NEW YORK — Not even the trailblazers rolling out agentic AI technology can truly say how it will ultimately change the definition of a good customer experience, but they are fully prepared to learn.
The evolution of agentic commerce from a buzzword to reality was top of mind for executives at PayPal, Home Depot and Wayfair, who discussed their approaches to harnessing the technology at a National Retail Federation Big Show panel Sunday.
Home Depot is in “get out and try mode,” exploring the applications of agentic AI in its operations while paying close attention to how customers are using and adapting to the new features, according to the home improvement retailer’s CIO, Angie Brown.
“We think about both what we're bringing to life on our own site with tools like Magic Apron and some tools for project-based shopping, and then we also think about how the consumer's behavior is going to shift and as it relates to that shopping experience,” Brown said during the panel.
The goal is to learn about what kinds of agentic experiences resonate with customers and associates.
Wayfair is taking a similar approach, with the retailer “doubling down on learning with the consumer,” CTO Fiona Tan said during the panel.
A year ago, agentic AI for consumers essentially didn’t exist, according to Tan. Now, many customers are not only conducting research but completing transactions off site, leading to two different but equally important journeys.
“I think it's very important for us to lean into both the on-site and off-site experiences,” Tan said.
Escaping the limits of search
The search experience has been handicapped for the past 20 years, according to Tan.
Customers were limited to a few words in the search bar, a few filters, and maybe a few clicks around the site they are using, Tan said. Now, they can find what they need through a conversational interface with capabilities beyond product discovery.
No one knows exactly what the agentic commerce experience will look like once it truly takes off, but Home Depot is treating it as the next evolution of search, one that can more easily turn into a product purchase, according to Brown.
Agentic commerce is opening opportunities beyond search as well. One of Home Depot’s goals is to reach the point where its AI helps customers better understand their home improvement projects and walks them through the planning experience.
Even as it advances, AI is unlikely to replace traditional digital experiences outright, according to Mike Edmonds, VP of agentic commerce and commercial growth at PayPal. Agents may take over the most annoying or time consuming transactions, but most shopping will remain a human experience.
“I think there's many parts of shopping that people love, and I think in the foreseeable future that's going to continue,” Edmonds said during the panel. “I'm under no false illusion that shopping one day is going to be completely autonomous, and humans are no longer interacting with brands.”
Prepare for a slow and steady rollout
Even as AI becomes a larger part of customers’ lives, trust will remain a major limiting factor in how customers use the technology.
More people are using the technology for finding answers and products, and while these interactions create trust, that doesn’t mean AI agents will start making purchases on customers’ behalf in the immediate future.
“To go from discovery into checkout is a whole different chasm, and I think we need to prepare ourselves,” Edmonds said during the panel. “I'm under no false illusion that there's going to be a snap of the finger and then all of a sudden agentic commerce is going to be everywhere.”
A good way to prepare for the slow embrace of AI, without the risk of getting left behind, is to introduce the technology in small, incremental ways, according to Edmonds.
Home Depot’s earliest generative AI foray started deep in its product detail pages, where an AI tool would ask a customer about their project, according to Brown. The company studied how customers interacted with it there and applied the learnings as it made AI more prominent, culminating in the technology being put directly in front of customers through Magic Apron, its suite of generative AI tools designed to improve search results and answer questions.
The home improvement retailer is also expanding Magic Apron to additional customer touch points. On Sunday, Home Depot announced that the tools will now offer advice on customers’ projects and can guide in-store customers to its suggested products at certain locations. It plans to roll out the capability nationwide in the coming months.
Going forward, the retailer is testing ways to hit the “sweet spot” where the technology can sit where it’s needed to improve the customer experience without being in the shopper’s way, Brown said.
