The trend: AI is delivering measurable results. Retailers, restaurants, and travel companies reported gains in sales, customer engagement, transaction speed, and productivity. AI tools are improving product discovery and ordering, helping companies streamline operations and boost revenues.

Why it’s working: Companies are applying AI to narrower, more practical business tasks. Model improvements and lower costs are also making it easier to use AI in areas like customer service, claims handling, and forecasting, where results are easier to measure.

Several retailers have credited AI tools with helping to improve conversions, drive higher spending per shopper, and deliver better customer service.

• Macy’s said that customers who use its “Ask Macy’s” chatbot, which is powered by Google Gemini, spend 4.75 times more than those who don’t, per Bloomberg.
• Online resale platform ThredUp said its AI investments helped active buyers rise 30% in Q4 2025, as its tools improved search, recommendations, and product processing.
• Home improvement retailer Lowe’s noted during its Q4 earnings call that customer experience metrics rose about 2% at stores using its AI assistant, called Mylow, which helps workers answer customer questions and quickly pull up product details.
• Expedia credited AI with driving its strongest fourth-quarter attach rates on record, as more customers bundled trip components like flights, hotels, and car rentals into a single transaction.

Expanded uses: Companies are broadening AI into new areas to drive revenues, including early applications of agentic commerce.

• Papa John’s is launching a voice-enabled AI pizza-ordering agent and is investing in AI for worker scheduling, inventory, and restaurant operations.
• Navan introduced an AI assistant that can book and adjust travel plans in real time, including rebooking flights and modifying reservations.

Brands are also applying AI to address after-purchase pain points. Extend, which provides post-purchase tools, says brands including Mizzen+Main, Lalo, and Glamnetic are using its AI platform to automate claims, returns, and shipping issues. A company spokeswoman told EMARKETER the platform has automated up to 76% of customer claims and expects to reduce returns costs by up to 15%.

Companies are going beyond experimental AI uses toward core operational functions. Common current uses include fraud detection and cybersecurity, pricing optimization, and service chatbots, per a Deloitte retail industry survey. However, adoption is expected to grow in areas such as supply chain visibility, social media monitoring, and demand forecasting over the next year.

Implications for brands: As AI expands into discovery, customer service, and backend operations, it is becoming part of companies’ basic infrastructure. The technology doesn’t just offer an avenue to better customer experiences but can pay off with concrete gains in financial performance.