Home Depot, Wayfair, and PayPal Share Their Vision for the Future of Agentic AI - Insights from NRF 2026

Three Major US Retailers Reveal Agentic AI Strategies at NRF 2026

3 retailers on their role in agentic AI experiences

Executives from Home Depot, URBN and Wayfair discussed during NRF how companies remain the merchant of record by maintaining brand voice and handling customer service and other tasks.

On January 12, 2026, at "NRF 2026: Retail's Big Show"—the largest retail industry event in the US—executives from Home Depot, Wayfair, and PayPal took the stage to discuss their agentic AI initiatives. The panel discussion "The rise of agentic commerce: What AI means for the future of shopping" featured Home Depot CIO Angie Brown, Wayfair CTO Fiona Tan, and PayPal VP of Agentic Commerce Mike Edmonds.

Agentic AI (autonomous AI) refers to AI agents that can autonomously execute "discovery, comparison, and purchase" on behalf of users. During Cyber Week 2025, AI agents were involved in 20% of all orders, generating $67 billion in sales worldwide.

Background and Industry Trends

Agentic commerce is no longer just a buzzword. According to IDC forecasts, agentic AI will account for 10-15% of IT spending in 2026, reaching 26% (approximately $1.3 trillion) by 2029.

At NRF 2026, Google announced the "Universal Commerce Protocol (UCP)," promoting standardization of seamless purchasing experiences through AI agents. More than 20 companies including Walmart, Target, Best Buy, Home Depot, and Macy's have announced participation. Meanwhile, Microsoft announced Copilot Checkout, enabling payment completion within conversational interfaces.

Against this backdrop of rapidly developing technological infrastructure, retailers are being forced to make strategic decisions about "how to approach agentic AI."

Agentic AI Strategies of the Three Companies

Home Depot: Building Project-Support AI

Home Depot CIO Angie Brown described the company's agentic AI strategy: "The goal is to learn about agentic experiences that resonate with both customers and associates (store staff)."

The company aims for an AI experience that goes beyond simple product search. They're building "project-support" experiences where AI supports customers from the planning stage to completion of DIY projects, helping them understand projects more deeply. For example, if you say "bathroom remodel," the system provides consistent guidance from listing necessary materials and tools to explaining work procedures.

Wayfair: Transitioning to Conversational Commerce

Wayfair CTO Fiona Tan stated that they are "focused on learning alongside consumers." Agentic AI, which barely existed a year ago, has now created a situation where many customers complete their research and even transactions off-site.

Tan addressed the transformation of the search experience: "For the past 20 years, the search experience has been constrained. You type a few words into a search bar, set a few filters, and click a few times on the site. Now, through conversational interfaces, experiences beyond product discovery are possible."

Through integration with Google Cloud Shopping Graph, Wayfair enables AI agents to access their vast furniture and interior catalog, delivering personalized recommendations based on customer preferences.

PayPal: Providing Payment Infrastructure Centered on "Trust"

PayPal VP of Agentic Commerce Mike Edmonds expressed the view that agentic AI is unlikely to completely replace traditional digital experiences. "Agents may handle the most cumbersome or time-consuming transactions, but the bulk of shopping will remain a human experience."

However, Edmonds pointed out that "the transition from discovery to checkout is an entirely different challenge." PayPal's policy is to provide a secure payment foundation for the agentic commerce era with "trust" as its core value. The company has integrated with Microsoft's Copilot Checkout, enabling payment completion within AI chat.

Furthermore, Edmonds emphasized the importance of "democratizing access to agentic AI for small and medium businesses." While major retailers advance their investments, he outlined support for smaller operators who tend to be left behind due to lack of talent and capital.

Impact and Practical Applications for E-commerce Operators

Three Actions to Consider Immediately

Supporting Google's UCP and Microsoft's Copilot Checkout requires structured product data. While Shopify merchants automatically become Copilot Checkout compatible, independent e-commerce sites need to respond urgently. Prepare product attributes (size, color, material, inventory status) in machine-readable format and build systems that can respond to queries from AI agents.

According to IBM research, 72% of customers still shop at physical stores, with 45% seeking AI assistance. It's important to incorporate conversational interfaces into omnichannel strategies and design seamless experiences like "consult via chat → confirm in-store → purchase online."

As PayPal's Edmonds points out, the reality is that "much of shopping will remain a human experience." Establish a hybrid AI-human response system and maintain mechanisms for humans to handle complex inquiries and emotional cases.

Implementation Timeline and Market Forecasts

UCP has begun early deployment in the US, with international expansion expected in the second half of 2026. McKinsey forecasts that agentic commerce could drive $5 trillion in global retail sales by 2030.

Summary

Home Depot, Wayfair, and PayPal are each approaching agentic AI with different strategies. Home Depot focuses on project-support experiences, Wayfair on transitioning to conversational commerce, and PayPal on providing payment infrastructure centered on trust.

What they share in common is a realistic perspective that "AI complements rather than completely replaces humans." In Edmonds' words, "there are many parts of shopping that people love, and that will continue for the foreseeable future."

For e-commerce operators, the key is to immediately advance product data structuring and API support, preparing connections to Google's and Microsoft's agentic commerce platforms. 2026 is a "year of preparation," and delays in response will significantly affect future competitive advantage.