Reinventing Retail for AI-Native Shoppers

Retail discovery and commerce are undergoing a fundamental shift. As artificial intelligence becomes embedded across the consumer journey, retailers must rethink how customers search, discover, and buy products.

On stage, David Clark of Frasers Group and Jennifer Myers of Microsoft joined the conversation to explore how retailers can evolve for AI-native shoppers, with Algolia CEO Bernadette Nixon referenced as a key industry voice shaping the future of AI-powered retail search.

Why AI Is Redefining Retail Discovery

AI now plays a role in the majority of consumer purchase journeys. Shoppers increasingly rely on conversational tools, assistants, and large language models to research products, compare options, and seek advice.

Industry forecasts suggest that by 2030, trillions of dollars in goods and services will be transacted through agentic AI, where systems communicate and act on behalf of consumers. This shift is forcing retailers to rethink both on-site experiences and how they appear across off-site AI platforms.

What Retailers Fear Most About Agentic Commerce

Jennifer Myers shared that uncertainty is the most common concern among retailers today.

Retailers want to know how to ensure their products appear in AI assistants like Microsoft Copilot, how ranking works, and how brand voice and merchandising translate into conversational experiences. Many are still searching for a clear playbook in a rapidly evolving environment.

While conversational commerce offers opportunity, it also introduces new complexity around visibility, control, and measurement.

Frasers Group's Strategy for Conversational Shopping

David Clark described how Frasers Group, a UK-based multi-category retailer with more than $10 billion in annual turnover, views this transition as both a risk and a major opportunity.

Rather than focusing solely on clicks and impressions, Frasers Group is investing in conversational relationships. Clark likened the future of AI commerce to the shopkeepers of the past, where ongoing dialogue built trust, understanding, and loyalty.

The company's digital elevation strategy focuses on building flexible technology foundations that support rapid experimentation, personalization, and platform-agnostic innovation.

The Role of Data in AI Search and Discovery

Data emerged as a central theme throughout the discussion.

Jennifer Myers explained that traditional product feeds are no longer sufficient for AI-driven discovery. Conversational commerce requires richer, more nuanced data, including context, intent, and usage scenarios that often live outside structured schemas.

Through partnerships with companies like Algolia, Microsoft is working to ingest unstructured data from retailer sites, such as product storytelling, outfit inspiration, and use-case details. This enables more accurate and relevant recommendations within Copilot and other AI experiences.

How Microsoft Copilot Is Changing Product Visibility

Microsoft Copilot sits at the intersection of advice, search, and shopping. Many consumer journeys begin with a request for guidance and evolve into commerce.

Understanding shopper intent is critical. Myers highlighted the importance of identifying whether a user is price-focused, comparison-driven, or inspiration-seeking, and then surfacing relevant products accordingly.

The goal is to help retailers understand how and why their products appear, while preserving first-party data ownership and avoiding disintermediation.

Building Differentiated Experiences On Site and Off Site

Clark emphasized that differentiation cannot be bought off the shelf.

On-site, Frasers Group is investing in conversational agents that allow customers to interact naturally, receive personalized recommendations, and build memory over time. These experiences aim to mirror the continuity shoppers expect from AI tools they already use.

Off-site, the focus is on organic visibility, content strategy, and partnerships with platforms like Microsoft to ensure readiness for AI-driven checkout and discovery as adoption accelerates.

The Takeaway for Retail Leaders

AI-native shoppers are not a future concept. They are already reshaping retail behavior.

For leaders, the priority is clear. Build strong data foundations, invest in conversational experiences, and partner strategically across the AI ecosystem. Retailers that embrace agility, experimentation, and customer-centric design will be best positioned to thrive as agentic commerce moves from emerging trend to industry standard.