AI Checkout, Shrink Reduction, and the Future of Front-End Optimization

Frictionless checkout has become one of the most discussed topics in retail technology. But for enterprise retailers, the real question is not whether checkout can be frictionless. It is whether it can perform consistently under pressure. Checkout is where throughput, labor efficiency, compliance, and shrink converge. It is the operational control point of the store. In a conversation hosted by Emily Crowe, Editor-in-Chief at Progressive Grocer, Matt Redwood, VP Retail Technology Solutions at Diebold Nixdorf, joined Zara Ngouen, VP Information Technology at Lidl US, to examine what modern AI-enabled checkout requires at scale. The discussion explores how retailers are applying AI-powered age verification to reduce associate interventions while strengthening regulatory compliance. It addresses how real-time behavioral analytics can proactively identify risk patterns and support shrink reduction strategies. And it examines how retailers are redesigning front-end environments to balance automation with human oversight, preserving both efficiency and customer trust. A key theme throughout the conversation is that frictionless checkout is not about removing people or layering in disconnected technology. It is about intelligent retail infrastructure. AI, software, hardware, and services must work together to optimize front-end performance across diverse store formats. As labor volatility continues and cost pressure intensifies, front-end optimization has become a strategic priority. Retailers are rethinking checkout architecture not only to improve customer experience, but to strengthen operational resilience, reduce shrink exposure, and scale modernization efforts across large store estates. For retail executives evaluating AI checkout solutions, loss prevention technology, and automation strategies, this episode offers practical insight into how leading organizations are approaching front-end transformation today.