How AI and Agentic Commerce Are Transforming Retail – Insights from Elaine Kwan of Kwontified
In our latest Dauntless XR podcast episode, co-founders Lori-Lee and Sofia sat down with Elaine Kwan, Managing Partner and Co-founder at Kwontified, to unpack how AI is fundamentally reshaping the retail industry. From the rise of agentic commerce to the dawn of Generative Engine Optimization (GEO), Elaine shared actionable insights for brands navigating this fast-evolving landscape.
The State of Retail: AI Disruption and Opportunity
Elaine kicked off the discussion by highlighting how AI is creating both chaos and opportunity in retail. With AI-powered tools scraping competitor data and enabling instant checkout experiences, the industry is experiencing rapid transformation. Notably, the adoption of AI in retail is outpacing many other sectors due to the immediate gains for online sellers.
What Is Agentic Commerce?
Agentic commerce refers to AI agents that not only recommend products but also complete purchases on behalf of consumers. Platforms like ChatGPT are already piloting instant checkout features, and this trend is expected to expand to major e-commerce ecosystems like Shopify. This shift means that the traditional brand-controlled website experience is being replaced by AI-driven interfaces, making it essential for brands to adapt quickly.
From SEO to GEO: The Next Era of Online Visibility
Elaine introduced the concept of Generative Engine Optimization (GEO), which is poised to replace traditional SEO. GEO focuses on ensuring that AI agents can read, understand, and cite a brand’s content as the authoritative source. Clean, structured data and an API-first, headless commerce approach are now prerequisites for visibility in AI-powered shopping environments.
The Creative and Technical Pivots Brands Need Now
Elaine emphasized that brands must make two key pivots:
· Technical Pivot: Become “agent-ready” by optimizing data, embracing headless commerce, and enabling AI agents to transact directly with inventory and payment systems.
· Creative Pivot: Build a human experience moat by crafting unique, memorable customer experiences and leveraging AR/VR content to foster community and loyalty.
The Role of Friction and Trust in the AI Retail Era
A recurring theme was the importance of trust and intentional friction in the customer journey. Elaine cited Costco as a brand that uses friction—like membership requirements and limited online browsing—to reinforce value and loyalty. She cautioned against over-personalized dynamic pricing, which can erode trust, and advised brands to use AI to enhance, not replace, authentic customer relationships.
Actionable AI Use Cases for Retailers
Elaine recommends brands deploy AI in areas such as: - Predictive inventory modeling - Personalized fulfillment - Content creation and optimization - Hyper-personalized marketing (while maintaining trust) - Cross-channel analytics for a holistic view of customer engagement
Looking Ahead: The Future of Advertising and Community
The conversation concluded with predictions that digital advertising will shift from traditional ads to instantly shoppable content, and that brands will need to focus on customer lifetime value. Building strong communities and creative moats will be crucial as AI-generated content floods the digital landscape.
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Top Listener FAQ from this episode
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A: Agentic commerce is a new paradigm where AI agents not only recommend products but also complete purchases for consumers, often bypassing traditional brand websites.
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A: Generative Engine Optimization (GEO) is about making your brand’s content readable and authoritative for AI agents, not just search engines. It requires structured, clean data and often API-driven architectures.
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A: While AI enables dynamic pricing, Elaine advises caution. Over-personalized pricing can erode consumer trust. Focus on using AI for operational efficiency and personalized experiences instead.
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A: Predictive inventory, personalized fulfillment, automated content creation, and smarter marketing are all high-impact AI applications for retailers.
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A: Build trust through transparent practices, leverage creative and community-driven experiences, and use friction strategically to add value to the customer journey.
