Generative AI in Retail: Secure, Custom AI Assistants for E-commerce and Supply Chain Optimization

The retail industry is undergoing a profound transformation, driven by the rapid evolution of generative artificial intelligence (AI). As consumer expectations rise and operational complexity increases, retailers are seeking innovative ways to automate, personalize, and optimize every aspect of their business. Proprietary generative AI tools—like Publicis Sapient’s PSChat—are at the forefront of this shift, offering secure, customizable solutions that address the unique challenges of retail, from e-commerce to supply chain management.

The Promise of Generative AI for Retail

Generative AI refers to advanced machine learning models capable of creating new content—text, images, code, and more—based on vast datasets. In retail, this technology is unlocking new value in three core areas:

1. Customer Experience Automation: AI-powered chatbots and virtual assistants are revolutionizing how customers interact with brands online. Unlike generic chatbots, custom solutions like PSChat can be tailored to a retailer’s brand voice, product catalog, and customer data, enabling:
   • Conversational product search that helps shoppers find exactly what they need through natural language queries.
   • Personalized recommendations and cross-sell/upsell suggestions based on browsing and purchase history.
   • Automated, context-aware customer service that resolves inquiries and issues efficiently, reducing the burden on human agents.
2. Supply Chain Optimization: Retail supply chains are complex, with multiple touchpoints and constant demand for efficiency. Generative AI can:
   • Provide real-time answers to logistics questions (e.g., “Where is my package?”) by integrating with tracking systems and databases.
   • Suggest optimal packing configurations or shipping label layouts based on unique constraints, using conversational interfaces for rapid troubleshooting.
   • Analyze vast amounts of operational data to predict disruptions, optimize inventory, and support dynamic decision-making.
3. Personalized E-commerce Experiences: Generative AI enables retailers to deliver hyper-personalized online shopping journeys by:
   • Automatically generating consistent, on-brand product descriptions and imagery tailored to individual customers.
   • Summarizing customer reviews and feedback to highlight key product insights.
   • Streamlining transaction flows, such as auto-filling forms and customizing site navigation for each user.

Why Security and Customization Matter

While public generative AI tools offer impressive capabilities, they often fall short in two critical areas for retailers: data privacy and contextual accuracy. Retailers handle sensitive customer data and proprietary business information, making security non-negotiable. Proprietary solutions like PSChat are designed with robust guardrails:

• Data Sovereignty: All data remains within the retailer’s secure environment, with no risk of leakage to public AI models or third-party servers.
• Custom Plug-ins and Integrations: Retailers can build custom plug-ins to connect AI assistants with internal systems—such as inventory databases, CRM platforms, or supply chain management tools—ensuring accurate, context-rich responses.
• Role-based Functionality: AI assistants can be configured to “act as” different personas (e.g., customer service agent, supply chain manager), delivering tailored outputs for each business function.

Real-World Retail Innovation: Leading the Way

Forward-thinking retailers are already experimenting with internal generative AI assistants to drive efficiency and customer satisfaction:

• Walmart’s Internal AI Assistant: Walmart Canada rolled out “My Assistant,” a generative AI-powered chatbot for employees. Initially an experimental tool, it now helps associates automate tasks like meeting notes and document summarization, with plans to expand into HR and self-service portals.
• Amazon’s AI-Generated Review Summaries: Amazon leverages generative AI to distill thousands of customer reviews into concise, actionable summaries, helping shoppers make informed decisions quickly.
• eBay’s Product Description Generator: eBay uses AI to automatically generate product descriptions for third-party sellers, streamlining the listing process and improving consistency across the platform.

These examples illustrate how custom AI tools are moving beyond generic chatbots to become integral parts of retail operations—empowering both employees and customers.

Overcoming Challenges: Data, Ethics, and ROI

Despite the promise, successful generative AI adoption in retail requires careful planning:

• Data Quality and Integration: Effective AI solutions depend on clean, unified customer and operational data. Retailers must invest in data strategy and governance to maximize AI ROI.
• Ethical Use and Transparency: Clear policies and ethical frameworks are essential to avoid bias, misinformation, and erosion of consumer trust. Retailers must be transparent about when and how AI is used in customer interactions.
• Scalable Experimentation: The most successful retailers start with focused micro-experiments—testing AI assistants in specific workflows before scaling to enterprise-wide deployment.

The Publicis Sapient Advantage: Secure, Industry-Tailored AI

Publicis Sapient brings deep expertise in building secure, custom generative AI solutions for retail. Our proprietary tools, like PSChat, are designed to:

• Protect sensitive data with enterprise-grade security and privacy controls.
• Integrate seamlessly with existing retail systems and workflows.
• Enable rapid customization and plug-in development for unique business needs.
• Support robust governance and ethical AI practices.

By partnering with Publicis Sapient, retailers can move beyond off-the-shelf AI to unlock the full potential of generative technology—delivering measurable improvements in efficiency, customer satisfaction, and competitive differentiation.

Ready to Transform Retail with Generative AI?

The future of retail is intelligent, personalized, and secure. Custom generative AI assistants are not just a trend—they are a strategic imperative for retailers seeking to thrive in a rapidly changing landscape. Whether you’re looking to automate customer service, optimize your supply chain, or create unforgettable e-commerce experiences, Publicis Sapient is your partner for secure, industry-leading AI transformation.

Connect with our retail and AI experts to start your generative AI journey today.

Relevant Links

• Discover Publicis Sapient’s Generative AI Assistant: PSChat
• Discover Publicis Sapient’s Generative AI Assistant: PSChat
• Transformando la Experiencia del Empleado y el Upskilling con IA Generativa en América Latina (LATAM)
• Transformer l’Expérience Employé en Europe grâce à l’IA Générative : Sécurité, Productivité et Compétitivité (Europe)
• Generative AI for Employee Experience: How PSChat and Custom AI Assistants Are Transforming Internal Workflows Across Industries