Retail Technology Show 2026 preview flags AI as powerful enabler but sustainability is key

AI is delivering tangible results for retailers, with the focus now shifting towards sustainability of that growth. So says Yathu Kanagaratnam, Head of Technology and AI at online fashion retailer Goddiva.

Kanagaratnam was speaking following his involvement in a Retail Technology Show 2026 discussion panel, ahead of the two day event taking place in London next month.

During this he noted that moving from basic search to AI driven recommendations has almost doubled conversion for Goddiva from 1.4% to 2.5% and delivered £1 million in sales via chatbot journeys.

Returns - once an eye watering 80% - are falling thanks to several measures including AI sizing tools. But while AI build costs are tumbling, daily operating costs can run to £4,000. Efficiency gains must be balanced with higher operating costs from data intensity.

In a LinkedIn post, he said: “It’s clear that AI is already delivering real impact - from improving conversion to reducing returns - but the conversation is now shifting towards sustainability of that growth, especially around data, infrastructure, and operating costs.”

He added: “The next phase isn’t just about adopting AI, but about using it in a way that is commercially viable and truly enhances the customer experience. Looking forward to continuing these conversations at Retail Technology Show 2026.”

Reimagining online fashion

Goddiva has developed an AI virtual try-on experience.

Designed initially for the online retailer’s VIP customers, this allows users to upload their own image and visualise themselves wearing Goddiva styles across both collection pages and individual product pages.

This is not a simple overlay or face-based visual, the company says. The system analyses body structure, proportions, and size data to simulate how a garment will fit, drape, and sit on the customer’s unique body shape.

“This is about confidence and clarity,” says Kanagaratnam. “When customers can see themselves in a dress - not a model, not an avatar, but them - they can make better decisions. That means fewer returns, less frustration, and a far better overall experience.”

Goddiva is also developing an AI powered size predictor, which will use uploaded images and body analysis to guide customers toward the most suitable size.

It also reports that AI video generation is under production. This feature, scheduled to be available in the summer, will allow customers to see how fabrics move and catch the light on their own digital likeness in motion, with the aim of further strengthening fit accuracy and customer understanding.

“This is another major step in how we reimagine online fashion,” Kanagaratnam says. “It’s about reducing disappointment, respecting the customer’s time, and building a smarter, more responsible way to shop for occasionwear.”

2026 RTIH Innovation Awards

AI will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.