The retail industry stands at the cusp of a transformative era, with artificial intelligence (AI) poised to potentially redefine how commerce operates. This, according to an update from CB Insights.
As autonomous shopping tools and agentic payment solutions gain traction, retailers are racing to integrate AI into their operations to stay competitive.
According to CB Insights’ Retail AI Readiness Index, published on July 3, 2025, the world’s largest retailers are benchmarked on their AI execution and innovation, revealing a landscape where strategic partnerships, proprietary infrastructure, and operational efficiency are key to leading the charge.
The Retail AI Readiness Index evaluates major retailers based on their ability to execute AI projects and innovate through research, development, and investments.
While tech initiatives like OpenAI have introduced agentic tools such as Operator, and payment leaders like Visa, Mastercard, and PayPal are developing solutions for autonomous payments, retailers are focusing on foundational AI integration.
From search personalization to supply chain automation, AI is being embedded across the value chain to enhance customer experiences, protect first-party data, and control the pace of innovation.
However, no retailer has yet launched an autonomous shopping agent capable of making purchases on behalf of customers, indicating that agentic commerce remains a future goal.
Leading the AI readiness ranking is Amazon, which leverages its proprietary infrastructure—Bedrock and custom chips—to accelerate AI deployment in warehousing, logistics, and delivery.
By owning the full stack, from hardware to end-user applications, Amazon ensures its AI advancements compound across business units, giving it a significant edge.
Following closely are Walmart, JD.com, and Coupang, which are building retail-specific AI toolkits.
Walmart, for instance, has developed proprietary large language models (LLMs) and introduced AI assistants for merchants, associates, and shoppers, alongside tools for virtual fitting and shelf condition tracking.
JD.com and Coupang are innovating with digital human livestream hosts and generative AI translation, enhancing their merchandising capabilities.
These retailers demonstrate that in-house AI development is a critical differentiator in the race for readiness.
For retailers outside the top tier, partnerships with big tech and AI leaders are proving essential.
Lowe’s, for example, has collaborated with OpenAI to deploy machine learning for pricing and supply chain management.
In 2024, Lowe’s introduced a GPT-based “Product Expert” on ChatGPT for home improvement queries, followed by two AI assistants in 2025—one for associates and one for shoppers.
Similarly, The Home Depot has partnered with Google Cloud for a decade, using Google’s AI to optimize inventory management, supply chain efficiency, and customer search experiences.
These partnerships highlight that external expertise and infrastructure are vital for most retailers to scale AI adoption effectively.
AI’s impact on retail is already evident in merchandising, where generative AI tools are driving personalization and efficiency.
Retailers are deploying genAI for search, merchant tools, inventory forecasting, and delivery route optimization, both online and in-store.
These applications streamline operations and enhance customer engagement, but the absence of agentic commerce solutions suggests retailers are prioritizing operational improvements over fully autonomous systems.
As NVIDIA’s 2025 report notes, 93% of retailers plan to increase AI investment this year, with generative AI reshaping marketing through smarter content and targeting.
The Retail AI Readiness Index underscores a clear divide: retailers with proprietary AI infrastructure lead, while others rely on partnerships to bridge the gap.
As AI continues to evolve, the ability to integrate it across operations while maintaining control over data and innovation will determine who thrives in the autonomous commerce era.
For now, retail giants are laying the groundwork, ensuring they’re ready to shape—and dominate—the AI-driven future of digital commerce.