What: The rise of agentic commerce signals a paradigm shift in retail, with AI agents mediating transactions, anticipating needs, and redefining how value is created and delivered.

Why it is important: This paradigm shift challenges retailers to build trust, transparency, and agent-ready systems, as the future of commerce will be shaped by those who can successfully collaborate with and serve both human and AI customers.

Agentic commerce, powered by autonomous AI agents, is fundamentally transforming the retail landscape by automating and personalising every step of the shopping journey. These intelligent agents anticipate consumer needs, navigate options, negotiate deals, and execute transactions, creating seamless, intent-driven experiences that blur the boundaries between platforms, services, and channels. McKinsey projects that agentic commerce could drive up to $1 trillion in US retail revenue and $3–5 trillion globally by 2030, underscoring the scale of this shift. As AI agents become the new gatekeepers of commerce, retailers, brands, and service providers must rethink business models, digital infrastructure, and customer engagement strategies to remain relevant. The transition introduces new technical and operational challenges, including the need for agent-ready APIs, robust data governance, and new standards for trust and compliance. Early movers who adapt to this new reality—by building agent-friendly platforms, reimagining monetisation, and prioritising transparency—will shape the future of retail, while those who lag risk obsolescence in an AI-driven marketplace. 

IADS Notes: The rise of agentic commerce—where autonomous AI agents anticipate needs, negotiate, and execute transactions on behalf of consumers—marks a fundamental transformation in the retail landscape. As detailed by Forbes (February 2025), 38% of global consumers are already using AI shopping tools, with 80% reporting positive experiences, and leading retailers such as Saks and SharkNinja are implementing agentic platforms to automate shopping journeys and customer interactions. Journal du Net (September 2025) and Inside Retail (November 2025) confirm that this shift is rapidly redistributing power from traditional retailers and e-commerce platforms to digital intermediaries and tech giants, compelling brands to recalibrate their data, APIs, and engagement strategies for machine readability. Mastercard’s launch of Agent Pay (May 2025) and Visa’s AI-powered payment solutions (May 2025) exemplify the industry’s move toward secure, agent-ready payment protocols, while the emergence of “Bot Battles” and algorithm-driven commerce highlights the urgency for retailers to optimize backend systems and structured data. The transition to agentic commerce is not without challenges: it demands new standards for trust, transparency, and responsible AI use, as well as a rethinking of business models, customer engagement, and risk management. Early movers who adapt their infrastructure, embrace agent-friendly platforms, and prioritize trust and data integrity are poised to shape the future of retail, while those who lag risk losing relevance in a rapidly evolving, AI-driven marketplace.

How AI agents are ushering in a new era for consumers and merchants