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New Research Shows 9 in 10 Retailers Are Using Generative AI to Improve Customer Experience 

AI Trends in Retail

Top Applications Include Personalization, Search & Discovery, and Marketing & Promotions  

ATLANTA, Georgia — October 7, 2024 — Syndigo, a leading SaaS commerce data management provider, today released new research on ways in which retailers are leveraging generative AI to help them better meet customer needs in an increasingly changing marketplace. The Generative AI Trends in Retail and eCommerce report, fielded by WBR Insights, reveals what retailers are doing to effectively leverage AI and how they plan to expand their use of this game-changing technology. 

Overcoming Information Overload  

Flooded with advertising, choices, and recommendations, consumers are easily overwhelmed, which can lead to abandoning their shopping carts out of frustration, lack of product information, or disappointment.  

Using the power of AI, retailers can reduce the noise around decision-making and improve customer engagement through marketing strategies that can earn them higher sales revenue and more loyal customer relationships. In fact, nearly six in 10 retailers agree that the flexibility that AI can provide in eCommerce operations are a top generative AI investment. 

With 91% of retailers reporting they are in the early to mid-stages of using generative AI, the time to invest is now. Those doing so will have a leg up on the competition, capitalizing on its value sooner and at scale. 

Redefining Product Search & Discovery  

Consumers want more natural, conversational, human-to-human-like interactions to help them research and buy products for a truly personalized shopping experience.  

Retailers are meeting this need by using machine learning algorithms and generative AI to analyze customers’ past purchases, product preferences, and other data to generate custom-tailored recommendations and communications. 

Fifty-eight percent of retailers consider enabling interactive conversational chat experiences to improve site search as one of their best generative AI investments. Such interactions could replace traditional search bars with conversational AI that presents products and makes recommendations based on customer buying patterns.  

“We’re already starting to see retailers roll out AI-powered search capabilities within their apps. With so much information out there, it can sift through irrelevant content and get consumers answers faster,” said Benny Blum, Senior Vice President, Product at Syndigo. “As these solutions advance, they promise a more well-rounded customer experience with shoppers able to browse or get immediate access to a customer service ‘rep’ at their leisure.” 

Retailers have their work cut out: 37% of respondents said they use generative AI for search and discovery, with 81% only somewhat satisfied with current capabilities in this area. 

Applying Generative AI to Boost Capabilities 

Interestingly, 56% of respondents say they would apply generative AI to product information management if they could successfully do so to two of six capabilities within the business.  In each case 44% would apply it to eCommerce content syndication and digital content creation. Nearly one-third (31%) would apply generative AI to master data management.  

Survey respondents view generative AI as a turnkey method for improving product information on their eCommerce sites, along with search and discovery. They also recognize generative AI’s creative potential because it has demonstrated strong applications in content creation. 

Ensuring Privacy, Ethics, and Compliance  

Notably, 71% of retailer respondents are somewhat concerned with customer backlash regarding generative AI usage to support eCommerce or other data management efforts. 

“Like any new technology, there’s some hesitancy to quickly adopt generative AI,” Angove said.  “Retailers are still discovering the many ways they can integrate it into their operations, while also needing to take into account ethical and data privacy concerns at the same time.”  

AI’s predictive analytics are transforming retail inventory management and pricing strategies by making stock optimization and dynamic pricing easier through operational efficiency. However, they also introduce risks like sophisticated pricing algorithms that may lead to unfair pricing practices, necessitating careful regulatory compliance and ethical considerations. In fact, one-quarter of retailers surveyed identified data privacy concerns as the biggest challenge to using generative AI.  

Download a copy of Generative AI Trends in Retail and eCommerce for more insights. 

About the Study 

Sponsored by Syndigo, WBR Insights conducted interviews with 100 retail leaders across the U.S. and Canada who work for companies with annual revenue from $100 million to over $10 billion. 

About Syndigo

Syndigo is the leading provider of MDM, PIM, and PXM, delivering data mastery and exceptional customer experiences across departments, organizations, and commerce platforms. With the largest integrated network for content distribution, Syndigo is the end-to-end solution on the journey to data confidence and success. Whether an enterprise needs to achieve a “single source of data truth” inside the organization or distribute it to an external network in pursuit of faster, more efficient commerce, Syndigo makes it happen.

Syndigo serves more than 14,000 leading enterprises worldwide across key industries including grocery, foodservice, hardlines, home improvement/DIY, pet, health and beauty, automotive, apparel, energy, and healthcare. For more information, visit www.syndigo.com and follow us on LinkedIn.

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