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Reshaping the future of retail: Generative AI's impact on the shopping experience

Posted by preezie on 16. May 2024


Traditional boundaries of retail-commerce are being reshaped, and at the heart of this transformation lies the presence of Generative AI. This revolutionary technology is not just reconstructing the way businesses interact with customers but is redefining the very essence of the shopping experience that we have always known. 

With the eCommerce sector's substantial 16.8% share of retail spending 1, this highlights the growing importance of online platforms needing to adapt with evolving technology for better, faster, smarter, and personalised shopping and customer experiences. This blog will explore the current state and evolving world of online shopping, highlighting the remarkable potential of Generative AI, which is rapidly reshaping the industry.


Personalised shopping experiences powered by AI

Personalised shopping experiences powered by AI

In the era of Generative AI, the concept of a personalised shopping assistant becomes more than just an idea; it becomes a reality. Imagine your customers browsing through your online store, an always-available personal shopper or assistant powered by Generative AI is at their service, ready to provide real-time support, answer their queries, and guide them towards making informed purchasing decisions. This isn't just about recommendations based on past behaviour; it's about understanding preferences and needs in the moment, elevating the traditional shopping experience to high levels of satisfaction and delight.


AI driving efficiencies in retail

For businesses, the benefits of Generative AI extend far beyond enhancing the customer experience. By leveraging AI-powered tools for tasks such as inventory management, demand forecasting, and personalised marketing, retailers can significantly improve operational efficiency and reduce costs. It's a win-win for everyone. With Generative AI, every aspect of the retail workflow becomes optimised, leading to smoother operations and higher profitability. 

Amazon exemplifies this by leveraging AI to offer enhanced product recommendations directly on their product detail pages. At the heart of this initiative is an advanced deep-learning algorithm designed to assist each shopper in finding the perfect size across various styles. Amazon's algorithm evaluates brand size relationships, product reviews, and individual preferences to suggest the most suitable size. By grouping together customers with similar size and fit preferences, as well as products with comparable fits, the algorithm refines its recommendations. Drawing from extensive product details, including style, size charts, and reviews, as well as billions of anonymised customer purchases, it continually learns and improves. The system analyses millions of data points daily, generating billions of size recommendations monthly for millions of customers across 19 regions globally, enhancing the likelihood of customers purchasing and retaining items.

Today, the global fashion ecommerce market is worth in excess of US$800bn, with Statista predicting it could be worth over US$1.2tn by 2027.2 This growth trajectory underscores the urgency for merchants to harness the power of AI to capitalise on emerging opportunities and provide superior shopping experiences. 

AI driving efficiencies in retail


AI lens on the Shopify platform 

To our Shopify entrepreneurs, the future of retail is here, and it's powered by Generative AI. As pioneers in the world of eCommerce, you already understand the importance of staying ahead of the curve. While Conversational Commerce has laid the groundwork, it's Generative AI that will transport us into the next generation of retail innovation. The possibilities are endless: hyper-personalised shopping experiences, unprecedented advancements in supply chain logistics, predictive analytics, enhanced security and fraud detection, and AI-generated content that resonates with your audience on a whole new level. 

AI is transforming the shopping experience by delivering personalised solutions to everyday hurdles, like navigating size and fit in online fashion shopping or even anticipating significant life stages for customers. Take Target's innovative use of AI, which predicts major life events like pregnancy based on subtle shopping patterns, allowing for tailored marketing strategies. Spearheaded by machine learning expert Andrew Pole, Target's model identifies shifts in purchasing behaviour to estimate a customer's stage of pregnancy. Target's approach exemplifies the power of AI in enhancing customer experiences through personalised offerings.3

AI will likely continue to refine and expand its role in enhancing the shopping experience. Future developments may include predicting needs based on real-time data like customer emotions detected through biometric indicators, seamless integration of AI-driven recommendations across omnichannel, and more advanced virtual try-on technologies to further assist customers in making informed purchasing decisions. As AI algorithms evolve and data collection methods improve, the shopping experience is destined to become even more personalised, efficient, and enjoyable for consumers worldwide and on every platform.

AI lens on the Shopify platform 



In the world of Generative AI, one thing becomes abundantly clear: the future of online shopping is here, and it's exploding with potential. From personalised shopping experiences to ultra convenience and operational efficiency, Generative AI is reshaping the retail landscape in ways we've only begun to imagine. 

We invite you to join preezie in embracing this revolution, to explore the limitless possibilities it holds, and to experience the future of online shopping today. By unlocking the endless potential of Generative AI we will enter a whole new era of retail advancements and we’re here to support you.



[1] 2024 Inside Australian Online Shopping eCommerce Industry Report Aus post 

[2] How Amazon Uses AI to Help Customers Shop With Confidence

[3] How 6 Brands are Using Machine Learning to Grow Their Business

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