AI Risk Mitigation in Retail- Safeguarding Customer Experience and Compliance

Artificial intelligence is reshaping the way retailers connect with customers, manage operations, and drive growth. Personalized shopping journeys, real-time inventory optimization, and intelligent pricing models are now common features of the modern retail experience. Yet behind this promise lies a series of challenges that, if ignored, can lead to compliance violations, reputational damage, and customer distrust. The conversation around AI in retail can no longer focus solely on innovation. It must include responsible adoption, with risk mitigation at the center. Done right, AI governance not only protects businesses from legal and ethical pitfalls but also enhances the very thing retailers strive for—customer loyalty. Why Risk Mitigation Matters in Retail AI Retail thrives on trust. Every interaction, from an online recommendation to an in-store payment—depends on a customer’s confidence in the brand. When AI systems misfire, the consequences ripple quickly: A pricing alg...