Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
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Radosław Szeja
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AI-powered commerce is ushering in an exciting new reality in which vendors can streamline their stores, and customers can make better buying decisions.

From $5 billion in 2022 to over $55 billion in 2030 is the estimated growth of the value of AI services in the retail industry.
These predictions are nothing out of the ordinary when you consider the many benefits that AI brings. It can effortlessly analyze customer sentiment at scale, identify trends that humans wouldn’t notice, personalize content for each customer individually, predict demand, provide customer support, and much more.
To thrive in the AI world, retailers are quickly modernizing their legacy infrastructure, adopting data security and privacy procedures, and balancing budgets to make room for AI. As more companies overcome these issues, AI solutions will proliferate across the whole industry.
AI enables retailers to find optimal store layouts, like the Fortune 50 home improvement chain Lowe’s did by combining technology from NVIDIA with AI to visualize different store arrangements.
The goal of this innovation was to enhance service, optimize operations, and promote collaboration. They created digital twins of several stores, which allowed them to run hundreds of AI-powered simulations to see how changes in the store would influence buyers.
This process is a much leaner substitute for the old-school way of building physical displays and putting them in front of real customers to analyze their reactions.
It also enables ecommerce-like capabilities for brick-and-mortar retailers. With sales performance and customer traffic data in simulations, stores can optimize the in-store experience more precisely than ever before.
AI is a beast when it comes to personalization. From Netflix to Twitter, all major digital platforms use AI to personalize your experience to some degree. It’s gradually spreading across the retail industry as well, with capabilities such as:
Virtual shopping assistants are streamlining the retail experience both online and in physical stores. When implemented properly, they can enrich the buyer’s journey from product discovery to post-purchase support.
They don’t just answer questions and find products, but also provide valuable insights into customer behavior. AI-powered virtual assistants can take the form of:
An interesting example of this is Walmart’s Text to Shop feature. Without any browsing, customers can just text one word to the service and it will return a few alternatives to pick from, or add to cart something that’s been ordered before. It also handles every stage of the buyer’s journey, from picking products to scheduling pickup times and checking out.
Whether it’s shopping histories or customer reviews, a thriving store can generate lots of data. To extract actionable insights from it without AI support would have been a grueling task.
Luckily, artificial helpers can chomp through troves of data like it’s nothing, and output accurate suggestions to improve your store thanks to capabilities such as:
Particularly useful for brick & mortar stores, even more so when they carry groceries, AI provides powerful capabilities to get your stock levels as close to customer demand as possible. An analysis from McKinsey & Co found that AI-powered forecasts can reduce supply chain errors by 50%, and reduce lost sales and product unavailability by 65%.
AI can help by:
A good example of this is US supermarket chain Cub, which was able to achieve an 18% decrease in produce waste thanks to an AI-powered solution called Afresh.
Just in the US, retail shrinkage had cost the industry $100 billion in 2022. Shrinkage, that is loss of inventory caused by theft or administrative errors, is one of the biggest issues that retailers have to deal with. Cybersecurity breaches are a huge problem as well, with threat actors keen to exploit bugs in online stores to steal data or disrupt operations.
Both in physical locations and online, AI can help retailers detect and prevent criminal activity with:
AI solutions won’t magically solve all problems that retailers face, but can still make a big positive impact on their financial and operational stability.
As the tech evolves, we’re bound to see more powerful AI retail solutions that will be cheaper and easier to implement. But there’s plenty to choose from already, so if you’re thinking about adding AI capabilities to your operations, reach out to our retail experts to get the ball rolling.
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Radosław Szeja
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