This Week in AI & Retail

This Week in AI & Retail 

 May 24, 2024 

 A Roundup of Top News and Developments from the Past Week  

The AI (artificial intelligence) industry is developing at a breakneck speed, with a number of new developments happening on a daily basis in retail. In our weekly “This Week in AI & Retail” digest, we track the major developments in AI and retail to make sure you don’t blink and miss them!  

This week, we saw notable announcements emerging from the annual Microsoft Build developers conference in Seattle and VivaTech in Paris, along with a drumbeat of developments within the AI industry and new use cases announced from in-store and online retailers. 

Below, we detail key themes and developments that have emerged this week. 

1. Enhanced Customer Engagement 

• Google’s New AI Features: Google introduced new tools for retailers, including a new profile for e-commerce brands, generative AI (GenAI) features for more effective product imagery, and new immersive ad formats. These developments aim to deepen the connection between shoppers and merchants through enhanced visual brand profiles on Google Search, showcasing detailed product imagery, videos, customer reviews and deals​.
• LVMH’s “The Dream Garden”: At VivaTech, LVMH hosted its Dream Garden pavilion showcasing a host of customer-facing innovations, many of which featured GenAI. Examples included AI-powered conversational experiences at Moët Hennessy, with its AI Sommelier and AI-enabled personalized experiences with Louis Vuitton, Sephora and Lora Piana. This pavilion highlighted online and in-store engagements to create elevated and interactive innovative retail experiences. 

2. Operational Efficiency and Staff Support

• AI in Use by Sainsbury’s: Sainsbury’s is partnering with Microsoft to implement AI tools aimed at streamlining operations, such as shelf replenishment. These tools use real-time data and cameras to guide staff, saving time and allowing them to focus on other priorities, thus increasing overall operational efficiency. .
• Microsoft’s AI-Powered Tools: At the Microsoft Build developer conference, new AI features for the Copilot+ PC lineup were introduced. These features are expected to enhance retail operations significantly, offering advanced tools to improve efficiency and support staff tasks​.

3. Innovations in Retail Experience

• Amazon’s Enhanced Alexa: Amazon is updating Alexa with GenAI to provide more conversational and interactive experiences, and will be charging a monthly subscription fee for the service.  
• Google’s 3D Images in Ads: Google has launched a feature that allows retailers to use 3D images in AI-generated ads. This technology enables consumers to interact with products from different angles before purchasing, which is particularly useful for luxury and high-value items​. 
• LVMH and Alibaba’s Partnership: LVMH and Alibaba are expanding their partnership to boost AI-powered luxury retail experiences in China. This collaboration leverages Alibaba’s cloud and AI technologies to enhance LVMH’s omnichannel presence and elevate the luxury consumption experience

This week, continued advancements in GenAI technology and features are enabling retailers and brands to realize operational efficiencies within their own business, and to enhance the consumer experience both offline and online. New initiatives from retail companies including LVMH, Sainsbury’s, Sephora and others are paving the way to showcase new possibilities for AI-enabled customer experiences.  

Want to read more on GenAI in retail? Check out these reports on the subject from Coresight Research:  

• Generative AI Latest: GenAI Chatbots and Apps Are Ready for Prime Time 
• What Do US Consumers Think About Generative AI? 
• AI Council Summit—Event Insights: Exploring the Transformative Impact of AI