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Recap: How online retailers used AI in 2024

Artificial intelligence (AI) continued to advance in 2024. Online retailers used AI for customer experience and commerce-centered applications, building on existing use cases and finding new ways to capitalize on their data.

Although generative AI remains a popular focus, retailers have been using AI and machine learning for more than just producing marketing copy and images. Online retailers used AI for personalization, retail media networks, checkout, fulfillment centers and more in 2024. Meanwhile, online marketplaces like Amazon, eBay and Etsy focused on enhancing AI tools (including generative AI-produced product listings) for both buyers and sellers.

Below, we recap some of Digital Commerce 360’s coverage from 2024 about how online retailers and the ecommerce technology providers they work with used AI in 2024. Parentheses denote a retailer’s current ranking in the Top 1000 Database, if applicable.

Some of the ways online retailers used AI in 2024

What online retailers value when comparing ecommerce platforms

Artificial intelligence tops the list, both on topics of interest for retailers and technologies powering new platform features.

Albertsons (No. 19)

Albertsons tries out AI assistance for wine selection

The Preferabli AI platform powering the Vine & Cellar Reserve ecommerce site is already available to Albertsons customers in California.

Amazon (No. 1)

Amazon unveils Amelia, an AI-powered assistant for marketplace sellers, at Accelerate event

The retailer detailed Amelia’s features at Accelerate alongside other AI tools that it is rolling out.

New Amazon generative AI tool rolling out to create product listings from URLs

The new options for sellers come with a cautionary note from Amazon as it expands its use of generative AI.

American Freight (No. 229)

How American Freight is rebranding after merging with Sears Outlet

American Freight is testing out generative AI applications and ways to make the online shopping experience more like visiting a store.

Associated Wholesale Grocers

Instacart brings delivery and AI-powered carts to AWG retailers

AWG member retailers will have access to Instacart’s Caper Carts, which use AI and computer vision to recognize items.

Best Buy (N0. 8)

Best Buy Canada opens up its retail media advertising to third-party brands

Through a partnership with the vendor Rokt, products that aren’t sold at Best Buy Canada will gain access to its retail media network and shoppers.

Best Buy shares new generative AI strategy for customer support

The electronics retailer will use generative AI for customer support self-service and as a tool for customer service agents.

Casio

Casio UK drives conversion through personalization tools, AI-powered search

The UK division of Casio said it uses Nosto’s product recommendations feature “to help consumers find the right products quickly.” The retailer said it uses A/B testing to optimize where those recommendations appear across its site.

eBay (No. 6 in Online Marketplaces Database)

EBay releases new reselling feature with Certilogo digital ID

“Resell on eBay” will pre-fill a listing with relevant information about an apparel item from a QR code on the product’s label.

Etsy (No. 20 in Online Marketplaces Database)

Etsy tries new Gift Mode recommendations with AI

The online marketplace’s Gift Mode uses machine learning to assign the gift recipient one of 200 personas and recommend relevant gifts.

Macy’s (No. 17)

Macy’s Media Network adds expanded AI capabilities through Rokt technology

The Rokt and Macy’s Media Network partnership seeks to support Macy’s initiatives for its credit card enrollment and loyalty program.

Michael Kors (which falls under Capri Holdings, No. 200)

Michael Kors becomes first retailer to deploy Mastercard’s AI shopping assistant

The Shopping Muse is made by Mastercard’s Dynamic Yield, which gave Michael Kors early access in 2023.

PayPal

PayPal announces new AI tools

PayPal’s six new tools will use AI to simplify the checkout process and give retailers new ways to target consumers with deals.

Perry Ellis (No. 714)

Perry Ellis tries new AI recommendations for its apparel online

The engine Perry Ellis is using comes from Syte, which has a AI solutions specially tailored to clothing and ecommerce.

Saks (which falls under Hudson’s Bay Co., No. 27)

Saks to use Salesforce’s new Agentforce features announced at Dreamforce

Salesforce chair and CEO Marc Benioff mentioned Saks as he opened Salesforce’s annual Dreamforce event in San Francisco.

Staples (No. 12)

Staples to use robots from RightHand Robotics in efforts to speed up delivery times

The artificial intelligence-powered robots at Staples fulfillment centers will be part of a multiyear deal.

ThredUp (No. 851)

ThredUp introduces new AI tools for search and discovery

ThredUp’s AI tools will appear in search, image recognition and chat experiences for the resale platform.

Ulta (No. 36)

Ulta’s generative AI hair try-on tool helps shoppers experiment with styles

Using Nvidia’s advanced AI technology, the feature allows users to upload a photo, take a quick selfie, or use a model’s image to see how different hair transformations might look.

Univision

Univision launches shoppable TV for award show viewers

The network started its foray into shoppable TV with four collections based around the Latin American Music Awards.

Wayfair (No. 9)

Wayfair releases generative AI app for Apple Vision Pro

Decorify uses spatial computing to show how a room would look in different design styles using Wayfair products.

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