AI & Retail Media: Will Generative AI Disrupt Ecommerce?

The debate over how quickly artificial intelligence will reshape commerce is intensifying, with differing views emerging even among industry leaders. While some predict a rapid shift towards “agentic commerce” – where AI bots autonomously handle transactions – others remain skeptical about the immediate disruption to traditional shopping behaviors. The discussion unfolded at Shoptalk 2026 in Las Vegas, highlighting the uncertainty surrounding the future of retail media and ecommerce systems.

A Disagreement on the Pace of Change

Scot Wingo, CEO of ReFiBuy, a company focused on recommerce, argued that 10% of all commerce could be fully agentic by 2030. Wingo, a five-time serial entrepreneur with experience founding companies like ChannelAdvisor/Rithum and Spiffy, believes AI agents will increasingly accept over the purchasing process. This vision involves bots interacting with other bots to complete transactions, bypassing traditional consumer-facing interfaces. However, his prediction was met with pushback from retail media analyst Andrew Lipsman.

Lipsman countered that while large language models are undoubtedly changing how consumers discover products and collapsing the traditional marketing funnel, a complete transition to bot-to-bot commerce is unlikely in the near future. He maintains that shoppers will continue to navigate each stage of the funnel – from initial awareness to final purchase – regardless of AI-driven efficiencies. This perspective suggests that AI will augment, rather than replace, the human element in the shopping experience.

The E.l.f. Beauty Perspective

The discussion at Shoptalk also featured Ekta Chopra, Chief Digital Officer of e.l.f. Beauty. While specific comments from Chopra weren’t detailed in the available sources, her presence signals the growing importance of understanding how AI is already impacting consumer behavior. Shoptalk’s agenda highlights the focus on customer-facing AI applications and generative AI, suggesting that companies like e.l.f. Beauty are actively exploring these technologies.

E.l.f. Beauty, known for its digitally-native approach and strong social media presence, has been a leader in leveraging technology to connect with consumers. The company’s focus on direct-to-consumer sales and data-driven marketing makes it a prime candidate to experiment with AI-powered tools. The company’s digital strategy has demonstrably contributed to its growth; in February 2024, e.l.f. Beauty reported net sales of $239.6 million, a 14% increase compared to the same period in the previous year.

How AI is Reshaping the Marketing Funnel

Lipsman’s argument centers on the idea that AI is primarily impacting the *discovery* phase of the shopping journey. Large language models are becoming increasingly adept at understanding consumer intent and providing personalized product recommendations. This is changing how people find products, but it doesn’t necessarily mean they’re ready to relinquish control of the entire purchasing process. The traditional marketing funnel consists of awareness, interest, desire, and action. AI is streamlining the first three stages, but the final “action” – the actual purchase – still typically requires human input.

This shift has significant implications for retail media networks, which rely on advertising to drive traffic and sales. As AI-powered search and recommendation engines become more sophisticated, retailers will require to adapt their advertising strategies to remain relevant. The rise of agentic commerce, if it materializes as Wingo predicts, could further disrupt retail media by creating fresh channels for direct-to-bot advertising.

The Competitive Landscape and Implications for Recommerce

ReFiBuy, led by Wingo, operates in the recommerce space – the buying and selling of pre-owned goods. This sector is particularly well-suited for AI-driven automation, as the process of evaluating and pricing used items can be complex and time-consuming. AI can be used to assess the condition of products, determine fair market value, and streamline the listing process. The company’s focus on recommerce positions it at the intersection of sustainability and technology, appealing to a growing segment of consumers.

The broader ecommerce landscape is dominated by giants like Amazon and Walmart, both of which are heavily investing in AI. Amazon, for example, is using AI to personalize product recommendations, optimize pricing, and improve its supply chain. Walmart is leveraging AI to enhance its online grocery shopping experience and automate its fulfillment centers. These investments demonstrate the widespread recognition of AI’s potential to transform the retail industry.

Risks and Trade-offs in AI Adoption

While AI offers numerous benefits, there are also risks and trade-offs to consider. One concern is the potential for bias in AI algorithms. If the data used to train these algorithms is biased, the resulting recommendations may perpetuate existing inequalities. Another risk is the potential for job displacement, as AI-powered automation could eliminate certain retail roles. The increasing reliance on AI raises concerns about data privacy and security.

For companies like e.l.f. Beauty, the challenge lies in balancing the benefits of AI with the need to maintain a human connection with their customers. Over-reliance on automation could lead to a loss of brand authenticity and customer loyalty. The key will be to apply AI to enhance, rather than replace, the human element in the shopping experience.

What’s Next: Monitoring the Evolution of Agentic Commerce

The debate between Wingo and Lipsman highlights the uncertainty surrounding the future of AI in commerce. The next few years will be crucial in determining whether agentic commerce becomes a mainstream reality or remains a niche phenomenon. Key indicators to watch include the adoption rate of AI-powered shopping tools, the development of new bot-to-bot commerce platforms, and the regulatory response to the ethical and societal implications of AI. The Shoptalk Spring agenda will continue to be a key venue for tracking these developments, with the 2027 agenda already in development.