The Promise of Perfect ‘Fits’

To understand the profound impact that generative artificial intelligence is having, and will continue to have, on online shopping, consider this simple question: When buying an article of clothing, which would you prefer — something off the rack or tailor-made? Undoubtedly, the latter option holds great appeal. This is where the exciting promise of generative AI comes into play: marketing that's customized to align precisely with the individual tastes and preferences of consumers. It's not about throwing generic offerings into the digital abyss; instead, it's about intelligently targeting individuals.

In essence, it's about delivering the promise of a perfect "fit" every time — and we're not just talking about literal fit (I'll explore that later), but products that seamlessly align with a person’s style, budget, aspirations, and even their dreams, spanning categories from clothing to housewares and everything in between.

Creating the Magic

At this year’s Shoptalk event — held in Las Vegas, a place that’s all about risk taking, in stark contrast to AI, which is largely about reducing risk — a number of CEOs and presidents of large brands and retailers expounded the virtues and potential of generative AI. One president summarized its transformative power simply: “Imagine if every customer experience is magical.”

So how does generative AI create this magic? It gains a better understanding of each online shopper using click streams and online shopping journeys, customer service inquiries and other behaviors, and an extreme volume of data to create a personalized experience for each individual — an experience that features customer-specific imaging, text, audio, videos and more.

The result? In addition to inspiring and motivating the customer during the online shopping process — and getting them to arrive at the kind of product they’re looking for much quicker — this level of personalization builds brand loyalty and leads customers to discover new products and services. Not surprisingly, it increases conversion rates, which some Shoptalk attendees noted were already up by 20 percent to 30 percent. Retailer bonus: When you’re able to give people what they want — what they really want — you can substantially reduce returns.

A Modern Tailoring Approach

Sticking with the tailoring analogy, generative AI injects a few critical differences into the online shopping experience. In the nonvirtual world, anything that’s tailor made, including nonclothing items, takes longer and costs more because there’s so much hands-on work involved. Generative AI, however — the ultimate brand message “tailor” — will actually make marketing much more efficient and reduce costs, in large part because many fewer hands will be needed. Machines and data will do most of the heavy lifting. Shoppers will receive personalized, on-brand copy and images developed especially to motivate them, and they’ll see them in more places since large volumes of messaging will be much easier to generate.

A New Co-Pilot

In an ironic twist, AI will actually affect real-world tailoring since it has not only made virtual body measuring a reality, but also lets shoppers see with a high degree of accuracy how products from an online catalog will look on them. All it takes is a few clicks; no trying-on needed.

However, one of the biggest takeaways from the keynote speeches at Shoptalk was that, for the most part, they expect generative AI will help — not replace — human jobs. For example, AI will act as “co-pilot” for customer service agents, helping them to be more responsive and efficient in customer interactions. As Bill Ready, CEO of Pinterest, enthusiastically declared, “I spent the last 20 years determining how to make online shopping a seamless experience for consumers, and now I’ll spend the next 20 figuring out how to make it a joyful one.”

Part of that joy will come from generative AI delivering a more “human” experience to the customer by making brands more conversational, offering shoppers more intelligent (and helpful) customer service chat, and giving them highly personalized product and style recommendations — even suggestions on what to wear that day.

The Fabric of Everyday Life

As generative AI silently and seamlessly reshapes our approach to online shopping, you may find yourself wondering how it will affect you. Consider this: Do you truly understand the reasons behind your current outfit choice? With AI continually influencing our preferences and guiding our selections, the future of shopping holds intriguing and transformative possibilities. So, as you navigate the transformations of online shopping, embrace the allure of an experience tailored just for you, where the perfect "fit" isn't just about clothing, but also about expressing your unique style in a world where AI weaves its magic into the fabric of everyday life.

Peter Gigliotti is an insights manager at KS&R, a marketing insights and consultancy firm that provides decision-critical data analysis to some of the largest and most influential global companies.