-powered customer service tools, we’re witnessing a fundamental transformation in how consumers interact with brands. The conference reveals that AI adoption in retail has moved from experimental to mainstream, with nearly every exhibitor showcasing AI capabilities.
However, the Gen Z panel findings are particularly significant: they indicate that AI alone won’t guarantee retail success. Young consumers demand transparency about AI use and still prioritize traditional values like quality and authentic human interaction when money is at stake. This suggests retailers must strike a delicate balance between technological innovation and human-centered service. The emphasis on customer service as AI’s primary application shows the industry is focusing on practical, value-adding implementations rather than AI for its own sake. For businesses, this signals that AI should enhance rather than replace the fundamental retail experience, and transparency about AI deployment will become a competitive differentiator.
Related Stories
- CEOs Express Insecurity About AI Strategy and Implementation
- Big Tech’s 2025 AI Plans: Meta, Apple, Tesla, Google Unveil Roadmap
- Business Leaders Share Top 3 AI Workforce Predictions for 2025
- Google Founders’ $511B Fortune Soars on AI Breakthrough Success
- PwC Hosts ‘Prompting Parties’ to Train Employees on AI Usage
Source: https://www.businessinsider.com/what-retail-leaders-said-ai-more-at-nrf-big-show-2026-1