This report examines how artificial intelligence is transforming the retail industry while introducing new cybersecurity risks. ThreatLabz found that AI transactions in Retail & Wholesale increased 193% year over year to 49 billion AI/ML transactions, reflecting rapid adoption across customer engagement, personalization, inventory management, and operational workflows. It highlights how AI expands the attack surface through overprivileged assistants, AI-powered phishing, insecure integrations, and unauthorized access to customer and payment data. The report recommends securing the AI lifecycle through least-privilege access, unified DLP, CASB, posture management, continuous visibility, encrypted traffic inspection, and Zero Trust controls to balance innovation with data protection and regu

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