Agentic AI and Personalized Shopping Experiences Will Dominate 2025

Tech executives and investors told PYMNTS that artificial intelligence will reshape retail shopping in 2025, with AI assistants offering unprecedented personalization and handling up to 20% of eCommerce tasks, from product recommendations to customer service. Industry leaders from Citi, Google Cloud and global tech investment firms envision a future where shopping becomes more intuitive and efficient. However, they emphasize the need for careful implementation to ensure security and accessibility.

AI Will Make Shopping ‘Black Mirror’ Real in 2025

Artificial intelligence will transform retail in 2025 by predicting consumer behavior with unprecedented accuracy and delivering personalization that might feel unsettlingly prescient, Lars Nyman, chief marketing officer at CUDO Compute, told PYMNTS.

“AI-driven personalization will go full Black Mirror in some cases, where your virtual assistant might ask, ‘Are you sure you don’t need those hiking boots before your Yellowstone trip next month?’” Nyman said.

He predicted AI will help retailers cut inventory costs by up to 10% through improved demand forecasting, citing McKinsey research. However, this enhanced personalization comes with challenges.

“Consumers will demand transparency on how their data is used,” Nyman said, suggesting renewed debate about data privacy as AI makes shopping more intimate yet potentially invasive.

Hyper-Personalization Will Transform Marketing

The rise of artificial intelligence will fundamentally change how businesses interact with customers on mobile devices, creating unprecedented levels of personalization, according to Daniel Nguyen, vice president and general manager of customer success at mobile marketing firm Airship.

“AI-powered hyper-personalization is going to change the game for mobile marketing,” Nguyen said. He emphasized that location-based targeting and in-app interactions will help businesses boost customer engagement.

Companies will need robust data strategies and experimentation frameworks to implement AI marketing tools, Nguyen said. The technology will handle time-consuming tasks like data analysis and content creation, allowing marketers to focus on optimization.

AI Will Drive Hyper-Personalized Shopping

Citi Ventures Head Arvind Purushotham said the future of online shopping will be intensely personal, with artificial intelligence helping retailers predict and cater to individual customer preferences like never before.

Purushotham told PYMNTS that AI advances will enable merchants to move far beyond basic product recommendations to create highly customized shopping experiences.

“We were expecting you,” Purushotham said, describing how AI will transform eCommerce. He predicted retailers would increasingly partner with AI startups to offer individualized perks like personalized discounts and custom return policies.

AI Fraud Threatens Online Shopping Security in 2025

Fraudsters armed with artificial intelligence will pose a growing threat to online shoppers in 2025, Ariel Tiger, CEO of FinTech company EverC, told PYMNTS.

The rise of AI tools has made it easier for scammers to deceive consumers. “Fraud is only going to continue to escalate in 2025, especially as technologies like ChatGPT are making it easier for fraudsters to spoof product descriptions and images,” Tiger said.

Regulators are racing to catch up. The European Union is preparing new AI rules, while U.S. states are rolling out their own regulations.

Meanwhile, many companies are jumping on the AI bandwagon — though Tiger suggests some may be exaggerating their capabilities, and that as AI becomes more central to online shopping, the gap between businesses with real AI expertise and those making empty claims is likely to widen.

AI Could Bridge Financial Gaps, but Bias Risks Loom

Accion Venture Lab, an early-stage investment firm, told PYMNTS that AI technology will enhance rather than replace human customer service while expanding access to commerce and financial services across sectors, including construction, manufacturing and agriculture. The firm recently backed this vision by investing in Sukhiba, an African AI platform that helps small businesses manage inventory and sales through WhatsApp.

However, Managing Partner Amee Parbhoo cautions against potential pitfalls. “The potential danger lies in algorithmic biases — if AI modules are built without small businesses, low-income consumers, and other vulnerable groups in mind, they will only further exclude these populations from the formal economy,” she told PYMNTS.

AI to Drive Major Business Shifts in 2025

AI will reshape business in key ways during 2025, according to Google Cloud, which predicted in a Tuesday (Dec. 17) post that companies will use AI that understands multiple formats — text, images, sound and video — for more natural interactions. AI agents will handle complex tasks, providing consistent customer service across all channels, according to the post, and internal search systems will become smarter, letting employees find information through natural conversation and images.

AI Agents Will Handle 20% of eCommerce Tasks

Artificial intelligence agents will revolutionize online shopping by handling one-fifth of all eCommerce tasks within the next year, predicts Paul van der Boor, vice president of AI at technology investment firm Prosus. He told PYMNTS that AI agents will emerge as key players alongside buyers and sellers in the eCommerce ecosystem, transforming how consumers shop online.

“Buyers will replace scrolling through pages of products with simply telling the AI what they’re looking for,” said van der Boor, whose company has invested over $1.4 billion across more than 80 companies in 100-plus markets.

Behavioral Data Key to 2025 Revenue Growth

Companies will harness digital behavioral data to drive revenue growth in 2025, according to Scott Voigt, CEO and co-founder of customer experience analytics firm FullStory. He told PYMNTS that businesses would leverage deeper insights into customer interactions, from website visits to shopping cart actions and “rage clicks” — signs of user frustration.

“Digital behavioral data uniquely fills gaps left by traditional analytics, offering richer insights into customer preferences, engagement patterns, and pain points,” Voigt said.

His Atlanta-based company analyzes user behavior for more than 3,000 customers, including U.S. financial institutions, airlines and retailers.

This shift toward behavioral data will transform how organizations understand and engage with their audiences, according to Voigt.

AI Agents Not Yet Ready to Transform eCommerce

While eCommerce companies will begin testing AI agents in 2025, the technology won’t revolutionize the industry for several more years, according to a senior analytics executive at a fulfillment company.

Steven Sermarini, senior director of data and advanced analytics at Radial, told PYMNTS that widespread adoption faces hurdles including scalability, data integration and trust in AI decision-making.

“Agentic AI will benefit customer communication by delivering personalized, timely updates on fulfillment status and timelines,” Sermarini said, predicting a 3- to 5-year timeline before major industry transformation.

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