Retail’s Quiet AI Revolution: Behind-the-Scenes Intelligence Reshapes the Industry
Artificial intelligence is quietly transforming retail, not through flashy consumer-facing features but by reengineering the core systems that power the industry. From search results and supply chains to software development and real-time customer response, AI is evolving from a set of isolated tools into an overarching operational philosophy. This shift is particularly evident at legacy retailers like Macy’s, where the focus is on embedding intelligence directly into decision-making processes rather than simply adding it on top of existing workflows.
Macy’s senior director of engineering, Murali Murugan, describes this as an “AI-first” approach. “It’s about redesigning how decisions happen so the business moves faster and every experience feels more relevant by default,” he says. The company has moved beyond early pilots in search recommendations and customer engagement—where quick wins in conversion and reduced friction built internal support—to scaling AI across personalization, operational planning, and even software development. The goal, Murugan explains, is to compress “the gap between the signal and the action.”
This momentum has led to tools like Ask Macy’s, an AI-powered shopping assistant that acts as a personal stylist, offering curated recommendations based on conversational input, past purchases, and context. Yet the company views AI as an invisible layer that augments human judgment rather than replacing it. The long-term vision is a seamless, adaptive, and personalized retail experience powered by systems customers may never notice.
“The real transformation comes from continuous improvement,” Murugan says. “It’s about learning from mistakes, quickly adapting to new technology standards, and executing in ways that compound into a meaningfully better customer experience.” This story was produced in partnership with Infosys as part of Insights, the custom content arm of MIT Technology Review.