Generative artificial intelligence (AI) is rapidly reshaping the retail landscape, unlocking new opportunities for customer engagement, operational efficiency, and business growth. As retailers face rising customer expectations, tighter margins, and fierce competition, generative AI offers a powerful toolkit to reimagine every facet of the retail experience—from the storefront to the supply chain.
Generative AI refers to advanced models, such as GPT-4, that can create new content—text, images, audio, and more—based on vast datasets. Unlike traditional automation, generative AI brings a human-like ability to converse, recommend, summarize, and create, enabling retailers to deliver more personalized, efficient, and engaging experiences at scale.
Retailers are already seeing the impact. According to recent research, 87% of shoppers who have used generative AI tools are excited about what the technology will bring to their shopping experience. From conversational commerce to AI-powered product search and supply chain optimization, generative AI is moving from hype to real-world value.
The way customers search for and discover products is changing. Generative AI enables conversational interfaces—chatbots and virtual assistants—that allow shoppers to describe what they want in natural language, rather than relying on rigid filters or keywords. This shift makes product discovery more intuitive and personalized, increasing conversion rates and average basket sizes.
For example, leading retailers are piloting conversational product search bars that help customers find all the ingredients for a recipe or assemble a complete outfit with a single query. These AI-powered assistants can answer detailed product questions, recommend complementary items, and even guide customers through complex purchase journeys.
Personalization is a proven driver of loyalty and revenue, but delivering it at scale has been a challenge. Generative AI analyzes customer data—purchase history, browsing behavior, preferences—to generate real-time, hyper-personalized product recommendations and offers. This capability extends to content creation, where AI can generate consistent, on-brand product descriptions, marketing copy, and even personalized product images tailored to individual shoppers.
Amazon, for instance, uses generative AI to summarize customer reviews, distilling thousands of opinions into concise, actionable insights that help buyers make informed decisions. eBay leverages AI to generate product descriptions for third-party sellers, streamlining the listing process and improving consistency across the marketplace.
Beyond the customer interface, generative AI is transforming retail operations. In supply chain management, AI-powered assistants can answer complex queries—such as "Where is my package?" or "Can this shipment be rerouted?"—by synthesizing data from multiple systems. Generative AI can also support decision-making in logistics, such as optimizing packing configurations or generating new shipping label layouts based on real-time constraints.
Retailers are beginning to experiment with generative AI as a layer of intelligence atop existing supply chain control towers, providing conversational access to insights and recommendations that previously required manual analysis or multiple system logins.
Generative AI isn’t just for customers—it’s also a powerful tool for employees. Walmart, for example, has rolled out an internal AI-powered assistant, "My Assistant," to help associates with tasks like summarizing documents, taking meeting notes, and accessing HR information. These tools free up employees to focus on higher-value work and improve overall productivity.
Virtual knowledge assistants can also help B2B retail associates quickly find answers to customer questions, search internal sales materials, and provide contextual recommendations, enhancing both efficiency and customer satisfaction.
Retailers face a constant need to create and update product content across channels. Generative AI automates the creation of product descriptions, images, and even full web pages, ensuring consistency and reducing manual effort. For example, AI can standardize product descriptions from third-party sellers, generate personalized images based on customer data, and auto-fill transaction flows to streamline the purchase journey.
Several major retailers are already realizing the benefits of generative AI:
These examples highlight the tangible ROI that generative AI can deliver when strategically deployed.
While the promise of generative AI is immense, retailers face real challenges in scaling these solutions:
The future of generative AI in retail will be defined by data. Retailers that invest in creating a centralized, high-quality customer data foundation will be best positioned to unlock the full potential of AI—enabling more personalized experiences, smarter operations, and new revenue streams. As generative AI matures, it will become a cornerstone of e-commerce, powering everything from conversational shopping assistants to dynamic pricing and supply chain optimization.
Publicis Sapient is uniquely positioned to help retailers bridge the gap between experimentation and enterprise-scale AI implementation. With deep expertise in digital business transformation, data strategy, and AI engineering, we partner with retailers to:
Our proven methodologies, including micro-experiments and scalable pilot programs, help retailers move beyond proof of concept to measurable ROI. Whether you’re looking to enhance personalization, optimize operations, or reimagine the customer journey, Publicis Sapient can guide your generative AI transformation every step of the way.
Ready to transform your retail business with generative AI? Connect with our experts to start your journey toward smarter, more engaging, and more profitable retail experiences.