A couple of weeks ago the MRA Government Affairs team traveled to Chicago for the annual conference of the Council of State Retail Associations. It’s the time of year when our counterparts from all over the country get together to talk retail and workshop legislative initiatives that we should advocate for and defend against.
As you might have guessed, the trending topic this year was Artificial Intelligence (AI). AI is no longer a futuristic concept—it’s here, reshaping industries in real time. For retailers, AI represents a powerful tool to remain competitive, improve customer experience, and streamline operations.
At its core, AI helps retailers make better decisions faster. From forecasting demand to optimizing pricing, AI systems can analyze massive amounts of data and identify trends that would be impossible to spot manually. Imagine predicting holiday sales with pinpoint accuracy or adjusting inventory based on shifting consumer behaviors. These insights give retailers the ability to stay ahead of market fluctuations and customer expectations.
Customer engagement is another area where AI is revolutionizing retail. Personalized recommendations, powered by AI, help shoppers discover products they are more likely to purchase. Chatbots and virtual assistants provide instant answers, guiding customers through their buying journey and improving satisfaction. The result? Stronger relationships with shoppers and higher conversion rates. However, these capabilities are attracting the attention of lawmakers, with some looking to curb the use of data, impacting loyalty programs and other rewards.
Of course, adopting AI requires thoughtful planning. Retailers should start small—perhaps with customer insights or targeted marketing—and grow from there. As AI technology becomes more accessible and affordable, the opportunity to leverage it grows, and MRA will be there to ensure that these systems remain available for our membership.
The bottom line is clear: AI isn’t just a trend; it’s a necessity. Retailers who embrace these tools will be better equipped to compete, adapt, and thrive in a marketplace that is moving quickly.