Retailers must prepare for a paradigm shift in commerce, where autonomous agents act as customers rather than mere tools, according to a top official of a major full-line retailer across the Gulf Co-operation Council (GCC). Dr Mohamed Althaf, Global Director, Global Operations and Chief Sustainability Officer at LuLu Retail, discussed this at length in his LinkedIn article ‘Agentic Retail: When the Bot is Your Customer,’ drawing from his own household experience to illustrate how diverse preferences – from dietary restrictions to sustainability choices – have turned grocery shopping into a complex negotiation. “That leaves me, a retail executive, watching our weekly grocery list turn into a complex task. And I know we’re not the only household facing this. Across millions of homes, grocery shopping has become a negotiation shaped by dietary needs, climate ethics, price sensitivity, brand loyalty, and supply chain inconsistencies,” he explained. “Enter agentic commerce,” Dr Althaf further explained that “AI agents no longer just recommend products – they actually decide.” He continued, “They filter for dietary needs, read reviews, negotiate discounts, compare prices, manage logistics, coordinate delivery, and even make payments — all autonomously. It’s shopping on autopilot.” But he was quick to point out that retailers are already adapting, noting that Walmart has partnered with OpenAI and Mastercard has launched ‘Agent Pay’ with PayPal, embedding trust into agentic commerce from the start. “That’s a significant shift. In early e-commerce, secure payment infrastructure followed the creation of digital storefronts. It took years for trust to catch up. With agentic commerce, the trust layer is embedded from day one. “These agents could help reduce food waste through precise inventory management, flag safety issues earlier, or improve compliance with labelling laws. Ironically, they might even deliver smoother customer experiences than some human associates,” Dr Althaf emphasised. Dr Althaf warns that agentic commerce doesn’t just change shopping – “it could erase much of what we think of as retail,” adding that the implications for retail “are profound.” Unlike human shoppers, Dr Althaf noted that agents don’t browse, pause at displays, or read marketing copy. They execute parameters. For smaller brands, this poses a threat: if products aren’t machine visible or aligned with agent logic, they risk vanishing from the digital shelf. “In today’s omnichannel world, retailers still shape customer experience through store layouts, product displays, promotions, and digital carousels. But in an agent-driven future, that influence fades ... we’ve seen this before, when algorithms began deciding which products got seen and which got buried,” he said. Dr Althaf also cautions against over-optimism, recalling past predictions: Jeff Bezos’s 2019 forecast of 25% online grocery penetration, blockchain promises, and Amazon Go’s retreat. “Six years, a global pandemic, and billions in investment later, online grocery is still nowhere near that 25% dream. A few years ago, blockchain was supposed to fix every clunky purchase and payment flow, and some retailers were busy buying ‘prime real estate’ in the metaverse and worrying about digital squatters. “Today, most of those plots look more like expensive ghost towns than the future of retail. Amazon, after much hype about its Amazon Go stores, is quietly letting go, after it failed to scale,” Dr Althaf reiterated.He also said, “Even if convenience improves, profitability might not. These agents are built for efficiency. They’re immune to brand loyalty and don’t impulse buy. They choose the cheapest, most logical option. If I hand inventory management to an AI agent, I might just end up needing to hire someone, probably more expensive, to manage the APIs instead. “That means tighter margins, smaller carts, and no upsells. Retailers who once relied on shelf placements, promotions, and checkout add-ons will feel the squeeze. No more candy bars at checkout, no more endcap serendipity. Agents don’t browse. They execute — and for retailers, that might feel more like an execution.” Despite risks, Dr Althaf remains optimistic, noting that he sees potential for branded agents and partnerships to preserve customer experience. But according to Dr Althaf, agentic commerce requires fresh investments in architecture, talent, and systems—not a plug-and-play upgrade. “These shifts often come with layoffs before the benefits materialise. What we gain in convenience, we may lose in agency – ironically. Soon, agentic-native commerce will be the norm – and we’ll all need to learn the language,” he pointed out. Dr Althaf also urged policymakers to ask tough questions: “Who controls what agents see? Can a platform sell both the agent and the product it recommends? Will consumers know when an AI agent is influenced by commercial agreements?” He warned that without guardrails, agentic commerce risks consolidating power invisibly. “Agentic commerce has the potential to shift enormous power to the platforms. Without guardrails, transparency, and oversight, we risk another wave of digital consolidation – this time without even a screen to see it happening.” “Retail, at its best, has always been about more than consumption. It’s where people get their first jobs. Where they learn to work, serve, and lead. Where human connection happens,” he stressed. He added: “Behind that innocuous threat was something real – a recognition that retail has long been an equal-opportunity employer. It welcomed people without fancy credentials but with a strong work ethic. It was a start. A lifeline. A path forward. Soon, even that warning might not make sense. If agentic commerce takes over, retail may become just another corner of the ‘knowledge economy’.”
