AI adoption and cyber exposure set the agenda for retail in 2026

itim Group

Retail and e-commerce businesses enter 2026 facing a clear dual reality. Artificial intelligence is reshaping how consumers discover and purchase products, while cyber risk and data privacy pressures are increasing in scale and complexity.

Over the past year, online retail platforms have experienced sustained cyber targeting. A significant share of users encountered web-based threats, and on-device attacks also increased. Corporate systems within the retail segment saw a notable rise in ransomware detections compared with previous periods. Many of these incidents involved widely available tools repurposed for malicious encryption activity, making detection more difficult and response more resource intensive.

Phishing activity remains persistent and broad in scope. Fraudulent websites and credential theft attempts have targeted consumers, payment channels and logistics platforms.

At the same time, AI adoption across retail functions is accelerating. Businesses are using AI and machine learning to personalise product recommendations, optimise pricing, forecast demand and automate inventory decisions. More advanced systems are beginning to manage elements of the purchasing journey with limited human input.

itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.

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