Key takeaways

  • Artificial intelligence is rapidly reshaping retail, but not in the ways consumers might immediately notice.
  • At Macy’s, that philosophy is more often defined by what senior director of engineering Murali Murugan describes as an “AI-first” approach.
  • ” Early efforts focused on narrow, high-impact use cases like search recommendations and customer engagement, where measurable gains in…

What happened

At Macy’s, that philosophy is more often defined by what senior director of engineering Murali Murugan describes as an “AI-first” approach. “AI first isn’t about adding intelligence on top,” Murugan says. ” Rather than layering AI onto existing workflows, Macy’s is embedding intelligence directly into systems that include personalization, search, operational planning, and software development itself.

"The real transformation in this all comes from continuous improvement," Murugan says. "It's about learning from the mistakes, quickly adapting to the newer technology standards that are coming into play, timing, and execution which compound into a meaningfully better customer experience."

Why it matters

” Early efforts focused on narrow, high-impact use cases like search recommendations and customer engagement, where measurable gains in conversion and reduced friction quickly built internal momentum. “Once we established the quick wins, scaling was a business decision, not a technology debate anymore,” he says.

That momentum is now extending into conversational commerce through tools like Ask Macy’s, an AI-powered shopping assistant designed to act more like a personal stylist than a traditional search bar. Whether for a prom, a vacation, or a last-minute event, customers can describe what they need conversationally and receive curated recommendations informed by past purchases, preferences, and context.

Still, the company sees AI as more of an invisible layer augmenting human judgment than a replacement for it. The long-term vision is retail that feels increasingly seamless, adaptive, and personalized, powered by systems customers may never even notice are there.

What to watch

This webcast is produced in partnership with Infosys.

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