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Artificial Intelligence

Retailers face big hurdles in 2025. From competing with Amazon's advertising empire to figuring out generative AI (genAI) technology to keeping shoppers on apps, these challenges are forcing retailers to adapt quickly. Here's what these problems look like today—and how they could potentially be resolved.

As marketing becomes more directly tied to revenue goals, the ability to measure and report on its impact has declined. Some of that can be attributed to signal loss as the industry moves away from third-party tracking to more privacy-safe identifiers. Today’s audiences are also spread across multiple channels and devices. This makes it harder to track the customer journey and attribute results to specific marketing efforts.

A scrappy Chinese startup disrupts the AI hierarchy with a lean, open-source model, challenging Big Tech’s costly infrastructure and rewriting the rules of AI competition.

While AI adoption could save employees significant time, most still see it as a draft generator—helpful, but far from a finished product.

The AI agent interacts with the internet like a human and could replace personal assistants—but its data storage and cost implications loom large.

As genAI expands beyond chatbots, app categories like banking and messaging could see AI-driven disruption, reshaping mobile habits and spending trends

In-store, consumers want experiences that engage their senses, while online, they’re interested in generative AI (genAI) tools that can help them research products. Plus, young men in the South lead in fast-food consumption, retail leaders lean on loyalty to boost growth, and holiday spending remained in check (for the most part).

US hospitals use predictive AI tools, but many use biased data: Most AI models make recommendations based on homogenous data samples, which could actually harm many patients. But more regulatory oversight of healthcare AI isn’t guaranteed to happen in the near term.

Google is rolling out new features for its AI-powered Performance Max advertising platform, giving marketers more control over their campaigns and deeper insig

Amid leadership upheaval and falling stock, it could be an attractive target for Amazon or Spotify, which could benefit from Sonos’ hardware expertise.

OpenAI can use other cloud providers, but Microsoft retains API exclusivity through 2030—suggesting it may be offloading some costs while keeping strategic advantages.

Traditional prompt-driven AI is giving way to agentic AI, which consists of autonomous agents capable of independently performing tasks, making real-time decisions, and learning from experience. Though it’s still in its early phases, agentic AI enables marketers to enhance operational efficiency, personalize customer interactions, and drive innovation.

OpenAI, Oracle, and SoftBank’s mega-investment in US data centers could fuel AI’s growth. However, soaring energy and water demands may slow the pace.

By scrapping Biden’s AI order, Trump signals a hands-off approach, fueling AI competition but risking consumer privacy and security.

A majority of US companies see strong returns from genAI, but AI mistakes, trust issues, and limited workforce access could stall broader adoption.

Automating civil service tasks could save billions, but concerns over job losses, transparency, and AI reliability may dampen enthusiasm.

On today's podcast episode, we discuss how much we will actually be using AI agents this year, what happens when they start talking to each other, and how much Apple is likely to move the smart glasses adoption needle. Tune in to the conversation with Senior Director of Podcasts and host Marcus Johnson, Technology Analyst Jacob Bourne and Senior Briefings Editor Gadjo Sevilla. Listen everywhere and watch on YouTube and Spotify.

With the holiday season in the rearview mirror, our analysts are already looking ahead to what the rest of this year—including the 2025 holiday season—will look like. This year will be defined by unpredictability, as President Trump begins his second term during a time of mixed consumer sentiments. Here are four trends our analysts expect will continue in 2025.

Friend delays its AI pendant release and drops chatbot platform, betting on product refinement as it navigates resource constraints.

Oracle surged 6% amid AI collaboration news. Apple, SpaceX, and Microsoft align with government priorities, leveraging investments for strategic gains.