As the competitive landscape of the retail industry shifts from physical stores and products to artificial intelligence (AI) and data, experts emphasize the need to connect innovation with consumer value.
Aju Economy held the 17th Consumer Policy Forum on June 25 at the Korea Press Center in Jung-gu, Seoul, under the theme "AI Transformation in the Retail Industry and Innovation of Consumer Value in an Era of Low Growth." The forum provided an in-depth look at the current state and future directions of the retail industry, which is undergoing a paradigm shift due to prolonged domestic economic stagnation.
Kim In-ho, Chairman of the Korea Retail Forum, predicted that the next generation of retail competitiveness will shift from location and store expansion to understanding customers and leveraging data assets. He noted that agentic commerce, where consumers delegate purchasing decisions to AI agents, will become more prevalent. He highlighted the importance of enhancing information delivery and recommendation functions as essential for the survival of retail businesses. Kim also observed that consumer spending is expanding from basic needs to areas of self-expression, such as hobbies, relaxation, and experiences. Consequently, he urged retailers to move away from growth through store expansion and instead focus on personalized product offerings that enhance customer lifetime value and frequency of use.
The forum also shared examples of AI innovations and strategies in the retail sector. Lee Tae-hee, Head of Operations Strategy at Kurly, presented AI as a solution to rising costs, stating, "The direction of innovation is not merely cost reduction but creating new customer value that was previously unattainable through AI." Kurly is applying AI not only for product descriptions, search, and recommendations but also for order management, agricultural product sorting, and logistics center operations. This approach aims to reduce stockouts and waste while also increasing logistics productivity through the use of autonomous robots.
Lee Seung-jun, Team Leader at Shinsegae I&C AX Center, emphasized that the competitive landscape will shift from "where customers visit" to "what AI recommends." He stressed the urgent need to establish a trustworthy infrastructure that ensures algorithm transparency and data reliability. Shinsegae I&C is using AI to detect product mis-scans at self-checkout counters and to analyze sales, inventory, and waste history to suggest optimal discount rates for fresh products.
Legislative and administrative challenges for translating technological advancements into tangible consumer benefits were also discussed. Lee Joo-hee, a member of the Democratic Party, promised to establish a regulatory framework to protect consumer rights, stating, "Innovation can only be sustainable when algorithm transparency, data reliability, and consumer choice are guaranteed."
Yoon Soo-hyun, Director of the Korea Consumer Agency, emphasized that the ultimate goal of the AI transformation should be consumer happiness and the safety of everyday life for all. He pledged efforts to ensure that the benefits of increased productivity translate into tangible advantages for consumers.
* This article has been translated by AI.
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