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The rapid digital transformation in the retail sector is more evident than ever, with a growing emphasis on utilising advanced technologies like Generative AI to enhance customer experiences. Salesforce’s latest Connected Shoppers Report reveals that more than 60% of retail decision-makers are planning to invest in AI technologies*, signalling the sector’s readiness for a tech-driven overhaul.

The significance of Generative AI in Retail

Generative AI has the unique ability to understand, learn, and produce human-like text, facilitating unparalleled interaction between consumers and online platforms. This technology goes beyond simple automation and data analytics to offer a new level of personalisation in customer interactions. With Generative AI, retailers can offer dynamic and responsive shopping environments that adapt to each customer’s journey.

Shoppers are interested in Generative AI to help them research products, get recommendations and find inspiration across a wide range of product categories with 17% of shoppers saying they’ve used Generative AI to get inspiration for product purchases according to the Salesforce research. Whether it’s for researching electronics, creating meals or getting wardrobe inspiration, Generative AI is becoming a trusted advisor for customers providing tailored recommendations and insights.

Source: Salesforce Connected Shoppers Report, Fifth Edition

Advancing beyond traditional personalisation techniques

One of the key applications of Generative AI in retail is real-time personalisation. Traditional personalisation methods rely heavily on historical data and predefined customer segments. In contrast, Generative AI can process real-time data to offer personalised recommendations, answer customer queries, and even suggest additional products based on current interactions. This leads to more engaging and satisfying shopping experiences, which can translate to increased sales and customer loyalty.

Achieving multi-channel consistency

Another insight from the Salesforce report is the growing need for a unified shopping experience across different digital channels. The modern consumer expects a seamless transition from desktop to mobile, to in-store interactions. Generative AI can play a pivotal role here by enabling retailers to offer consistent and personalised experiences across these platforms. This is crucial for retailers looking to establish a strong brand presence in an increasingly competitive market.

For example, Generative AI can be used in chatbots and virtual assistants across various channels to provide consistent customer service. Whether a customer initiates a conversation through a website chat, social media or messaging app, AI can ensure the context and history of the customer’s interactions are taken into account, providing a coherent and continuous service experience.

The retail industry is on the cusp of a significant transformation, driven by advancements in AI technologies. The key to success in this new landscape lies in harnessing the power of Generative AI to offer dynamic and personalised customer experiences. By understanding and integrating Generative AI into their customer engagement strategies, retailers can not only meet but exceed the ever-evolving expectations of modern consumers. This approach not only ensures staying relevant in the current market but also paves the way for future innovations and growth in the retail sector.


Watch some use cases for Generative AI for retail now.

*Salesforce Connected Shoppers Report, Fifth Edition

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