{"id":70734,"date":"2025-08-07T10:29:05","date_gmt":"2025-08-07T09:29:05","guid":{"rendered":""},"modified":"2025-08-07T10:29:17","modified_gmt":"2025-08-07T09:29:17","slug":"ai-in-retail-the-opportunity-for-software-development-companies","status":"publish","type":"post","link":"https:\/\/cm-edgetun.pages.dev\/en-gb\/industry\/blog\/retail\/2025\/08\/07\/ai-in-retail-the-opportunity-for-software-development-companies\/","title":{"rendered":"AI in retail: the opportunity for software development companies"},"content":{"rendered":"\n<p>According to <a href=\"https:\/\/www.gartner.com\/en\/newsroom\/press-releases\/2023-10-11-gartner-says-more-than-80-percent-of-enterprises-will-have-used-generative-ai-apis-or-deployed-generative-ai-enabled-applications-by-2026\" target=\"_blank\" rel=\"noreferrer noopener\">a Gartner forecast<\/a>, over 80% of enterprises will have used generative AI APIs or deployed AI-enabled applications in production by 2026. This is a sharp increase from less than 5% in 2023. Such explosive growth signals a massive opportunity for software development companies (SDCs) to build, scale and monetise AI-powered retail solutions.<\/p>\n\n\n\n<p>In addition, <a href=\"https:\/\/www.mckinsey.com\/industries\/retail\/our-insights\/llm-to-roi-how-to-scale-gen-ai-in-retail\" target=\"_blank\" rel=\"noreferrer noopener\">a McKinsey report<\/a> states that generative AI could unlock between $240 billion to $390 billion in value for retailers. When combined with non-generative AI and analytics, the total value created could reach into the trillions.<\/p>\n\n\n\n<p>These reports suggest the retail industry is at a pivotal moment. Generative AI is no longer a future concept &#8211; it\u2019s actively reshaping how retailers operate and compete. For software development companies, this shift isn&#8217;t just a trend to watch, it\u2019s a transformation to build for.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"from-experimentation-to-execution\">From experimentation to execution<\/h2>\n\n\n\n<p>Retail-focused software development companies are no longer just exploring generative AI &#8211; they\u2019re deploying it at scale. Microsoft partners are leading the charge, embedding AI into retail operations to deliver measurable outcomes. <\/p>\n\n\n\n<p>Here are four standout examples:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/retail\/2024\/03\/25\/unlock-the-full-potential-of-your-next-generation-supply-chain-with-microsoft-and-blue-yonder\/\" target=\"_blank\" rel=\"noreferrer noopener\">Blue Yonder<\/a> is working with Microsoft to build next-generation supply chain solutions powered by generative AI. Their AI copilots help retailers create agile, resilient and sustainable supply chains, connecting data across ecosystems to identify issues and optimise performance in real time.<\/li>\n\n\n\n<li><a href=\"https:\/\/cm-edgetun.pages.dev\/en\/customers\/story\/1754582924902623921-adobe-inc-azure-retailers-en-united-states\" target=\"_blank\" rel=\"noreferrer noopener\">Adobe<\/a> is leveraging Microsoft Azure to deliver personalised customer experiences at scale. Through Adobe Experience Platform and Adobe Campaign, retailers can unify customer data and orchestrate AI-powered journeys across channels &#8211; turning insights into action with speed and precision.<\/li>\n\n\n\n<li><a href=\"https:\/\/cm-edgetun.pages.dev\/en\/customers\/story\/1774955047512563878-vusiongroup-azure-retailers-en-france\" target=\"_blank\" rel=\"noreferrer noopener\">VusionGroup<\/a>, a global leader in IoT and data solutions for physical commerce, is transforming bricks-and-mortar stores into intelligent, connected assets. By combining generative AI with Azure\u2019s global infrastructure, they enable retailers to optimise store operations, reduce waste, and deliver seamless omnichannel experiences.<\/li>\n\n\n\n<li><a href=\"https:\/\/cm-edgetun.pages.dev\/en\/customers\/story\/1774371104807136246-promo-azure-media-and-entertainment-en-israel\" target=\"_blank\" rel=\"noreferrer noopener\">Promo.com<\/a>, supported by Microsoft partner 2bcloud, scaled its PromoAI product using Azure OpenAI Service. The platform empowers small businesses and agencies to generate branded marketing videos in minutes.<\/li>\n<\/ul>\n\n\n\n<p>Ultimately, these examples reflect a broader industry shift in how SDCs are building for the future of retail. By co-innovating with Microsoft, partners are accelerating time to value, expanding their reach, and shaping the next wave of AI-powered retail transformation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"implications-for-software-development-companies\">Implications for software development companies<\/h2>\n\n\n\n<p>For software development companies, the rise of generative AI in retail is more than a technical shift, it\u2019s a strategic inflection point. To support this transformation, Microsoft\u2019s perspective on AI in retail is grounded in four key transformation areas, each offering a blueprint for how SDCs can build differentiated value:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Enriching employee experiences<br><\/strong>AI can empower frontline and back-office retail employees with intelligent tools that reduce friction and boost productivity. SDCs can build copilots and task-specific agents that automate repetitive work, surface insights in real time and support decision-making, whether in stores, warehouses or HQ.<br><\/li>\n\n\n\n<li><strong>Reinventing customer engagement<br><\/strong>Today\u2019s consumers expect personalised, seamless experiences across channels. Generative AI enables hyper-personalised content, conversational commerce and adaptive interfaces. SDCs can help retailers deliver these experiences by embedding AI into customer relationship management (CRM), marketing and service platforms.