The future of retail: fusefabric’s breakfast event unpacks AI, virtual influencers, and emotional engagement
Last month, fusefabric hosted an inspiring breakfast event in Barcelona, assembling digital leaders to unpack the evolving role of AI across the retail landscape. Set against an intimate backdrop, the morning brought together a dynamic conversation on the transformative power of AI – from next-generation product discovery to the rise of virtual personalities – and explored how retailers can innovate at the intersection of technology, emotion, and customer experience.
Fireside exchange: How AI is redefining discovery and engagement
Led by Simon Hamblin and PJ Jassal, Co-Founders of fusefabric, the conversation featuring Giles Smith, former CTO at Burberry and Selfridges, dived straight into personal “AI awakening” moments. Giles shared how interacting with tools like ChatGPT shifted their perspective on what’s possible, recounting experiences of witnessing entire A-level essays drafted in seconds and observing how generative AI has captivated audiences across age groups.
The discussion quickly turned to the realities of AI-powered discovery, where retail behaviours are changing at a breathtaking pace. Giles highlighted how fashion brands are harnessing social trends from platforms like TikTok to inform AI-driven product recommendations, transforming product discovery into an intuitive, conversational experience. As they noted, the traditional funnel of static online catalogues is giving way to dynamic, AI-curated journeys - a shift with profound implications for retailers’ brand control and storytelling.
Virtual influencers: fictional celebrities generating real revenue
A standout moment of the morning was a deep dive into the world of virtual influencers. Attendees were captivated by the story of “Magalu” – a digital character from Brazil who has amassed millions of followers and generated millions in revenue through partnerships with well-known brands. The conversation unpacked how these virtual personalities aren’t just marketing novelties, but fully-fledged revenue channels reshaping what it means to build relationships with consumers. As one guest remarked, virtual influencers present an opportunity to create a new layer of brand engagement that feels authentic and scalable – if approached responsibly.
The group also debated the potential risks from ethical concerns to brand dilution, highlighting the need for thoughtful integration of AI personas into retail strategies.
AI, emotion, and the human touch: where does it end?
As the conversation turned more speculative, they prompted honest discussion about the human need for connection and how AI might one day complement, rather than replace, human relationships. One attendee reflected on the delicate balance between automation and authenticity, emphasising that retailers must safeguard the human essence of their brands even as they adopt AI-driven efficiencies.
Opportunities and responsibilities ahead
Throughout the breakfast, several themes emerged that retail leaders should note:
Conversational commerce: The shift towards chat-based discovery is accelerating, and brands that adapt will win customer loyalty.
Virtual brand ambassadors: Fictional influencers can deliver outsized reach and engagement, but must be deployed carefully to avoid alienating customers.
Emotional AI: From personalised recommendations to AI-powered clienteling, leveraging AI to understand and respond to human emotion is the next big frontier.
Ethical innovation: As AI capabilities advance, brands need strategies to ensure responsible use that protects customer trust.
In a world awash with AI hype, fusefabric’s breakfast offered a grounded, thought-provoking look at what’s next for retail. The conversations made clear that the future belongs to those willing to experiment boldly, but always with a human-first mindset.