Artificial Intelligence (AI) is transforming industries worldwide, and Australia is quickly emerging as one of its most active adopters. Ranked 16th among 36 countries in Stanford’s AI Vibrancy Index, Australia benefits from strong cloud infrastructure and high digital maturity especially within retail and fashion.
These sectors are embracing AI not just for operational efficiency but also for crafting richer customer experiences. From logistics to personalisation, AI is proving vital in both online and physical retail. At the upcoming Global Sourcing Expo, to be held in Sydney from 17-19 June, industry leaders will discuss how this digital shift is reshaping commerce.
Jenn Donovan, Director of Social Media & Marketing Australia and a featured speaker at the Expo, sees AI as a game-changer. “AI gives marketers in retail a second set of hands and sometimes a second brain,” she notes. It streamlines repetitive tasks while delivering sharp audience insights, enabling businesses to work smarter. Importantly, Donovan highlights AI's accessibility: “These tools aren’t just for big companies. Small, time-poor business owners can use them easily.”
Content creation is often the first step for smaller firms adopting AI. From blog and social media posts to product descriptions and online magazine articles, platforms like ChatGPT, Canva, Opus Clip and Notion AI are now part of the modern retail toolkit. Meanwhile, eCommerce in Australia has seen explosive growth since the pandemic. With 2020 online sales hitting AU$50.46 billion a 57 per cent year-on-year jump the sector hasn’t slowed. By 2024, eCommerce sales reached AU$56.07 billion, reflecting a lasting shift in consumer habits.
Olivia Carr, Founder and CEO of Shhh Silk and fellow Expo speaker, has seen this transformation firsthand. “The past five years have shifted eCommerce from transactional to transformational,” she says. “Customers now seek brands that align with their values and provide emotionally resonant experiences.”
Shhh Silk has responded by evolving beyond product-based selling, instead offering wellness-focused rituals. Carr believes that AI, when used thoughtfully, supports this evolution by enhancing storytelling and service delivery. “It allows small businesses to elevate the customer journey without losing authenticity.”
Still, challenges remain. Operational costs, global competition and evolving customer expectations make it difficult for some businesses to keep pace. Carr also stresses the importance of value-driven growth: “To scale social impact authentically, brands must define a mission, embed it in every touchpoint and stay accountable.”
As AI technology advances, it will continue to support more personalised, efficient, and strategic retail operations. For Australian retailers especially small and mid-sized players success will hinge on their ability to blend innovation with integrity, ensuring AI enhances experience without compromising core values.
