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Artificial Intelligence

Retailers faced a challenging year as economic factors, new technologies, and changing consumer behaviors reshaped the landscape. Here are our top five stories from this past year and what they meant to a tumultuous industry.

Regulatory crackdowns, digital dominance, and AI adoption forced marketers to rethink strategy, spend, and compliance across the year.

Most retailers are still in the early stages of genAI adoption; while results are limited thus far, companies are bullish about opportunities for efficiency gains and improved CX.

The Trade Desk is laying off fewer than 1% of its 3,900 employees, a small reduction that nonetheless comes at a pivotal competitive moment. The cuts follow notable departures and last year’s major reorganization, as TTD prepares for an AI-first future centered on Kokai. Agencies say Amazon’s DSP is winning share with lower fees and strong performance, pushing TTD to negotiate pricing and offer service incentives once considered off-limits. At the same time, scrutiny over transparency, reseller accountability, and TTD’s OpenAds wrapper is rising. For marketers, the moves signal a company recalibrating—not retreating—as it works to steady growth heading into 2026.

The insurance industry has been an early mover on AI adoption, outpacing all industries but one among those studied in a BCG survey. But progress has stalled at the pilot stage: the majority of insurers (67%) are testing genAI programs, while only 7% have scaled them. Insurers should modernize their data architecture and tie their technology investments to business outcomes. Opportunities abound, from claims automation to embedded distribution.

Human oversight, GEO, and distribution knowledge keep agencies relevant—even as AI becomes the decade’s defining disruptor.

Firms that train workers and rethink roles—not just slash jobs—are best positioned to maximize AI adoption.

In 2025, OpenAI shifted from viral success to structured dominance. The launch of GPT-5 in May turned its genAI edge into a full-scale platform spanning ChatGPT, API integrations, and enterprise deployments.

2025 marked an inflection point for agentic AI—autonomous systems that don’t just assist, but act. The year saw AI shift from text generators to decision-making collaborators embedded across business and creative workflows.

Here are four “Reimagining Retail” episodes to queue up for your holiday travel.

While we were right that retailers would offer richer in-store experiences to attract shoppers, we were wrong about how Amazon, discount retailers, and dollar stores would evolve their physical and digital strategies. From AI tools that stayed online to unfulfilled marketplace ambitions, here’s how we did with our 2025 predictions.

AI discovery is rewriting the rules of B2B marketing—and most CMOs admit they’re not ready. Nearly two-thirds (62%) of B2B tech marketing leaders lack the skills, budget, or strategy to compete with AI-native firms, per a new report by 3Thinkrs. Brands that don’t adapt could disappear from view. CMOs need to focus on staying visible in AI-powered summaries and answers. That means publishing fresher content, showing up in trusted news sources, and telling a consistent story across every channel. It also means learning new metrics that track how often your brand is mentioned by AI, not just humans.

YouTube is experimenting with AI avatars based on a small group of popular creators via Google’s “Portraits” feature, which allows fans to have conversations with AI versions of real-life creators. Advertisers should approach AI creators with cautious interest, closely monitoring how the format evolves as an ad opportunity while balancing emerging AI capabilities with consumers’ sensitivity to authenticity.

Platforms like ChatGPT are influencing more purchases, with sales forecast to hit $144 billion by 2029.

Artificial intelligence is working its way into every facet of the US economy, and the payments industry is no exception. While the changes to consumers’ payment behavior will be gradual, providers need to act now, according to our 2026 AI in the Payments Customer Life Cycle report. Providers need to overcome critical issues like data fragmentation, but a well executed AI strategy can help providers maintain control over product discovery and streamline checkout.

As AI moves into decision-making support, the next challenge is helping patients trust how it fits into their care.

On today’s podcast episode, we discuss our “very specific but highly unlikely” predictions for 2026: what Amazon will do with the price of Prime; between OpenAI and Apple, who’s most likely to buy whom; and why a potential WBD acquisition by Netflix might not go through in 2026—if at all. Join Senior Director of Podcasts and host Marcus Johnson, Principal Analyst Nate Elliott, and Vice Presidents of Content Suzy Davidkhanian and Paul Verna. Listen everywhere, and watch on YouTube and Spotify.

Amazon is recalibrating its relationship with the agencies and adtech firms that helped build its retail-media dominance. While Amazon insists agencies remain central, many intermediaries say rising data costs and tool duplication echo earlier platform playbooks from Google and Meta—centralize strengths, limit external dependencies, and scale in-house automation. The result is a more controlled, AI-driven ecosystem that may reduce tooling diversity while boosting Amazon’s own ad stack. For marketers, the challenge will be balancing Amazon’s convenience and scale with the flexibility, transparency, and customization offered by independent partners.