What: Retail media is evolving as brands and retailers balance practical AI use, customer journey quality, and the return of emotion to foster loyalty.

Why it is important: The renewed focus on emotion and storytelling aligns with the latest trends in loyalty and community engagement highlighted in the past year.

Retail media is at a pivotal juncture, shaped by the widespread adoption of artificial intelligence and the need for meaningful differentiation in a highly competitive environment. As AI becomes a foundational tool, its success now depends on operational, value-creating applications rather than theoretical promise or generic solutions. Retailers and brands are increasingly challenged to demonstrate the tangible impact of AI, ensuring that investments translate into measurable benefits for both consumers and businesses. At the same time, the market is responding to consumer fatigue from excessive advertising by prioritising the quality of the customer journey and restoring user experience as a strategic imperative. This shift is accompanied by a renewed appreciation for emotion and storytelling, as brands seek to rebuild loyalty and human connection in an environment that has become overly transactional. By integrating performance, utility, and emotional resonance, retail media is redefining its value proposition, aiming for a mature, impactful, and experience-driven future that serves both brands and shoppers.

IADS Notes: The retail media landscape’s transformation is underscored by recent developments, with January 2026 marking AI’s rise as a driver of efficiency and customer engagement, while March and November 2025 highlight the growing importance of hyper-personalisation and omnichannel strategies for loyalty. December 2025 saw a shift toward curated, high-quality advertising, and September and May 2025 emphasized the resurgence of emotion and community-driven loyalty programs. This convergence of technology, shopper utility, and emotional connection is shaping a more sustainable and competitive retail media environment.

Retail media: Will AI kill emotion?