AI

Tapping AI for personalization could boost retail revenue

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June 4, 2024

Retailers using AI-powerd conversational shopping assistants to drive personalized shopping experience could boost a retailer's revenue by 5% to 10%.

That's a top finding of Bain & Company research that also revealed Gen AI-powered productivity enhancement and cost savings could boost retailers' already thin margins, according to a press release on the research.

"From conversational search to personalized apps, gen AI is reshaping the retail landscape in a way that is going to be even faster and more transformative than the smart phone or the internet," Mikey Vu, partner in Bain & Company's Retail practice, said in the release. "A year into their journey, retailers have enjoyed some early successes. It will be critical for them to scale these use cases, with a focus on ROI, to keep pace with the evolving expectations of shoppers who are rapidly incorporating generative AI into their daily lives."

Bain research also shows consumers trust AI for personalized shopping recommendations more than any other use case they were asked about. Bain estimates Gen AI enhancements that reshape the way retail employees work on the front line, in warehouses, and at HQ could boost productivity up to 25%.