The evolution of Artificial Intelligence (AI) is reshaping retail, and leadership must adapt to remain relevant and drive results. More than ever, leaders need to combine technological and human skills to create innovative and efficient environments.

Here are the five essential competencies for a retail leader in the AI era:

1. Digital literacy and AI understanding

Retail leadership must understand how AI can be leveraged to enhance operations, personalize customer experiences, and support data-driven decision-making. This does not mean becoming a coding expert but rather grasping the fundamental principles of AI tools and knowing how to apply them strategically. Additionally, leaders must critically assess AI’s limitations and potential risks, ensuring its implementation aligns with business goals and customer expectations. Familiarity with concepts such as machine learning, automation, and predictive analytics can provide a significant competitive advantage.

2. Data-driven decision-making

Modern retail is driven by data, and leaders who do not embrace this reality risk missing strategic opportunities. Developing a data-oriented mindset means not just collecting data but effectively interpreting it to optimize processes, forecast demand, and personalize offerings. The ability to transform information into actionable strategies depends on an analytical approach combined with intuition and market experience. Mastering business intelligence (BI) tools and big data analytics is essential to making well-founded decisions based on solid evidence rather than assumptions.

3. Ability to lead and engage teams in a changing environment

With automation taking over many tasks, leaders must guide and inspire their teams toward new challenges and skill development. Leading in times of change does not mean leading alone — it requires leveraging the diverse expertise and perspectives within a multidisciplinary team to expand decision-making options. The goal is not just to have one solution on the table but to consider multiple alternatives to choose the best path forward. Creating a collaborative and continuous learning environment is crucial to preparing teams for new technologies and processes. Transparent communication about changes and valuing human talent make teams more receptive and engaged as the market evolves.

4. Creativity and innovation in customer experience

AI can provide valuable insights, but it is up to leaders to ensure that the customer experience stands out. This requires a creative approach to integrating technology and human interaction, creating experiences that delight and build loyalty. The concept of “dopaminergic stores,” which I have been developing for some time, fits perfectly here, emphasizing the emotional and sensory impact in retail. These stores create immersive and engaging experiences that trigger consumers’ dopamine, making shopping more memorable and stimulating. The goal is to turn shopping into an engaging journey, using elements such as interactive design, personalization, gamification, and storytelling to emotionally connect customers with the brand. Creativity in retail will increasingly be a competitive differentiator, as consumers seek unique and stimulating experiences.

5. Ethics and responsibility in AI usage

As AI advances, it is crucial for leaders to act with transparency and responsibility when collecting and using customer data. The more consumer data is utilized, the clearer the explanation must be on how this information is applied. Customers are not afraid to share their data if it brings tangible benefits, such as more personalized service or better-targeted promotions. However, a lack of transparency can lead to distrust and damage the company’s reputation. Therefore, establishing clear privacy and data protection policies is essential to ensuring ethical and secure use of customer information. Leaders must also stay informed about data protection regulations, such as the LGPD (General Data Protection Law), to ensure legal compliance and avoid unnecessary risks.

Being a retail leader in the AI era is not just about mastering technology — it is about integrating Artificial Intelligence with human intelligence. The combination of digital knowledge, analytical capability, leadership skills, creativity, and responsibility will define success in this new landscape.

Those who master these competencies will be at the forefront of shaping the future of retail.

If it make you think, make it happen!
Caio Camargo