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Five Simple Examples Of How AI Is Changing Retail

Saanika Budhiraja
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Artificial intelligence may seem like a buzzword from the future. But, in reality, you can find examples of AI all around us. In retail, for instance, you can use this technology to improve the quality of customer experience and increase the profit for business owners.

In today's economy, providing a seamless, friction-free shopping experience is becoming increasingly important to stay ahead of your competition. Big eCommerce giants like Amazon and Asos are already using AI to improve their customers' shopping experiences. Then why should other retailers stay behind? Check out our examples of AI in eCommerce and online retail:

  1. Deliver true personalisation
  2. Give more options with visual search
  3. Manage stock updates
  4. Boost seasonal sales
  5. AI-driven product recommendations

AI-enabled retail stores


Examples of AI in eCommerce

1. Deliver true personalisation

Personalisation is the ability to deliver a unique experience to each customer automatically. A salesforce survey shows that personalised customer experiences are no longer just a 'nice to have' but required to compete in this changing economy. Personalisation has taken on new meaning with AI, and it's no longer about pre-defined segments or personas. Shoppers now demand a tailored and unique shopping experience every time they visit your store. A salesforce survey shows that personalised customer experiences are no longer just a 'nice to have' but required to compete in this changing economy. One of the most disruptive examples of AI-powered personalisation today is Netflix. Today's customers demand a seamless and friction-free experience, and Netflix provides just that by greeting customers with tailored recommendations every time they log in! Kitlocker.com, a sportswear retail store, employs AI to craft individualised homepages that adapt in real-time as shoppers navigate the store. From the homepage to the product detail pages, every interaction is personalised, resulting in longer dwell times, increased page views, and higher conversion rates. This real-world example of AI in retail demonstrates the promise of customised and unique customer experiences.

How Kitlocker.com is personalising their customers’ experience without collecting their personal data.

Screenshots from Asos.com showing how visual search tools use AI to show recommendations
An example of an AI-powered visual search experience on ASOS

2. Give more options with visual search

Visual search is the ability to search for products based on an image. It's an excellent way to find products that match what you see in front of you, such as when searching for a specific pair of shoes or a piece of furniture.

Let's say you want to buy a new pair of jeans that you saw online or in-store, but it is out of stock. With visual search, you can take a picture of your favourite pair and compare them against other products with similar styles and colours. This makes finding items easier!

There are many benefits to using this technique:

  • You're less likely to miss out on something great because you didn't know about it before;
  • It saves time by narrowing down extensive selections into smaller ones;
  • And finally...it makes shopping much more enjoyable!

Examples of companies using visual search tools to their advantage are Asos and Boohoo, allowing customers to add a picture of the product and returning relevant suggestions based on the image.

AI for inventory management in online and offline retail

3. Manage stock updates

AI is all about making your business smarter and more efficient. AI can help you manage inventory, better understand your product demand, predict demand for your products, and even understand which items aren't selling well so that you know to save space on them in future.

Smart merchandising is another important application of AI in eCommerce stores. As soon as a new season rolls around, new products are added, or some go on sale (or if any other relevant change happens), AI will automatically blend these with the existing catalogue.

How Tilestyle is using Shopbox to boost sales with smart, dynamic merchandising

4. Boost seasonal sales

If you're planning a holiday campaign, you'll want to know what your customers are looking for — and when they are ready to buy it. That's where artificial intelligence (AI) comes in. By using AI and machine learning algorithms, retailers can create personalised experiences that increase engagement and conversion rates throughout the year, especially during the holidays.

Here are four ways you can use AI to boost your seasonal sales:

  1. Create custom carousels on the homepage for the festive or holiday season
  2. Use AI to show recommendations for new and discounted products
  3. Use AI-powered personalisation throughout your site to target specific users with offers relevant to the season
  4. Cross-sell and up-sell based on their real-time behaviour to boost conversion and average order value
A screenshot of an AI-powered carousel promoting items for valentine’s day

Custom Valentine’s Day Carousel on McCauley Health and Beauty Pharmacy

5. AI-driven product recommendations

You're missing out on a huge opportunity if you're not using AI-driven product recommendations to personalise the buying experience.

The benefits of using AI-driven product recommendations are clear. When shoppers see more relevant products, they buy more products.

Here are three simple examples of how AI product recommendations can help you personalise every step in your shoppers' journeys:

  1. Create a unique homepage experience for each shopper with an AI-Powered Curated Homepage, just like an Amazon Homepage but for any retailer
  2. Use an AI Shop Assistant pop-up to show real-time product suggestions on the Product Listing Page (PLP)
  3. Show a mobile-optimised carousel on Product Detail Page(PDP) with products that adapt based on the shopper's individual journey
Examples of ai-powered recommendations in retail

Un-intrusive AI-recommendation pop-ups on Soyaconcept and Keans

AI-powered retail stores

AI-powered online retail stores are the future of retail. The technology that powers these stores is designed to help you increase sales, improve customer experience and satisfaction, and reduce costs.

AI-Powered Shops are an excellent way for brands to reach their target audience by providing personalised recommendations or even automating certain processes such as payment processing and inventory management.


AI is no longer an exciting concept that will take over the world—it is a reality, and it’s changing how consumers interact with businesses. It is helping retail businesses save costs and boost productivity. The examples in this article show how eCommerce businesses can boost profitability, increase brand loyalty, and improve their automated tasks using AI tools. It is clear that AI is here to stay and will continue to impact retail moving forward. Explore the present and future of AI in retail.


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