What: AI agents are now mediating and automating e-commerce transactions, redefining the relationship between brands, retailers, and consumers.

Why it is important: This shift reflects a major reconfiguration of retail power structures, as tech giants and AI agents increasingly control consumer access and decision-making.

Agentic commerce is ushering in a new era where autonomous AI agents, rather than consumers, drive purchasing decisions and orchestrate the entire shopping journey. Major players like Amazon, Google, and OpenAI are rapidly deploying AI-powered features that automate transactions, negotiate terms, and personalize experiences, signaling a profound transformation in retail. This evolution is not only changing how products are bought and sold but also challenging the relevance of traditional e-commerce websites, as merchants must now optimize data and APIs for machine readability. The direct relationship between brands and consumers is being replaced by algorithmic mediation, forcing retailers to rethink engagement strategies and content creation. Even luxury retail, historically reliant on personal service, is adapting by leveraging AI for hyper-personalization and digital storytelling. While these advances promise operational efficiency and tailored experiences, they also raise concerns about the loss of brand identity, increased dependence on tech giants, and the opacity of algorithmic decision-making. The retail sector faces an urgent need to adapt, as the shift to agentic commerce is rapidly becoming the new standard.

IADS Notes: The rise of agentic commerce is validated by recent industry data showing 32% of consumer goods companies implementing generative AI and 38% of global consumers using AI shopping tools as of early 2025. This shift is driving a redistribution of power, with tech giants mediating consumer journeys and compelling brands to recalibrate digital strategies for machine readability. Customer relationships are being redefined, as AI agents automate and personalize experiences, delivering productivity gains of 15-30% in customer service, though employee readiness remains a challenge. Luxury brands like LVMH and Saks are also embracing AI-driven personalization to meet heightened consumer expectations, confirming that agentic commerce demands urgent adaptation across all retail segments.

Agentic commerce: When AI takes control of e-commerce