The 2026 Adult Novelty Manufacturers Expo (ANME) Founders Show in Burbank, California, featured two educational seminars sponsored by AVN, addressing retail growth strategies, artificial intelligence (AI) applications, and compliance with age verification laws.

The seminars, held on July 13 and July 14, 2026, at the Los Angeles Marriott Burbank, explored topics relevant to adult novelty retailers, manufacturers, and distributors, including operational improvements through AI, customer education, and navigating legal and banking challenges.

Retail Knowledge and AI Integration

The first seminar, titled "Increase Your Retail Knowledge for Brick and Mortar Stores," took place on July 13, 2026, before the ANME show officially opened. Kim Airs, AVN’s Pleasure Products Contributing Editor and AVN Hall of Famer, moderated the discussion. Panelists included Zondre Watson, General Manager of Ero-tech Technology and Analytics; David Eliason, owner of Dick & Jane’s Naughty Spot; and sex educator Javay Frye-Nekrasova, also known as The Millennial Sexpert.

Watson discussed how AI can assist brick-and-mortar store owners in enhancing workflow, productivity, and profitability. He described AI as an "assistant" that can help manage various business operations. Watson stated that his AI chatbots, primarily Claude, have been used to reorganize adult toys on display shelves, analyze profitability reports, create purchase orders, check store inventory, and compare year-over-year growth, allowing him to focus on other aspects of his business.

Eliason shared his experience using AI to improve a billboard design for one of his South Dakota stores. The AI chatbot produced a version that accounted for drivers traveling at 80 miles per hour. He also utilized AI to create employee schedules in "less than a minute" and redesign a retail shelf sign to highlight the benefits of water-based lubricants. Eliason noted that "there’s really no limit" to AI's potential applications.

Airs then shifted the focus to customer education within adult stores, specifically regarding the G-spot, anal sex, and BDSM. She demonstrated how stores can educate customers on the G-spot using a Wondrous Vulva Puppet. Frye-Nekrasova discussed lubricants and toys for anal sex and offered suggestions for employee guidance to customers. For BDSM, Frye-Nekrasova suggested that retail stores could offer workshops on kink and drive in-store sales with limited-time coupons, describing it as "another revenue stream." She added that "most kinksters don’t want to buy their shit from some random place on the Internet."

Age Verification and Industry Challenges

The second seminar, "AV and the Novelty Industry Legal Panel," was held on July 14, 2026. Kim Airs again served as moderator. Jeffrey Douglas, Free Speech Coalition Board Chair and First Amendment attorney, was unable to attend, and David Eliason took his place on the panel. Other panelists included Meghan Lyon, Free Speech Coalition Membership Director, and Lucy Luna Trim, Senior Account Executive at GOAT Payments. The panel addressed age verification, banking and payments, and risk and liability.

Airs noted that age verification "used to not be a big deal" but is increasingly significant as state-level age verification laws are established. She emphasized that these laws extend beyond adult video content sites, impacting the broader adult industry. Lyon stated that more than two dozen states currently have age verification laws.

Eliason commented on the privacy implications of age verification, stating that when adult website visitors must provide government-issued identification or a selfie, "Your privacy is virtually nonexistent." He also noted that age verification laws are often written with "vague and ambiguous language by design" to be "as broad as it can be so the government can do that it wants."

Airs observed an "uptick in adult video DVD sales" among adult retailers, attributing this to consumers seeking to avoid privacy concerns associated with age verification laws by gravitating towards analog formats.

The panel also discussed banking discrimination faced by adult retailers, whose businesses are often deemed "high-risk" by banks and payment processors. Trim suggested that specialized payment processors like GOAT could provide alternatives for businesses rejected or "blacklisted" by traditional banking systems.

Lyon stated that the Free Speech Coalition, through its Sexual Wellness Professional Alliance division, is "fighting in several states to change the language of age verification laws" and advocating for the rights of adult retailers, manufacturers, distributors, and sex educators. The organization is engaging with leaders and legislators in Washington, D.C., to address legal obstacles in the adult space.

This spring, the Free Speech Coalition launched PrivateAV, an age verification service for its members, described as private, compliant, and affordable. Lyon highlighted that PrivateAV supports "us, the industry."

Airs concluded by emphasizing the crucial role of "brick and mortar stores" as "the boots on the ground" for adult entrepreneurs, facing both opportunities and obstacles.

Key Facts

  • The 2026 ANME Founders Show hosted two AVN-sponsored seminars on July 13 and 14, 2026, at the Los Angeles Marriott Burbank.
  • Seminars covered retail growth, AI applications, age verification compliance, and banking challenges.
  • Kim Airs moderated both seminars, with panelists including Zondre Watson, David Eliason, Javay Frye-Nekrasova, Meghan Lyon, and Lucy Luna Trim.
  • AI tools were discussed for improving workflow, analyzing profitability, managing inventory, and creating marketing materials and schedules.
  • Age verification laws are present in over two dozen states, impacting privacy and leading to increased adult video DVD sales.
  • The Free Speech Coalition launched PrivateAV, a private age verification service for its members, and advocates for changes to age verification laws.