Today, humans set the rules and guide AI to protect brand value and price.
Retailers are changing the role of merchandisers as artificial intelligence (AI) handles tasks such as inventory forecasting, product assortment, and inventory management.
Juan Picente Huillaja, a senior partner at Gideon Consulting Group, describes this shift as a “curation strategy,” where humans focus on trend discovery and brand storytelling while AI manages data analysis.
“The role is now less about managing spreadsheets and more about managing AI parameters to ensure product mix aligns with the brand’s long-term vision, not just short-term sales volumes,” he told Retail Asia.
According to Nvidia Corp, nearly half of retail and consumer goods companies are already using or evaluating agent AI, and 21% plan to implement it within a year.
Retailers are applying AI to digital shopping assistants, product catalog management, and warehouse and supply chain operations.
A January report from McKinsey & Co. notes that agent AI can plan, act, and learn on its own. Instead of slow weekly or monthly review cycles, sellers can adjust prices, optimize promotions, and balance product ranges in near real-time.
Although implementation is progressing, challenges remain. According to the report, 71% of merchants say AI merchandising tools have had little impact so far, while 61% say their organizations are only slightly prepared or not ready to extend AI across their merchandising functions.
Andrea Carnino, senior procurement manager at Ricegrowers Ltd. (SunRice), said humans should focus on judgment, storytelling, supplier collaboration, and in-store impact.
“Using agent AI to do what it does best – crunch data, identify patterns, test sources, save time, repeat – frees people to focus on decision-making, storytelling, supplier collaboration, and in-store/customer impact,” he said in a separate comment.
Analysts cited the need for safeguards in AI-driven pricing. Widjaja recommended strategic guardrails, such as minimum price limits, to prevent a “race to the bottom” that could damage a brand’s reputation.
Autonomous systems should also be audited to avoid prioritizing low-value, price-sensitive shoppers over loyal, high-margin customers, he added.
“Transparency in how dynamic pricing is applied is essential,” he said. “If consumers feel like they are being exploited by an algorithm, trust in a brand is quickly eroded.”
Carnino said price changes need to benefit consumers and avoid continuous fluctuations that can confuse shoppers. He cited IKEA’s “New Low Prices” initiative as a model for fair and stable pricing.
Sharon Iles, senior apparel analyst at GlobalData Plc, said human merchandisers now serve as the ethical and strategic layer guiding AI.
Retailers should set clear brand rules and maintain regular review cycles with alerts for anomalous AI behavior to ensure recommendations are audited rather than blindly implemented.
“Growing retailers will treat AI as a powerful but limited tool, with empowered human merchandisers serving as an ethical and strategic layer that keeps pricing in line with long-term brand equity and customer loyalty,” she said in an emailed response to questions.
