Macy’s is embedding artificial intelligence directly into its core retail systems to accelerate decision-making and enhance customer experiences, according to senior director of engineering Murali Murugan. The company’s AI-first strategy, revealed this week, focuses on redesigning workflows to make every interaction more relevant and responsive by default, rather than simply adding AI as an overlay to existing processes, technologyreview.com reports.
This approach involves integrating AI into personalization, search, operational planning, and software development systems. Murugan explained that the goal is to compress the time between receiving data signals and taking action, enabling Macy’s to respond to customer behavior and supply chain dynamics in real time. Early AI applications targeted high-impact areas such as search recommendations and customer engagement, which quickly demonstrated measurable improvements in conversion rates and operational efficiency.
Macy’s strategy reflects a broader shift in retail from isolated AI pilots to fully integrated intelligent systems. This move aims to address challenges in a fragmented and highly competitive market by making AI an operating philosophy rather than an add-on. By embedding intelligence into core functions, Macy’s is positioning itself alongside other retailers adopting similar AI-driven transformations to optimize inventory management and accelerate software delivery.
Murali Murugan’s comments on Macy’s AI-first approach were published on June 25 by technologyreview.com, highlighting how legacy retailers are evolving their technology strategies to stay competitive in the AI era.