From Ulta Beauty’s new marketplace to Gap’s creator platform, here’s what the eight most interesting retailers from October have been up to, as ranked on our “Behind the Numbers” podcast.
Tomorrow’s grocery shoppers will expect AI tools that anticipate their needs, faster checkouts, and consistent pricing across channels. In this new era, convenience and technology will shape behavior, but value and trust will remain the deciding factors.
OpenAI signed a seven-year, $38 billion cloud compute deal with Amazon Web Services (AWS), its first partnership with the cloud market leader. The development effectively ended the startup’s exclusive reliance on Microsoft, its primary backer, per CNBC. OpenAI will use existing AWS data centers, and Amazon will build dedicated infrastructure for OpenAI as part of the ChatGPT maker’s expansion. While hyperscalers like AWS, Microsoft, and Google race to secure workloads, costs for training and inference are expected to decline. For brands, this means reduced outage risks and increased options for deploying AI-driven creative, analytics, and automation systems at scale.
AI is reshaping the future of work at agencies, from reducing junior roles to cutting down on hiring altogether. Nearly all (91%) of US senior agency leaders expect AI to reduce agency headcounts, per Sunup’s AI’s Effect on the Marketing Industry report. Over half (57%) of agencies have slowed or paused entry-level hiring. To maintain value in the AI era, agencies should protect and cultivate talent pipelines and use AI to deepen offerings like audience insights and personalized campaign plans, which automation alone can’t replicate.
When it comes to AI investment, Google CEO Sundar Pichai's mantra that the risk is underspending, not overspending, seems to be holding true at Meta. It forecast roughly $600 billion on AI-related capital expenditure over the next three years, but investors are questioning whether that philosophy has limits. Meta’s heavy focus on AI could aid its ad offerings, especially personalization options and its AI-powered ad suite. At the same time, overspending could lead to uneven focus that leaves other ventures—including its cash-burning Reality Labs and plateauing interest in Facebook—vulnerable.
Meta, Google, and Microsoft are spending at historic rates in the race to secure AI dominance. Each posted record quarterly earnings last week—and warned that even higher capital expenditures are an imperative for growth, per Wired. For marketers, the AI buildout presents both an opportunity and a cautionary tale. As Big Tech chases scale, brands must chase substance—using AI not for hype, but for measurable value today, not in the future. AI’s future isn’t guaranteed by capital—it’s earned through trust, differentiation, and adaptability. Brands that master those traits will thrive no matter how the infrastructure race unfolds.
Retail is on the brink of a digital sea change as agentic commerce slowly makes its way onto consumer-facing platforms.
Walmart unveiled a series of AI-powered tools for its app to help customers with their holiday shopping. The new features, which include an in-store savings function and AI-generated audio summaries, are meant to make Walmart’s app more useful for in-store shoppers and to simplify discovery and purchasing for customers who prefer to transact online. Retailers should follow Walmart’s lead and use AI to make it easier for customers to surface deals and quickly find what they’re looking for, whether in-store or online.
WPP cut its full-year outlook after Q3 organic revenue fell 5.9% to £2.46 billion, its steepest quarterly decline since 2020. New CEO Cindy Rose said the company “hasn’t gone fast enough” to meet client needs and outlined a turnaround focused on AI, operational efficiency, and simplifying its agency network. WPP’s slump reflects broader challenges facing holding groups in the AI era: proving value through speed, integration, and measurable results as brands increasingly turn to self-serve, platform-driven ad solutions.
Healthcare organizations are implementing commercial AI solutions at more than twice the rate (2.2x) of the broader US economy, according to a recent report from Menlo Ventures. Hospitals and health systems dominate AI adoption in healthcare, accounting for 75% of the spending total. The greatest current demand for AI in healthcare is among provider organizations that must improve doctors’ workflows and cut admin waste. AI startups and incumbents will compete by delivering revenue-driving tools that go beyond note transcription and earning physician trust through models that enhance diagnostic accuracy.
Fraudulent streaming is siphoning royalties from human artists, complicating ad targeting for marketers, and leading consumers to listen to AI-generated music without their knowledge. Fraudulent genAI content can degrade users’ streaming experience and make it harder for advertisers to accurately plan campaigns since they may not know what user data is legitimate, Inna Vasilyeva said. With data quality and trust serving as major elements of campaign deployment and optimization, brands must demand transparency from streaming platforms and prioritize verified ad inventory.
Amazon beat expectations in Q3, helped by an extended Prime Day sale, expanded rural access to same- and next-day delivery, and healthy cloud and advertising growth. The company's AI investments are taking center stage as the company looks to improve efficiency, boost engagement, and keep third-party AI agents at bay. From a retail standpoint, Amazon is on firm footing. The retailer’s ability to offer unparalleled convenience, wide selection, and Prime membership perks are enabling it to gain share in an uncertain environment.
A global Azure and 365 outage hours before earnings revealed the fragility of Microsoft's dominance, briefly disrupting apps and websites worldwide. But its latest earnings demonstrated its unmatched lead in enterprise AI. Azure and other cloud services jumped 40%, powering Microsoft Cloud’s 26% revenue surge to $49.1 billion. Despite the hiccup, Microsoft’s results confirmed AI’s full integration into its business model, with Copilot and Azure fueling recurring cloud consumption—and turning productivity into predictable, high-margin growth.
Eli Lilly is partnering with chipmaker NVIDIA to build the pharma industry’s most powerful supercomputer. Lily claims it will be the largest AI factory owned by a pharma company and will be up and running in January 2026. Lilly’s partnership with NVIDIA highlights the shift pharma companies are making to rely on tech firms who have the computing power and AI expertise pharma needs to stay competitive.
Samsung Ads and AdGood have launched a partnership enabling nonprofits to advertise on connected TV for the first time at scale. Samsung will donate ad inventory from its free streaming service, Samsung TV Plus, to AdGood’s nonprofit exchange, allowing mission-driven organizations to reach viewers across premium streaming environments. The initiative reflects a broader shift in the CTV ecosystem—where unused inventory and automation are being repurposed to advance social impact, equity, and accessibility in digital media.
OpenAI completed its public benefit corporation (PBC) restructuring, reflecting how the AI industry has matured since ChatGPT first launched. The company retains a nonprofit arm—the OpenAI Foundation—that holds a $130 billion equity stake in the OpenAI Group PBC for-profit arm. Prepare for rapid evolution of AI capabilities, faster product cycles, and more aggressive scaling of tools like ChatGPT Enterprise, Sora, and Pulse as OpenAI tests which offerings can grow into major revenue drivers.
A growing cohort of companies, including Next PR, Parcel Perform, and Geostar, is helping brands optimize their generative engine presence, ensuring that content surfaces in queries from consumers seeking recommendations and new products. Marketers should consider their brands’ strategic goals—whether it’s driving conversions or boosting visibility of web content—and identify the GEO partners that best align with them. As genAI tools become more mainstream for consumer discovery, proactive optimization is key to stay relevant and manage reputation in AI outputs.
Amid pressure to establish better child safety guardrails in the AI industry, Character AI will block users under 18 from chatting with bots on its platform. Starting November 25, minors will only be able to generate photos and images with safety limits in place and review prior chats. As regulatory and safety concerns rise, advertisers face greater scrutiny when looking to reach younger audiences. CMOs should assess brand alignment with AI platforms and, on platforms that have the potential to pose a safety risk for children, shift efforts to target adults users.