Beyond the Buzz: How AI Is Rewriting the Rules of Grocery Operations

From Technology to Teamwork

Artificial intelligence has become one of the most talked-about subjects in retail, but for many operators, the real question is not what AI can do, but how it fits naturally into the rhythm of store operations. During a recent discussion at Progressive Grocer’s Grocery Impact event in Orlando, Gelson’s Markets CEO Ryan Adams and Upshop SVP of Strategic Accounts Lauren Kennedy offered a grounded view of how AI is being implemented across stores and how it is helping teams focus on what matters most.

Adams described AI not as a replacement for experience or intuition, but as a new layer of intelligence that helps remove operational friction. “We’re entering a new revolution of where we’re able to get data from so we can make better decisions,” he said. “AI allows people to focus their attention in the right places.”

That balance between data-driven precision and human judgment has guided Gelson’s strategy from the start.

Gelson’s Experiment With Everyday AI

Gelson’s Markets has been piloting Upshop’s AI-powered platform in several stores, and early feedback from employees has been overwhelmingly positive. The technology simplifies production planning and inventory management by predicting demand in real time, allowing store teams to prepare exactly what customers are likely to buy each day.

The results have been tangible. One store director told Adams that the number of unsold sandwiches and loaves of bread has dropped dramatically, from a full basket of leftovers to just a few items daily. Those kinds of quiet improvements, less waste and better efficiency, are where the impact of AI becomes most visible.

Adams noted that the decision to work with Upshop was as much about culture as capability. “Being able to leverage intelligence, artificial or otherwise, means focusing on the right things and helping remove friction points,” he said. “Because employees can be focused in the right areas, whether it’s production planning, task management, or ordering.”

Data That Works for People

Lauren Kennedy explained that Upshop’s approach centers on adaptive task management, using AI to help store teams know what needs attention, when, and why. “With the data we have, how do we make sure we’re assigning the task that’s most meaningful to that store or department at that moment?” she said.

In practice, that means less time spent guessing and more time spent executing. Managers no longer have to rely on static schedules or manual counts to decide what to prioritize. Instead, the system continuously evaluates store data to generate dynamic, store-specific action lists.

This approach is especially valuable in grocery, where freshness, timing, and labor allocation are all deeply connected. By aligning data with human routines, Upshop’s system turns information into foresight.

Keeping the Human Element at the Center

Both Adams and Kennedy emphasized that AI’s success depends on the people using it. Technology must simplify work, not complicate it. They also cautioned against chasing tools that sound exciting but lack a clear operational purpose.

Kennedy explained that while data provides the science, decision-making still requires art. “It should inform decisions and strategy,” she said. “It shouldn’t dictate them. That’s the human piece we can’t afford to lose.”

That mindset has shaped Gelson’s broader technology adoption strategy. The company is also piloting Microsoft Copilot in a secure, internal environment to give employees a safe space to experiment with generative AI while protecting sensitive data. The goal is to help teams understand how these tools can save time rather than create confusion.

“Success depends on transparency, communication, and showing teams how AI can help them do their jobs better,” Adams said. “If you can demonstrate that value clearly, adoption follows.”

Lessons for Retailers Considering AI

The conversation at Grocery Impact underscored several lessons for retailers exploring AI adoption.

First, start with a specific problem to solve. At Gelson’s, the focus was on reducing waste and improving production planning, two areas where technology could produce immediate results. By starting there, the company showed employees measurable benefits early on, building trust and momentum.

Second, make the technology intuitive. Employees embraced Upshop quickly because the interface felt familiar and the benefits were immediate. That ease of use ensures the system becomes part of everyday routines instead of an added burden.

Third, keep communication open. When store teams understand how AI decisions are made and see the positive effects in their workflow, skepticism fades and engagement grows.

Finally, align every new tool with company values. For Gelson’s, that means maintaining its reputation for exceptional service and fresh quality. For other retailers, the goal may differ, but the principle is the same: AI should strengthen the human side of the business, not weaken it.

A Smarter, More Human Future

AI is changing how retailers manage stores, but it is also redefining how people think about their roles within those stores. When technology handles the repetitive work of forecasting and scheduling, associates gain time for the tasks that truly define a great shopping experience, like connecting with customers, maintaining presentation standards, and driving local engagement.

Gelson’s and Upshop are showing that the path forward is not about automation for its own sake. It is about creating a more responsive, less wasteful, and more human retail environment where data empowers rather than replaces.

The next wave of AI in grocery will not be judged by how advanced the algorithms are, but by how well they help people do their best work.

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