NRF 2025 review: Big trends, from the big show, in the big apple

Authored by Ruth Harrison MBA , Global Retail and Consumer Goods Lead, Avanade 

Retail leaders know that while the holiday season is December, the greatest gifts arrive in January. Specifically, in the middle of January at the Javits Convention Center in New York City.

Once again, the NRF Big Show was a fast, furious fiesta of future-ready retail innovation and experiences. No surprises for guessing the topic of the moment. But we saw a subtle yet significant shift in the discussion around AI this year – moving from experimentation and use case exploration 12 months ago to scaling and measuring value this year.

So, whether you attended the conference and need a concise recap or couldn’t be there this year – here’s our overview of the most important NRF 2025 trends, from our experts on the ground.   

Jay Cherrington – Global Industry Alliance Lead  

Broadening the definition of "value" created by generative AI 

“One of my biggest takeaways from NRF 2025 was the clear, collective desire to expand and evolve the definition of the value that AI can deliver. Immediate metrics like cost savings and efficiency gains that align to their KPIs will absolutely remain key – but retailers are starting to embrace broader measures including customer satisfaction, loyalty and innovation as key indicators of AI's value. 

This is what really stood out to me – seeing how retailers are now leveraging generative AI to transform experiences and measuring the impact according to an uptick in loyalty, average basket size and more.  

In the Avanade lounge and on the Microsoft booth (together with our friends at Accenture ) we were showcasing the power of the Microsoft Personalized Shopping Agent through our Avanade Shopper Copilot solution – which provides contextual, conversational and hyper-personalized experiences. The solution is a great example of how retailers can generate value from AI investments – we’re working with leading retailers to quantify the impact through real retail KPIs including conversion rates, upselling percentages and customer satisfaction scores.” 

Marcos Suárez – Europe Retail and Consumer Goods Lead 

The fast evolution of AI from generative to agentic  

“For me, the most significant trend at NRF 2025 was the shift in focus from traditional and generative AI to agentic AI. You didn’t need to move far on the show floor to bump into a conversation about agents autonomously performing complex tasks across the retail value chain.  

The ability of AI agents to operate independently – making decisions and executing tasks without human prompting and intervention – is particularly important in the retail sector. The retail industry is the second largest employer worldwide, so people will always be central in AI transformation. But by lowering the adoption burden on the human workforce, through fully automating workflows or less cumbersome training, new forms of AI are more likely to be embraced – and therefore to succeed.  

One of the areas we explored in our demo showcase was the ability to harness AI agents to improve the efficiency of in-store operations in luxury retail. Our Clientelling Copilot Accelerator demo showed how the Microsoft Store Operations Agent can provide store associates and client advisors with AI-powered capabilities and key data insights on the shop floor, in real-time, at the “moment of truth”. Here, agentic AI not only improves efficiency through task and workflow automation; it also frees up the associate’s time so they can focus on elevating the customer experiences and delivering the moments that matter in store.” 

Rasmus Hyltegård – Global AI Lead for Retail and Consumer Goods 

AI has fundamentally shifted how we design core retail operations 

“I walked away from NRF enthused by the impact AI is having on retail – though not for the reasons you might expect. What excited me the most—and far more than specific use cases, apps or point solutions—is the realization that, finally, we can use AI to fully reimagine core operations and workflows. Designed and set up to achieve an outcome rather than being constrained or defined by legacy roles, organizational silos or perceived technology limitations. To me, this changes the entire game, enabling transformational change over incremental gains. 

Make no mistake – there’s still a long way to go. But AI (and the democratization of data across the value chain that it obliges) is giving retailers the confidence to rethink core operations starting with the desired outcomes. We’re seeing examples of how cross-functional teams are coming together to design ideal workflows which deliver both now and in the longer-term.  

Fortune favors the bold, and I walked away from NRF more certain than ever that those retailers – old and new – who can look past functional silos and focus on how processes and workflows can be delivered in the best possible way, powered by AI, will stand victorious. And yes, some will lean more on people, others will involve a blend of human and AI colleagues in unison. But whatever the target outcome, AI is encouraging retailers to think ‘why we can…’ rather than ‘why we can’t…’” Or as a senior leader from one of our clients noted: “This literally changes everything!” 

Ruth Harrison MBA – Global Retail and Consumer Goods Lead    Prizing and prioritizing your people in the AI age 

I’ll conclude this overview with my own observation. What has stuck with me from this year’s NRF is that the role of humans in retail’s AI era has never been more important. And for that reason, a sustained commitment to upskilling in the AI era is crucial.  

The rapid pace of AI innovation means retailers are playing on a field where the goal posts are continually shifting. Learning and development will become more crucial as we make sense of the full potential AI has to offer. 

Investment in flexible upskilling programs can help retailers ensure diverse and dispersed teams all get the best out of AI. Meanwhile, immersive, personalized learning experiences help employees develop the skills needed to navigate the complexities of modern AI-augmented retail. This focus on continual learning not only enhances employee performance but also elevates experiences for customers and drives innovation in the industry. 

One specific example of this (that I’m particularly proud of) is showcased in our partnership with MediaMarktSaturn . MyBuddy is an AI-powered solution that gives MediaMarktSaturn’s employees the ability to deliver intuitive, personalized, and seamless service for customers shopping for the latest consumer electronics. You can find out more about the MyBuddy solution in this video.  

Whatever trend stood out to you, one thing we can all agree on is that there’s never been a more exciting era for retail, thanks to the transformative potential of AI. And if you’d like to discuss your AI aspirations, I’d love to chat with you. Please do reach out to me, here on LinkedIn.