By: Ernesto Cuevas, Chief Innovation Officer, Dewpoint
Practical Guidance for Michigan Retailers Exploring Artificial Intelligence
From family-owned downtown storefronts to multi-location retailers serving communities across Michigan, business owners are continually looking for ways to improve efficiency, better serve customers, and remain competitive. Labor challenges, changing customer expectations, and increasing operational costs continue to place pressure on retailers of all sizes.
Increasingly, Artificial Intelligence (AI) is becoming part of the solution. Retailers are finding practical ways to use the technology to improve operations, strengthen customer engagement, and gain efficiencies across the business.
What was once considered a technology reserved for large national chains is now accessible to independent retailers through applications many businesses already use every day. From creating marketing content and improving customer communications to supporting inventory planning and operational analysis, AI is quickly becoming a practical tool that helps retailers do more with less.
The opportunity is significant. However, as with any business technology, AI should be adopted with a clear understanding of both its benefits and its risks.
New technologies often arrive with a mix of excitement and uncertainty, and AI is no exception. However, AI is not a future trend waiting to arrive. It is already embedded in many of the applications, platforms, and business processes retailers use every day.
For most Michigan retailers, that decision has already been made for them. AI is running quietly inside the point-of-sale system, the marketing platform, or the scheduling tool they use every day.
Retailers should not be afraid to embrace AI. Those that learn to leverage it effectively will gain advantages in efficiency, customer engagement, and decision-making. The reality is that most retailers are already using AI in some form, whether they realize it or not. The key is understanding where it is being used, what business value it provides, and how the providers and partners supporting those solutions are handling and protecting your data.
The retailers that realize the greatest value from AI will not necessarily be the first to implement it. They will be the organizations that implement it intentionally.
Focus on Outcomes, Not Technology
Many conversations about AI begin with the technology itself. Successful implementations start somewhere else: with a business objective.
Organizations occasionally fall into what I call "technology lust": adopting new tools because they are exciting rather than because they solve a meaningful business challenge. Over the years, I have seen organizations invest heavily in technology only to discover they never clearly defined the business problem they were trying to solve. AI is powerful, but its value is realized only when it is aligned to a clear business objective. Retailers should focus less on keeping up with the latest trend and more on identifying where AI can improve efficiency, customer experience, or decision-making.
For some retailers, AI may help reduce the time spent creating marketing materials or product descriptions. For others, it may support inventory forecasting, customer service, or operational planning. The most valuable use cases are often the simplest, addressing tasks that consume time and resources while delivering measurable business benefits. In our experience, marketing and customer service are often the areas that deliver the quickest return. Our own team uses AI every day to improve efficiency, create content, and support client engagement, and we continue to find new opportunities to apply it responsibly.
AI does not need to transform every aspect of a business to be worthwhile. If it helps employees operate more efficiently, improves communication with customers, or enables management to make more informed decisions, it is already creating value.
Understand How Your Data Is Protected
One of the most important considerations when adopting AI is understanding how information is being handled.
Customer information, employee records, financial data, pricing strategies, and other sensitive business information should be carefully considered before being entered into AI systems.
Retailers should also take the time to understand how their technology providers manage and protect that information. Ask simple questions: Where is the data stored? How is it protected? Is it used to train AI models? What safeguards are in place?
You do not need a technical background to ask these questions. A reputable provider should be able to explain, in straightforward terms, how your information is secured and how it is being used.
A simple rule of thumb is:
If you would not post it publicly, think carefully before entering it into an AI platform.
People Remain the Most Important Control
Technology is only one part of successful AI adoption.
Employees should understand which tools are approved, what information should never be shared, and when human review is required. For many retailers, a brief discussion and a few clear guidelines are enough to establish expectations and reduce risk. Make sure employees understand what is and is not acceptable.
Cybercriminals Are Using AI Too
While retailers are exploring how AI can improve efficiency, cybercriminals are using the same technology to improve their attacks.
AI-generated phishing emails, fraudulent payment requests, and social engineering scams are becoming increasingly sophisticated. These communications often appear more professional and more convincing than traditional scams.
Retail businesses are attractive targets because they process financial transactions, work closely with vendors, and operate in fast-paced environments where quick decisions are often required.
One of the most effective defenses remains awareness. Employees should feel comfortable slowing down, questioning unusual requests, and verifying information before taking action.
A simple phone call to confirm new payment instructions or banking changes can prevent a costly mistake.
The Fundamentals Still Matter
Despite the excitement surrounding AI, cybersecurity fundamentals remain unchanged.
Strong passwords, multifactor authentication, controlled access to systems, and regular security reviews continue to provide some of the most effective protection available. The same security practices that protect email, accounting platforms, and point-of-sale systems should also be applied to AI tools.
Innovation and security are not competing priorities. They are complementary business objectives.
Keep Human Judgment at the Center
Perhaps the most important lesson for retailers is that AI should enhance decision-making, not replace it.
AI can help generate ideas, summarize information, draft content, and improve productivity. What it cannot replace is experience, accountability, business judgment, and the relationships retailers build with their customers.
Retail has always been a people-centered business. Technology can improve efficiency, but it cannot replace trust.
The organizations that benefit most from AI will be those that view it as a tool that empowers employees rather than one that attempts to replace them.
Looking Ahead
Michigan's retail community has always been defined by resilience, innovation, and strong customer relationships. Artificial Intelligence represents another opportunity to improve operations, enhance customer experiences, and strengthen competitiveness.
You will not get points for being first. You will get them for using it better.
AI is here to stay, and its capabilities will continue to evolve. Retailers that embrace it thoughtfully will be positioned to improve efficiency, enhance customer experiences, and remain competitive in a rapidly changing marketplace.
You do not need to become an AI expert to take advantage of these technologies. Start with a clear business objective, work with trusted partners, understand how your data is being protected, and apply the same diligence you would to any other important business system.
Like any successful employee, AI performs best when provided with guidance, oversight, and clear expectations. Retailers should not fear the technology, nor should they blindly trust it.
The goal is to embrace AI with awareness, accountability, and purpose.
Author Bio
Ernesto Cuevas is Chief Innovation Officer at Dewpoint, where he helps organizations evaluate emerging technologies, strengthen cybersecurity programs, and align innovation initiatives with business objectives. He works with public and private sector organizations throughout the Midwest to improve operational effectiveness while reducing technology and cybersecurity risk.
🔗 Article also featured in: Michigan Retailer Magazine October/November 2026 Issue