What: Retailers are increasing AI investment while still working out how to turn automation, agents and back-office transformation into measurable returns.

Why it is important: The article shows that AI’s retail value depends less on isolated tools than on workflow redesign, governance, data quality and human-machine collaboration.

Retail and fashion companies are increasing investment in AI, but the article argues that the technology’s impact will depend as much on people and organisational redesign as on software. WWD’s review of 17 U.S. retail and fashion companies found information technology, omnichannel and supply chain spending recurring in capital expenditure plans, even as stores remain the main priority. Walmart is the largest spender, with planned capex of $25 billion to $27 billion this year, while the other 16 retailers are expected to increase spending by 25% to $13.9 billion. Experts say most AI adoption remains broad but shallow, improving individual productivity without yet delivering organisation-wide gains. The challenge is redesigning workflows, governance and decision-making so AI does not simply create new bottlenecks. Back-office functions such as planning, sourcing, supply chain and wholesale order management are seen as major opportunities. Levi Strauss is already deploying around 1,000 AI agents across supply chain, planning and wholesale processes, supported by its enterprise resource planning transformation and stronger data foundation.

IADS Notes: WWD’s analysis of AI spending in retail aligns with notionnews coverage showing that the technology is moving from experimentation to a strategic operating priority, but with uneven returns and major organisational implications. In February 2026, BCG argued that retailers must move beyond adding AI to legacy processes and instead redesign business models, operating structures, workforce capabilities and investment priorities around AI-enabled platforms. Forbes reported in October 2025 that AI agents were already automating pricing, planning and store operations, but only with strong governance, training and human oversight. BCG’s April 2026 analysis of always-on merchandising showed how agentic AI can make pricing, promotion, assortment and inventory decisions continuous and data-driven, while shifting merchants toward higher-value work such as vendor relationships and category strategy. The Wall Street Journal noted in December 2025 that CEOs were continuing to fund AI despite inconsistent returns, with scaling, cybersecurity, workflow redesign and upskilling still major barriers. Strategy’s June 2026 case study on Lotte Department Store showed the potential payoff when governed data and purpose-built AI agents broaden analytics access and improve operational efficiency.

The money and brainpower retail is spending on AI