could be a game-changer for CX, and his answer is as exciting as it is blunt. “Historically, major digital change cycles have happened every five to seven years,” he told Inside Retail. “With AI accelerating development and productivity, that timeframe’s rapidly shrinking. Businesses must prepare for continuous innovation, faster release cadences, and rising customer expectations for instant improvement across the experience.” In other words, the coming 12 months will usher in some of the most significant changes in a generation to how we purchase online, as retailers rush to use AI to make the shopping experience more personalised than ever before. The word around the industry Carter’s prediction was echoed in Inside Retail’s discussion with customer experience leaders, both locally and around the world, from retailers and brands large and small. Airi Sutherland, the VP of e-commerce at fashion label Outcast Clothing, defines the target as delivering “personalisation with purpose” – experiences that feel both individually tailored and effortless. “The brands leading the charge will combine predictive data models with real-time contextual triggers to anticipate needs, not just react to them,” Sutherland said. “Seamless omnichannel visibility, AI-powered service, and fast, flexible fulfilment will all be table stakes, but the differentiator will be how human the experience feels. From proactive support via AI agents to adaptive site interfaces and loyalty experiences that evolve with the customer, the focus will shift from transactional convenience to emotional connection and retention.” That change will not be limited to implementing AI, she continued, but will also involve combining it with customer data platforms, product information management systems, and a strong CRM that moves beyond email to touch all platforms and create context-aware moments rather than generic automation. “The brands that win will be those that connect these systems to deliver personalisation that feels effortless, and distinctly human,” Sutherland concluded. A better, gentler CX Data, though, will increasingly be seen as a dirty word by consumers in 2026, with many sceptical about what information is collected about them and what a brand is doing with it. Leah Betts, co-founder of sleepwear brand Cachia, warned that its customers want to feel understood, not targeted. “In 2026, successful CX isn’t about aggressive algorithms or forcing products; it’s about quietly using smart technology to make every part of their journey feel smooth, thoughtful, and genuinely human. The heart of our philosophy is that customers want to feel known, but they don’t want to feel watched. There is a difference.” Advancements need to go beyond simply the point of purchase, too. Liana Lorenzato, chief growth officer at the underwear subscription brand Knobby, said AI is quietly transforming customer support. “Smart retailers are using AI assistants and automation to handle routine queries, surface next best actions, and give agents a full view of the customer so human conversations can be more efficient and more empathetic,” Lorenzato said. “As agentic AI matures, expect it to proactively resolve simple issues and orchestrate journeys, while complex or emotional moments are still owned by well-equipped humans.” The potential benefits, she added, could be “groundbreaking”. It’s not just AI; the maturation of existing technologies could reach its peak next year. “Social shopping will have its moment in Australia throughout 2026,” she said. “Why? Because it allows brands to showcase products almost three-dimensionally. How the product fits on different bodies and heights, or how a cosmetic product looks. All without retouching or creative lighting. It is the real moment – humanise an increasingly AI world.” The best of both worlds In the US, where adoption is ahead of Australia’s, mixing human know-how with AI’s speed is a constant topic of discussion. Shannon Quarantino, VP of e-commerce at Los Angeles-based activewear brand Splits59, argued that leaders must align both their product offering and experience around the core values of quality, authenticity and lifestyle. “There will be a continued emphasis on listening to customer feedback and expanding offerings to meet evolving needs,” she said. Meanwhile, Ali Grace, founder of San Diego-based circular fashion brand Aligrace Denim, believes customers are becoming more intentional with their spending. “Community will drive conversion in 2026, because people want to buy from brands that feel human and relatable, not transactional,” she said. How, though, to deliver? Well, Carter shares that at David Jones, leaders are advocating for and investing in a holistic approach that offers a fully connected omnichannel journey. “In 2026, the distinction between online and in-store will cease to exist,” he warned. “Customers will expect one continuous journey across every channel. Retailers who deliver consistent design, shared data, and seamless movement between touchpoints will build deeper trust and higher lifetime value. “Your brand experience now extends long after checkout. Transparent delivery updates, proactive communication, sustainable fulfilment choices, and easy returns will be as important as the product display page and product photography.” Olivia Toth, head of online trade and experience at Baby Bunting, agrees with the approach. “Shoppers don’t think in channels, they think in tasks,” Toth said. “They want to research on mobile, get in-store advice, check real-time availability, buy online and return in-store without starting again. Technology should make that hand-off seamless, mirroring the in-store experience with rich content, guided selling and human support when it’s needed, and bringing digital into store through shared profiles, wish lists, endless-aisle ordering and simple ways to surface online content (reviews, comparison tools) at the shelf.” The year ahead All of this will become increasingly important over the next 12 months, as Australia’s economic issues are unlikely to ease. “In a cost-of-living environment, customers are weighing up shipping cost, speed and reliability just as much as price,” Toth added. “They’re reading delivery promises and returns policies before they hit ‘add to cart’. The critical features are the ones that hand control back to the customer, letting them choose and change flexible delivery options like same-day and click-and-collect, track an order in real time, manage returns digitally, set their preferences and reach customer care through simple, low-friction channels that resolve issues without the run-around, whether that’s live chat, in-app messaging or smart self-service.” It’s not so much, then, that customers will spend less. It’s more that they want more confidence in their purchasing decision. Retailers, therefore, must adapt from simply targeting keywords to prompt-style, natural questions, with human feedback at their core. “Retailers need credible, in-depth content such as reviews, user-generated content, rich imagery, educational guides, fit and comparison tools, and simple interactive elements like quizzes or checklists,” Toth asserted. “AI-led search and recommendation engines and onsite tools should then interpret those questions and the customer’s context, surfacing the most relevant products and content in one clear, helpful response.” As 2026 begins, the message from CX leaders is clear: The future belongs to retailers who can blend the precision of AI with the empathy, reassurance and creativity that only humans can offer. This story first appeared in the 2026 Australian Retail Outlook. Further reading: How can retailers strengthen supply chains in 2026?