Improved execution, not increased spends drive ecom gains amid AI shift: Report

A new industry report says ecommerce brands that improved execution, rather than increased spending, outperformed competitors in 2025 amid rapid adoption of AI and growing digital complexity.

The Agentic Commerce Shift Report 2026 by Netcore examines how retailers are restructuring growth strategies by moving away from campaign-led models and channel-first models toward always-on execution systems designed around profit outcomes. The findings draw on performance patterns from large retailers and digital-first brands.

The report noted, “2025 didn’t slow ecommerce; it exposed the limits of old growth models. Funnels multiplied, journeys expanded, and AI scaled, but conversion often didn’t follow. The gap wasn’t intelligence. It was execution.”

Leading companies are redefining online discovery as a sales function rather than a top-of-funnel marketing activity. It also points to a shift from periodic campaigns to continuous, agentic customer journeys that adapt in real time to user behaviour.

The study identifies six structural changes shaping ecommerce performance heading into 2026, citing examples from companies including Walmart, Restaurant Equippers and Fabindia.

Among its findings, profitability challenges are described as system-level issues rather than a lack of tools. The report says gains were seen when companies reduced fragmented AI tools and assigned clear accountability tied to profit metrics.

Revenue losses were found to occur more frequently during product discovery than at checkout, with guided search experiences improving conversion rates in some cases.

In sectors with short shelf life, retailers such as Morrisons improved margins by using AI-driven pricing systems instead of manual markdown processes.

Language capabilities were treated as infrastructure rather than translation, with Meesho cited for using vernacular and voice-based journeys to increase conversion.

Planning around “shopping missions” rather than marketing channels helped retailers better manage assortment and pricing strategies.

Continuous, AI-triggered engagement outside campaign periods generated incremental profit, with brands such as Fabindia, Crocs and Andamen referenced as examples.

The report states that while AI adoption accelerated in 2025, measurable improvements occurred only when AI systems operated on shared data with defined ownership and accountability.

The report reflects operational changes already underway and is aimed at ecommerce executives and digital teams adapting to increased use of AI-driven systems.