This Black Friday marks a transformative moment in retail, as AI shopping gains significant traction among consumers. As shoppers flock to stores like those in Sydney’s Pitt Street Mall, they increasingly rely on artificial intelligence to guide their purchasing decisions, compare products, and even finalize transactions. However, the rise of what is termed ‘agentic shopping’ presents unique challenges alongside its conveniences.

The concept of agentic shopping refers to consumers using large language models to enhance their shopping experience significantly. While it provides personalized advice and streamlines the purchasing process, it simultaneously exposes them to heightened risks of digital fraud. Michael Reitblat, CEO of Forter, an identity intelligence company focused on fraud prevention, underscores this dichotomy by stating that the very tools making shopping easier for consumers are also enabling fraudsters. A staggering 200% increase in agentic shopping by consumers over the past six months has correlated with almost a tenfold increase in AI-driven fraudulent activities.

Reitblat vividly illustrates this phenomenon by suggesting that it resembles sending thousands of robotic shoppers into various stores to pose as legitimate consumers. With such a rapid escalation of AI-enabled fraud, many retailers grapple with the decision of how to respond. Some have instinctively opted to ban AI purchases altogether, a strategy that might backfire. As AI becomes integral to consumer experiences and drives valuable traffic to retail platforms, the ban could inhibit reaching potential customers who prefer this shopping method.

Furthermore, a recent report by McKinsey & Company and The Business of Fashion indicates that executives in the fashion industry view AI and digital tools as the foremost opportunity for growth in 2026. The evolving landscape necessitates that brands adapt to ensure their products remain visible and appealing to AI-driven consumer behavior. This includes a shift in marketing and e-commerce strategies, highlighting the importance of semantically rich data and API-accessible content.

To combat the rise in AI-related fraud, Reitblat advises brands to leverage superior data compared to what fraudsters utilize. Authentication of consumers must become a focal point of strategy amidst rising digital threats, underscoring the urgent need for retailers to use AI as a defense mechanism against its illicit applications.

As the festive shopping season approaches, it is crucial to acknowledge the prevailing economic sentiment and its impact on consumer behavior. Shaky consumer confidence poses additional challenges for retailers this year, particularly given concerns about job security and trade tensions. The European Commission’s data reveals that economic sentiment in Europe has remained persistently below its long-term average since mid-2022. Additionally, the U.S. has seen consumer confidence dwindling to its lowest since April, mirroring broader anxieties regarding the economic climate.

This year’s Black Friday sales will not only test the waters of AI’s impact on retail but also reveal how retailers adapt to the dual reality of opportunity and risk. As more shoppers turn to AI for product recommendations and purchases, the necessity for businesses to recalibrate their strategies grows increasingly urgent. Retailers must navigate the fine line between embracing technological advancements in consumer engagement and fortifying their defenses against the escalating threats posed by digital fraud.

Ultimately, as the landscape of retail evolves, stakeholders across the industry—from brand managers to investors—must remain agile, employing innovative approaches while ensuring trust and security in the face of digital evolution.