Generative AI in retail: Enhancing customer experience and operational efficiency

The retail landscape is evolving rapidly, and at the helm of this transformation is Generative AI. This ground-breaking technology is reshaping the sector by enabling deeper personalization, enhancing customer experiences, and streamlining operational workflows. As consumer behaviours shift towards more digital and personalized interactions, retailers are leveraging Generative AI to meet these demands, driving innovation across the industry.

- HEMANTH KUMAR

PERSONALIZED CUSTOMER INTERACTIONS

Personalization has always been a key component of retail, but Generative AI is taking it to unprecedented levels. Historically, personalization might have involved sending a customer an email addressing them by name. Now, with Generative AI, retailers can analyze a customer's past purchases, browsing history, and preferences to deliver highly tailored product recommendations and shopping experiences.

According to a report by IMRG, 74.7% of consumers are more likely to make repeat purchases from brands that offer personalized experiences. This degree of customization not only enhances customer engagement but also builds loyalty, driving conversion rates higher.

H&M has been able to leverage the power of GenAI-powered chatbot to offer round-the-clock assistance to their customers, right from tracking orders to product recommendations based on current trends. The Virtual Try-On feature by Google Shopping leverages the GenAI & Diffusion technique, thus making online shopping much more personalized and interactive.

From dynamic website layouts to personalized mobile experiences, Generative AI ensures that every interaction feels bespoke, fostering a stronger connection between the customer and the brand.

REVOLUTIONIZING MARKETING AND ADVERTISING