Morning Business Report: AI drives retail changes as Macy’s, OpenAI and tech giants reshape the market

Artificial intelligence is rapidly transforming the retail and tech landscape.

(LILAMAX)- Artificial intelligence is rapidly transforming the retail and tech landscape, helping companies boost sales, expand delivery, and reshape the workforce.

Retail giant Macy’s is using AI to reverse a sales decline with its new tool, “Ask Macy’s,” powered by Google’s Gemini platform. The company says customers who use the AI assistant are spending four times more, highlighting the growing influence of AI in shopping.

Macy’s is part of a broader trend, with an estimated 40 percent of U.S. retailers now launching AI-powered shopping assistants, according to Bloomberg.

Meanwhile, OpenAI is expanding into advertising — and seeing early success. A report from The Information says the company’s pilot ad program has generated more than $100 million in revenue in just six weeks.

New research also shows AI’s growing impact on the workforce. A survey of 750 CFOs from the National Bureau of Economic Research suggests AI is likely to replace routine administrative jobs, while skilled trades remain more secure. The findings also indicate more educated workers may face increased pressure as automation advances.

At the same time, competition between Amazon and Walmart is intensifying — especially in rural America. Both companies are racing to dominate what’s being called a $1 trillion rural shopping market by offering faster, often overnight, deliveries.

Amazon has invested $4 billion to speed up its logistics network, while Walmart already has a strong advantage with stores and clubs located within 10 miles of 90 percent of U.S. households, including much of small-town America.

In the tech world, rising demand for AI is also driving up costs. PlayStation 5 prices are increasing due to higher memory chip costs. Starting April 1, the standard PS5 will cost $649 — up $100 — while the PS5 Pro will jump to $899.