How Retailers Should Leverage AI To Improve Their CX

Consumers today are ready to use tomorrow’s tools, but most brands aren’t delivering.  

Whether it’s personalized search experiences or proactive customer support, AI offers brands the potential to revolutionize the customer journey from end to end. And yet, despite all the hype, retailers are still struggling to meet consumer expectations. The opportunity cost of not embracing AI now is significant.

What’s driving this urgency?

Experience and convenience. Today’s shoppers demand seamless, hyper-personalized, omnichannel interactions that feel intuitive and frictionless and meet them where they are. They want to be recognized, understood and served on their terms – whether browsing online, engaging with customer support, or in-store.

Customer experience > Data Privacy?

Despite data concerns, consumers are willing to provide their data when they can see the benefits. This is the ultimate value exchange as long as it feels genuine and immediate.

More than half of consumers want AI-powered shopping assistants, and nearly 80% of those who haven’t used AI are curious about how it can improve their shopping experience. 

Retailers that embrace AI and embed it across the entire customer journey will be the ones who get ahead in the competitive landscape.

Let’s break down how AI can transform your CX into four pillars.

Pillar 1: The Power of AI-Powered Search & Discovery

How Generative AI is Transforming Consumer Behavior and Expectations

AI-powered search is reshaping how consumers research, compare, and buy products and is a first step for many retailers looking to unify their shopping experience. By understanding conversational language and contextualizing customer data, AI provides more personalized and targeted suggestions that go beyond simple recommendations.

For instance, rather than just suggesting individual products, AI can respond to broader needs. If a customer is throwing a Super Bowl party, a simple prompt like “I’m throwing a Super Bowl party for 12 people” AI can compile a complete solution, including snacks, drinks, paper plates, and even the perfect TV for game-day viewing.

More than 84% of customers expect to use text-based assistants. This number is up from 42% in 2023, illustrating how consumer perceptions have shifted from AI being an add-on to an essential step in improving their experience.

This ability to anticipate needs and provide holistic solutions provides forward-thinking brands with the opportunity to increase their basket size and deepen brand loyalty.

Pillar 2: Creating a Seamless Shopping Experience

Real-Time Personalization Across Every Touchpoint

When technology is integrated to improve the customer experience- not added as an afterthought – brands and retailers can finally deliver the convenience and flexibility consumers have come to expect.

Personalization is the backbone of a great customer experience, and shoppers today are not settling for a one-size-fits-all experience. And they shouldn’t have to. We’re seeing shopper demands increase as they better understand how brands can work to improve their shopping experiences. As they move across the different brand touchpoints, they expect to be recognized and served relevant contextual information that keeps them engaged and, most importantly, shopping. You don’t want to be one of the brands still playing catch-up.

AI-driven personalization means synchronizing shopping carts, purchase histories, hyper-personalized pricing, and promotions in real-time. From dynamic loyalty programs to tailored product recommendations, AI continuously refines what it offers based on evolving customer needs.

A key differentiator and opportunity here is ensuring the experience feels personal, convenient, and natural; shoppers are far more likely to convert from casual browsers to loyal customers when brands create immersive and engaging experiences.

Pillar 3: AI-Optimized Inventory & Supply Chain Management

Making Real-Time Shopping a Reality

Behind every seamless shopping experience is a robust inventory management system powered by AI. When consumers can’t find what they’re looking for, they’ll go elsewhere—and often never return. AI addresses this challenge by predicting demand, optimizing stock placement, and providing real-time inventory insights.

With AI, retailers can prevent stockouts and wasted trips by ensuring the right products are available at the right time and place. And when the desired product isn’t available, AI can suggest relevant substitutions to maintain customer satisfaction.

AI-powered supply chain intelligence also reduces bottlenecks and streamlines operations, enhancing forecasting accuracy to minimize delays in fulfillment. In a fast-moving consumer landscape where instant access is expected, having a reliable and responsive supply chain is a core competitive advantage.

Pillar 4: AI-Powered Customer Support & Post-Purchase Engagement

Delivering Unmatched Service at Every Stage OR Post Purchase Support – The Golden Goose of CX

Transformative customer experience doesn’t end at the transaction- it extends well into a post-purchase engagement. AI-driven customer support is a critical piece of the puzzle but is often overlooked by brands. Offering customers fast, personalized resolutions will drive brand loyalty and retention.

AI-powered chatbots alleviate much of the pressure on customer support teams by being able to tap into support queries, call transcripts, and purchase history, all in real time, and resolve common issues instantly. 

Loyalty programs also benefit from AI’s capabilities, offering relevant incentives and personalized follow-ups that keep customers engaged long after their initial purchase. When retailers extend AI into post-purchase and support channels, they can transform one-off buyers into loyal advocates.

Our Take 

Instead of the hesitancy we often see around embracing AI, we urge brands to view it as a transformative tool – a way to build deeper relationships and lasting loyalty with customers.

Retailers that integrate AI across the entire customer journey, from discovery to purchase to post-sale engagement, are the ones who will truly stand out. And the need to stand out is more pressing than ever before.

But here’s the key: AI should work for your customers, not just your brand. When implemented thoughtfully, AI delivers personalized experiences that feel natural, convenient, and genuinely helpful. The retailers who understand this will be the ones setting the standard for the future of customer experience.