Artificial intelligence has rapidly moved from a novelty to an essential utility in retail. From product discovery to price comparison and personalized recommendations, AI is reshaping how consumers shop and how retailers compete. But as the technology grows more powerful, a critical question is emerging: How much AI is too much?
Insights from the National Retail Federation’s (NRF’s) recent State of Retail & the Consumer event suggest the answer may lie not in what AI can do, but in what consumers want it to do.
Nowhere is that tension more evident than with Gen Z. The industry’s most digitally savvy consumer base is also its most sophisticated regarding AI. On one side, they are eager adopters. On the other side, they are becoming increasingly cautious about how the technology affects their choices.
“There’s a lot of excitement,” said Pinterest’s Rachel Hardy during a panel discussion moderated by NRF’s Katherine Cullen. But Hardy also mentioned increasing discomfort with overly prescriptive AI experiences. “It can feel like AI is making decisions for you very quickly,” she said. “But that also leads to impulse buys and purchases that Gen Z doesn’t really feel good about.”
That distinction — between providing assistance and taking over — may be crucial for the future of AI in retail.
For years, retailers have pursued personalization as a way to increase sales conversion. AI promises to provide that at scale, shortening the journey from discovery to purchase into seconds. However, as Hardy points out, speed and efficiency can have drawbacks. When consumers feel decisions are being made for them rather than with them, AI shifts from being helpful to being manipulative.
YPulse chief content officer MaryLeigh Bliss underscored that Gen Z is not passively accepting these experiences. “They’re becoming AI detectives,” she said. “When they see something online, their first question is, is this AI?”
That skepticism isn’t about rejecting AI but about demanding transparency. Bliss mentioned that 78% of Gen Z consumers want clear labeling of AI-generated content, a standard that hasn’t yet been adopted across platforms or retail settings.
There is also a broader strategic risk with AI. As the tools become more capable of surfacing products, comparing prices and even completing transactions, retailers risk ceding influence over the customer relationship. If discovery is mediated by third-party platforms, maintaining brand differentiation becomes increasingly difficult.
At the same time, consumers are signaling where AI adds real value. Bliss pointed to key use cases that resonate: “comparing products and prices and finding new products.” These applications enhance clarity and convenience without undermining consumer agency.
The challenge, then, is calibration. Retailers need to create AI experiences that empower shoppers rather than overwhelm them — guiding without controlling outcomes. That probably means focusing on visual discovery, interactive tools and transparent recommendations that maintain a sense of control.
It also means recognizing that trust is becoming a competitive advantage. In an environment where consumers increasingly question what they see, brands that are clear about how AI is used — and where human judgment still plays a role — may stand out.
