Ironically, this is the moment when it truly begins for real. The beautiful thing about paradigm shifts is that they really sneak up on you. First, you don’t really notice anything, but suddenly the whole playing field has changed. Remember the mobile phone?
It started as a plastic calling device and has turned into something many of us can’t live without. We use it for everything from online banking to tracking our kids’ soccer games. And just as much as parents try to limit their children’s screen time, just as certain is it that AI will bring an even bigger transformation than the mobile phone ever did.
When Customers No Longer Need to Google
Not long ago it could take half an afternoon to do a proper product comparison online. We googled, read articles, asked questions in forums and visited countless online shops (maybe even a few physical stores…). Still, we weren’t always sure which product to choose.
Today? Give an AI assistant two sentences and you’ll get a complete overview of pros and cons, price comparisons, reviews and links. The only thing missing is a “buy now” button, and even that is not far away (and partly already exists). Having an AI assistant on your phone or laptop is like carrying a highly educated, slightly omniscient and brutally honest personal shopper in your pocket.
For consumers it’s the dream. The cost of a search is nearly zero, allowing you to quickly find the right product at the right price. However, for retailers it’s more of a nightmare. AI assistants are erasing the information asymmetry that retailers used to rely on. Once upon a time, shops could profit from customers not knowing that an almost identical body lotion was sitting three shelves away for a third of the price or that a competitor was offering the same body lotion for half the price with free shipping.
Now, AI can present buyers with all that information in seconds: stock availability, shipping terms, and even a reminder that the same product is available at a store on your way home. The data has existed for years. The difference is that customers used to be too lazy to look for it in the same way. Now they hardly need to lift a finger, especially not with voice control!
The Most Informed Customer in History
We’re about to meet the most rational customer retail has ever seen, at least on paper. AI tools like ChatGPT, Claude, and Gemini are rapidly getting better at retrieving facts but also at understanding relevance, tone, reviews, and sustainability data. OpenAI’s new Atlas Browser, Google’s AI integration via Gemini in Chrome, and similar moves show only the beginning of what’s coming. We’re still in the Stone Age of AI-powered consumption.
Luckily, humans aren’t rational creatures. Even if AI tells us exactly which waterproof jacket is the cheapest, we’ll probably still buy the one that looks better, that we saw an influencer wear, or that is sold in a shop where the staff are always friendly.
Where Rationality Meets Emotion
Purchasing decisions are driven by trust, identity, and joy. Sure, we might know that our favorite lotion is cheaper somewhere else, but we’ll still end up buying it from the store where the staff is friendly and where we feel seen.
The same applies online. Brands that can create emotional value alongside rational value can, if they do it well, justify a slightly higher price. However, the clearer the rational arguments become, the harder the emotional experience has to work.
Because when the choice is between “a nice experience” and “crystal-clear rationality,” rationality wins. Two US dollars on Temu versus twenty dollars for the exact same product in-store? Good luck selling “the experience” then.
Three Paths Forward for Retail
For retailers, there are really only three ways forward:
- Become the most rational choice.
- Become the most emotional choice.
- Or, if you’re truly excellent, succeed at both.
We’re already seeing examples of both strategies.
Swedish beauty retailer Lyko calls its stores “Beauty Playgrounds” instead of stores and that’s no accident. They’re building community and belonging and making every visit, online or offline, part of the customer’s beauty journey. At the same time, they offer competitive prices, a wide range, and state-of-the-art logistics.
Swedish discount retailer Rusta plays the low-price card but in a way that feels inspiring, well-organized, and smart rather than cheap. They combine great instincts with efficient logistics and for customers it actually feels like a smart decision to shop there, not a cheap one.
What about monobrand retailers, though? They’re definitely not immune. An AI assistant that compares a popular jacket to a cheaper competitor’s version and includes everything from materials, reviews and production, can quickly reveal that the difference between 500 USD and 100 USD is sometimes just the logo (both are in fact made in the same factory in Bangladesh)
When customers get that information in the blink of an eye and ask AI why they should buy the more expensive jacket, your brand had better deliver emotion, credibility, and community to win their hearts.
The Return of Rationality
Winning on rationality takes surgical precision: the right products, in the right place, at the right price, at the right time. That means AI-driven logistics, predictive demand planning, and local warehouses optimized for last-mile delivery.
In practice, you become a well-oiled machine or, bluntly put, an AI favorite. If you can combine that efficiency with a customer experience that actually moves people, you’re unstoppable. That’s the holy grail in retail: maximum rationality, maximum emotion.
A Minute of Silence for Mediocre Retail
The conclusion is that AI will continue to help customers expose every inflated price, every half-hearted product range, every outdated USP. It will show exactly what you offer, how it compares to competitors, and why anyone should pick you. Make sure the answer is worth it. Because if you don’t have rational strength or emotional pull, it’s time to start running. The avalanche is already on its way.
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