Chatbots powered by AI are increasingly being adopted by retailers worldwide
Several retailers, including Instacart, Mercari, Carrefour, and Kering, have introduced chatbots powered by generative artificial intelligence over the last 12 months. Notably, even large companies like Walmart, Mastercard, and Signet Jewelers are currently testing chatbots with a plan to make them publicly available in the near future. These advanced chatbots aim to provide shoppers with personalized recommendations and help them brainstorm gift ideas for their loved ones.
The evolution of chatbots has transformed the shopping experience
Traditionally, retailers have incorporated chatbots into their customer service strategy, but earlier versions lacked conversational abilities and were limited to answering a few standard questions, such as order status inquiries. The latest chatbots, on the other hand, possess the ability to process queries and generate customized responses, resulting in a more authentic and individualized interaction. Carl Rivera, a vice president at Shopify responsible for overseeing the Shop app, which hosts Shop A.I., highlighted that the chatbot dissects user queries into key terms and skillfully explores relevant products from millions of Shopify sellers. These recommendations are based on product reviews and the shopper’s purchase history.
Users have mixed experiences with chatbots
Nicola Conway, a lawyer residing in London, tried Kering’s luxury personal shopper named Madeline. While the experience was considered “intuitive and novel,” Madeline only provided one recommendation—a corset dress by Alexander McQueen. Similarly, Maggie Weber, a shopping influencer who goes by the handle @refashionedhippie, tried Mercari’s chatbot, Merchat A.I., but encountered some limitations. When asking for baseball cards, the chatbot redirected her to baseballs, hats, bats, and jerseys. Despite these shortcomings, retailers like Mercari ensure that chatbots like Merchat solely use chat history for recommending products and do not exploit personally identifiable information.
Personally, I found these chatbots helpful in generating ideas for presents. Shop A.I. successfully assisted me in finding potential gifts for both my mother, who needed a back pain solution, and my cousin, Jenny. However, when it came to making a final purchase, I found that the selection of products did not meet my expectations and requirements.
Overall, the inclusion of chatbots powered by artificial intelligence has brought about a significant transformation in the retail landscape. As these chatbots continue to evolve, they have the potential to recreate an in-store environment online, facilitating personalized and efficient shopping experiences for consumers.