How AI Will Reshape Retail Media (And Why Great Retailers Will Still Win)

I recently joined Wendy Liebmann on the Future Shop podcast for a conversation about one of the biggest questions facing retail today: what happens to retail media as AI changes the way people shop?In this episode, I share snippets from my chat with Wendy and explore why the current retail media model may be heading for a major shift, how AI-powered shopping assistants could dramatically reduce ad inventory, and why retailers shouldn't panic. We also dig into what will continue to differentiate successful retailers in an AI-first world i.e. why customer experience, convenience, and unique value propositions matter more than ever. If you're thinking about the future of retail, ecommerce, or advertising, this is a conversation you won't want to miss.This episode is sponsored by GrowthLoopTimeline[00:22] – Why AI is fundamentally changing shopping behavior and what that means for retail media.[01:41] – How retailers should rethink customer journeys instead of focusing only on ad placement.[03:27] – My analysis of Amazon's Rufus and why AI shopping assistants could dramatically reduce available advertising inventory.[05:10] – What shrinking ad supply could mean for retail media economics and retailer revenue models.[07:46] – Why Costco is a powerful example of building retail media around customer value instead of maximizing ad volume.[11:25] – The lesson retailers should take from real-world shopping decisions: convenience and experience often beat price.Links & ResourcesListen to my appearance on Wendy Liebmann's podcast Future ShopSubscribe to Future Shop on SpotifyFollow Wendy Liebmann, CEO at WSL Strategic Retail, on LinkedInFor a great recap of Amazon's earnings results and this mechanism, check out the most recent episode of the Jason + Scot Show podcastKroger Precision Marketing launched new AI assistant ad units just last weekRead my related articles:ChatGPT Ads Are Here. I'm Not Panicking.AI-Enabled Shopping Hits 74% AdoptionMaybe Ads in AI Don't Have To Suck?Check out Basket Case, a project I’m part of with The Drum and QSIC, an irreverent and lively podcast series talking shop. The latest episode dropped last weekI'm sharing comedy skits on Instagram about retail media! Follow along: @retailmediabreakfastclubSubscribe to Retail Media Breakfast Club's daily newsletterFollow Kiri Masters on LinkedIn