Retail Radar

Five AI Trends Transforming Retail Marketing

Written by Claudia Snape | August 14, 2025

Artificial intelligence is no longer an experimental tool for retailers. It has become a central driver of marketing innovation, customer engagement and operational efficiency. From autonomous “agentic” AI systems to privacy-focused personalisation, AI is setting the agenda for how brands connect with consumers in 2025. Here are five trends shaping the future of retail marketing, backed by the latest statistics and expert commentary.

1. Agentic AI Takes the Lead

Agentic AI, autonomous systems capable of managing marketing tasks and customer interactions with minimal human input, is gaining rapid adoption in retail. According to eMarketer, 43% of retailers are already piloting agentic AI tools, while another 53% are evaluating them. In the UK, a Salesforce survey found that three quarters of retail leaders believe AI agents will become essential to remain competitive within the next 12 months. The market potential is enormous, Mordor Intelligence projects that the global agentic AI retail and e-commerce sector will grow from £36.81 billion in 2025 to £137.88 billion by 2030, at a compound annual growth rate (CAGR) of over 30%.

2. Hyper Personalisation at Scale

AI-driven personalisation is delivering measurable improvements in marketing performance. According to Digital Defynd, agentic AI now autonomously generates over 300,000 marketing campaigns every month for brands like Nike, Sephora and H&M, achieving 2.4 times higher click through rates and cutting creative delivery times by 70%. In fashion retail, Vogue Business reports that Swarovski’s AI-powered recommendations account for 10% of its online sales, while AI-enhanced customer service tools have reduced issue resolution times by 48% year on year.

3. Predictive Analytics for Smarter Retail

Predictive analytics powered by AI enables retailers to anticipate customer needs, optimise inventory and tailor offers in real time. According to NVIDIA’s 2025 State of AI in Retail Report, nearly half of retail executives believe generative AI will be a key differentiator in customer experience, marketing and content creation.

4. AI Market Growth Accelerates

AI is not just a niche investment, it is becoming core to retail strategy. According to Grand View Research, the UK’s AI in retail market will grow from £507.56 million in 2024 to £1.32 billion by 2030, a CAGR of 16.7%. Globally, P&S Market Research forecasts growth from £5.28 billion in 2024 to £28.71 billion by 2030, at a CAGR of 32.6%.

5. Ethical AI as a Brand Differentiator

As AI adoption accelerates, so do consumer concerns about fairness, bias and privacy. According to a 2024 arXiv study surveying 300 consumers, many express distrust over how AI systems use and manage personal data. Retailers are responding by building ethical frameworks, conducting bias audits and improving transparency. Michelle Grant, Director of Retail Strategy and Insights at Salesforce, puts it in the company’s 2025 Connected Shoppers Report: “AI agents represent the next wave of retail AI innovation, digital labour that promises to reshape how retailers scale their workforces, serve and market to customers, and streamline operations.”

Key Takeaways

  • Agentic AI is quickly moving from pilot projects to mainstream retail operations.
  • Hyper personalisation is delivering strong return on investment through higher engagement and faster content delivery.
  • Predictive analytics is improving retail efficiency, from stock planning to targeted offers.
  • The AI in retail market is set for double and triple digit growth in the UK and globally.
  • Ethical AI is becoming a core part of customer trust and brand reputation.