<br><\/li>\n\n\n\n<li><strong>Reshaping business processes<br><\/strong>From supply chain optimisation to fraud detection, AI is transforming core retail operations. SDCs can create modular, API-first solutions that integrate with legacy systems and modernise workflows, driving efficiency, agility and resilience.<br><\/li>\n\n\n\n<li><strong>Bending the curve on innovation<br><\/strong>Generative AI lowers the barrier to experimentation and accelerates time to value. SDCs that embrace co-innovation, working closely with retailers to prototype, test and iterate, can unlock new business models and revenue streams. Leveraging Microsoft\u2019s ecosystem for co-sell, scale and technical enablement can further amplify impact.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-microsoft-partnership-supports-growth\">How Microsoft partnership supports growth<\/h2>\n\n\n\n<p>We view our relationship with software development companies not just as a platform and AI provider, but as a strategic growth partner. Working side-by-side with SDCs, we help them unlock new markets, co-innovate and scale their impact globally.<\/p>\n\n\n\n<p>Whether you\u2019re building a new AI-powered retail solution or modernising an existing platform, Microsoft offers more than just infrastructure. We offer partnership support that includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Collaborating early to shape product direction and align with market needs.<\/li>\n\n\n\n<li>Co-selling together through our global commercial marketplace.<\/li>\n\n\n\n<li>Connecting you with customers through curated industry programmes and events.<\/li>\n\n\n\n<li>Investing in your success with go-to-market support, technical enablement and funding opportunities.<\/li>\n<\/ul>\n\n\n\n<p>We\u2019re seeing the most successful SDCs treat Microsoft not just as a cloud provider, but as a business development partner &#8211; one that helps them move faster, reach further and grow stronger.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"looking-ahead\">Looking ahead<\/h2>\n\n\n\n<p>If you&#8217;re a software development company building for the retail industry, now is the time to act. By harnessing generative AI, those who move early will shape the future.<br><br>As a Partner Development Manager at Microsoft, I work directly with SDCs to help them scale faster, co-innovate with confidence and unlock new commercial opportunities. Whether you&#8217;re exploring your first AI-powered solution or looking to expand into new markets, let\u2019s connect and explore how we can grow together in this era of AI-powered retail.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"join-the-microsoft-ai-cloud-partner-programme\">Join the Microsoft AI Cloud Partner Programme<\/h2>\n\n\n\n<p>You can start accelerating success today by joining the <a href=\"https:\/\/partner.microsoft.com\/en-gb\/partner\" target=\"_blank\" rel=\"noreferrer noopener\">Microsoft AI Cloud Partner Programme<\/a>. Meanwhile, we invite you to explore two key SDC resources via our links below \u2013 an <strong>e-book<\/strong> explaining how to build intelligent apps that elevate user experiences, and a <strong>webinar<\/strong> outlining our latest ISV Success resources and incentives.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"fine-out-moreabout-the-author\">Find out more<\/h2>\n\n\n\n<p><a href=\"https:\/\/info.microsoft.com\/ww-landing-transform-isv-applications-with-intelligent-ai-personalization.html?lcid=EN-GB\" target=\"_blank\" rel=\"noreferrer noopener\">Download the e-book: Transform ISV Applications with Intelligent AI Personalisation<\/a>&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/info.microsoft.com\/ww-ondemand-what-is-new-in-isv-success-ai-benefits-and-more.html?lcid=en-us\" target=\"_blank\" rel=\"noreferrer noopener\">Watch the webinar: What is New in ISV Success \u2013 AI Benefits and More<\/a>&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/partner.microsoft.com\/en-gb\/partner\" target=\"_blank\" rel=\"noreferrer noopener\">Join the Microsoft AI Cloud Partner Programme<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/retail\/2025\/01\/09\/ai-powered-retail-elevating-customer-experience-and-operational-efficiency\/\" target=\"_blank\" rel=\"noreferrer noopener\">AI-powered retail: Elevating customer experience and operational efficiency<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"about-the-author\">About the author<\/h2>\n\n\n<p>As a Partner Development Manager at Microsoft, James specialises in strategic engagement with software development companies in the retail and consumer goods sectors. He focuses on identifying and accelerating high-potential partners, particularly those innovating with AI and disruptive technologies. James plays a key role in enabling partner growth through co-innovation, go-to-market strategy and ecosystem alignment.<\/p>","protected":false},"excerpt":{"rendered":"<p>Explore how retail-focused software development companies are reshaping the industry with Microsoft and generative AI.<\/p>\n","protected":false},"author":845,"featured_media":71008,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"_classifai_error":"","_classifai_text_to_speech_error":"","footnotes":""},"categories":[145],"post_tag":[175,128,325,259,334],"content-type":[],"coauthors":[2298],"class_list":["post-70734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail","tag-ai","tag-azure","tag-customer-experience","tag-employee-engagement","tag-retail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AI in retail: the opportunity for software development companies - 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