The retail landscape is shifting beneath our feet. After spending three days at the National Retail Federation’s Big Show last month, I can tell you firsthand that artificial intelligence isn’t just coming to your shopping experience—it’s already arrived and evolving rapidly.
Honeywell and Google Cloud announced a partnership this week that exemplifies this transformation, unveiling an AI-powered retail solution designed to personalize in-store shopping experiences. The technology marries Honeywell’s hardware expertise with Google Cloud’s AI capabilities to create what the companies are calling a “frictionless retail experience” for both shoppers and store associates.
“What’s fascinating about this partnership is how it bridges the physical-digital divide in retail,” says Carrie Walsh, former SVP of Marketing at PetSmart, whom I interviewed about the announcement. “Retailers have struggled to bring the personalization of online shopping into physical stores. This solution addresses that gap directly.”
The collaboration integrates Honeywell’s mobile computers and scanners with Google Cloud’s Vertex AI platform and Retail Search capabilities. Store associates equipped with these devices can access AI-powered product information, inventory data, and customer preferences in real-time, essentially transforming them into informed shopping assistants capable of providing personalized recommendations.
According to Honeywell’s press release, the solution will be commercially available in early 2025, though select retailers are already piloting the technology.
During a demonstration I observed, a store associate used the Honeywell device to instantly locate a specific shirt size for a customer by simply taking a photo of the item. The system immediately displayed inventory information, similar styles, and even suggested complementary items based on the customer’s previous purchases.
The implications extend beyond customer service. McKinsey’s recent “State of AI in Retail” report indicates that retailers implementing advanced AI solutions could see productivity improvements of 25-30% and revenue increases of 5-10% from enhanced personalization. These numbers align with what David Wilkinson, President of Honeywell’s Productivity Solutions and Services business, emphasized when announcing the partnership.
“In today’s competitive retail environment, creating exceptional customer experiences while improving operational efficiency is paramount,” Wilkinson stated. “Our collaboration with Google Cloud delivers powerful AI capabilities to store associates, enabling them to provide highly personalized service.”
The technology addresses several pain points in modern retail. For customers, it reduces the frustration of not finding products or receiving uninformed assistance. For retailers, it helps bridge the expertise gap as they face increasing staff turnover rates—a challenge that’s reached 60% annually according to the National Retail Federation.
Google Cloud’s involvement brings substantial AI muscle to the partnership. “Retail is at an inflection point where AI can transform how customers shop and how retailers operate,” said Carrie Tharp, VP of Strategic Industries at Google Cloud. “By combining Google Cloud’s AI and search capabilities with Honeywell’s retail solutions, we’re helping retailers create more intuitive, helpful experiences for both shoppers and store associates.”
The timing is strategic. As e-commerce continues to grow, brick-and-mortar retailers are searching for ways to enhance in-person shopping experiences. A recent Deloitte study found that 67% of consumers still prefer to shop in physical stores, but their expectations have been shaped by the convenience and personalization of online shopping.
There are legitimate concerns about privacy and data collection that accompany such technologies. When I questioned Honeywell representatives about this, they emphasized that the system operates within retailers’ existing customer data frameworks and complies with privacy regulations, though the specifics of implementation will vary by retailer.
From my perspective, having covered retail technology for nearly a decade, this partnership represents a significant step toward what I call “convergent retail”—where digital capabilities enhance rather than replace physical experiences. Unlike many AI retail announcements that focus exclusively on back-end operations or purely online experiences, this solution targets the critical in-store moment of customer interaction.
The retail industry’s history is littered with technology solutions that promised transformation but failed to deliver meaningful results. What makes this partnership potentially different is its focus on enhancing human interaction rather than replacing it. Store associates remain central to the experience but are empowered with AI capabilities that make them more effective.
As we look toward 2025, when this solution is expected to be widely available, retailers will need to consider not just the technology implementation but also the training and cultural changes required to maximize its potential. Technology alone rarely solves complex business challenges—it requires thoughtful integration with people and processes.
The Honeywell-Google Cloud partnership signals a maturing approach to retail AI—one that recognizes the continued importance of physical stores while acknowledging that digital transformation is essential to their future. For consumers, it promises more helpful, informed shopping experiences. For retailers, it offers a pathway to differentiation in an increasingly competitive landscape.
Whether this particular solution fulfills its promise remains to be seen, but the direction is clear: AI isn’t just changing what we buy, but fundamentally how we shop.
