The days of AI pilot projects are rapidly fading. Across industries like retail and manufacturing, Snowflake reports that leading companies are moving agentic AI from the lab into daily operations, making it a foundational element of their business.
In retail, 58% of companies are already deploying AI, driven by consumers who increasingly shop via conversational agents rather than brand websites. Manufacturing firms are leveraging AI-powered agents as dynamic knowledge bases to combat the loss of institutional knowledge, a critical need as skilled trade positions face significant shortages.
This marks a fundamental shift, moving beyond traditional search-based e-commerce to what’s being termed agentic commerce. As Shanthi Rajagopalan of Microsoft noted, consumers are now turning to conversational interfaces for product discovery and purchases, demanding that retailers translate natural language interactions into usable data insights.
The Shift From Search to Agents
For retailers, this means optimizing for what’s called Answer Engine Optimization (AEO) and Generative Engine Optimization (GEO), replacing keyword-focused SEO. The goal is to ensure products are discoverable by AI shopping agents, viewing the brand through the agent’s perspective. This focus on agentic AI in retail requires brands to prepare their semantic space.
In manufacturing, the transformation involves embedding AI into systems, moving away from static spreadsheets. AI serves as a vital succession plan for an aging workforce. Leaders are focusing on specific AI use cases to enhance efficiency and intelligence.
