The Current State of AI in Retail: What We Heard from Retail Leaders and Industry Partners

Movable Ink recently hosted a panel discussion moderated by Anjali Yakkundi, SVP of Marketing, bringing together leaders from Merkle, Inbox Monster, MoEngage, and retail brand Hibbett to unpack insights from our latest AI in Retail Report.

Based on responses from 225 senior retail marketers, the conversation focused on how teams are moving from AI curiosity to real application across email, mobile, and lifecycle marketing.

Here are the key takeaways.

AI Is Now Part of the Marketing Workflow

A year ago, most teams were experimenting with AI tools. Today, those tools are increasingly embedded in how marketers plan, execute, and analyze campaigns.

Instead of treating AI as a standalone capability, organizations are integrating it directly into their workflows to make everyday tasks faster and more efficient.

Matt McPhee, Managing Director at Inbox Monster, explained that the goal of AI-powered tools is simple: help teams achieve better outcomes faster. “We want our customers’ day-to-day work to be efficient and focused on better outcomes faster. Eventually people won’t even think about whether a tool is AI-powered or not.”

In other words, AI is becoming less of a novelty and more of a standard part of the marketing stack.

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Owned Channels Are Where AI Delivers the Most Value

While many retail brands continue investing heavily in paid channels like search, ads, and social, the panel emphasized that owned channels are where value compounds over time.

Once a brand acquires a customer, email and mobile become critical channels for building long-term engagement and lifetime value.

The report data reinforces this shift:
• 98% of retail marketers believe AI will make owned channels more important than earned channels for performance.
• 54% plan to increase investment in owned channels in the next 12 months.

This is where AI helps teams move beyond one-off campaigns and toward ongoing customer conversations.

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Hibbett’s Results Show What AI Can Unlock

Hibbett shared how applying AI within its lifecycle marketing strategy has delivered measurable results.

Email proved to be an ideal channel for testing and scaling personalization, helping the team increase both efficiency and performance.

Kayla Brown, Director of Customer Lifecycle at Hibbett, described the impact: “We saw an increase of over 40% in email revenue. Even more impressive, our lowest spending segment grew revenue by over 100%, bringing more long-term customer value.”

For smaller teams in particular, AI can make personalization at scale achievable without dramatically increasing resources.

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Mobile Is the Most Personal Channel

The panel also discussed the growing importance of mobile messaging. Because mobile devices are deeply personal, the bar for relevance is even higher.

New technologies like RCS messaging expand what brands can do, but they also require more sophisticated personalization to be effective.

Katharine Lutzich, Lead Product Marketing Manager at MoEngage, explained: “Mobile is our most personal channel. It’s where we plan trips and talk with loved ones. Brands need to show up in ways that increase retention and make customers feel valued.”

For marketers, that means AI-powered personalization will be critical to delivering the right experience at scale.

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Data Quality Is the Foundation

One insight from the report stood out above all others: 100% of marketers said high-quality customer data is the most important enabler of AI success.

AI cannot compensate for poor inputs. If data is incomplete, outdated, or inaccurate, the resulting customer experiences will suffer.

Cleaning and organizing customer data remains one of the most practical ways teams can improve their AI outcomes.

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Trust Enables Personalization

Finally, the panel highlighted the importance of trust.

Organizations must build trust internally with governance, compliance, and data practices. At the same time, brands must maintain consumer trust by delivering experiences that feel relevant and respectful.

Erin Kelsh, VP of Messaging Solutions & Innovation at Merkle, emphasized the consumer perspective: “Retail moves fast, and consumers lose trust very quickly if expectations aren’t met. When trust is established, people are more willing to share preferences and engage with personalized experiences.”

AI-powered personalization works best when customers feel confident about how their data is being used.

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The Takeaway

AI progress doesn’t come from adopting every new tool. It comes from focusing on the places where brands already have relationships with customers.

When retailers apply AI thoughtfully across email, mobile, and lifecycle marketing, they can scale personalization, improve efficiency, and strengthen long-term customer relationships.

To hear the full discussion and insights from the panelists, watch the conversation on demand and check out the related resources below.