Trends in AI-Driven Commerce Innovations

AI's Impact on Retail: 6 Key Themes I'm grateful for Angela Clark, Fiona Tan, Rebecca Wooters, and Alex Friedman's collaboration on our AI panel at Women in Retail Leadership Circle. A few people asked for the highlights, so here are the key themes we covered: 1. AI is a technology tool but can’t be fully leveraged without a definitive business strategy & clear objectives in mind. Essentially, what is your business trying to achieve? Then, what data do you need, and how can AI help you efficiently solve the challenge? 2. Theory is critical in the 1st phase of innovation, but operators quickly move to the 2nd phase = execution. In order to do this well, we all agree you will change processes, which requires spending time with teams, establishing clear KPIs & a feedback loop. 3. All AI initiatives should have specific KPIs (e.g., increase ROAS, increase CSAT, decrease wait times etc.). 4. The first wave of AI deployment in many retail companies involved similar applications & focused on the marketing function -- via connecting further with the consumer & driving efficiency: - Improve customer service via recommendations, alternative services & overall guidance. - Generate creative assets – taking the 1st pass at SEO copy, SEM ad copy, or product description copy. - Create internal team efficiency – recap meetings, free up our talent to use their skills on more impactful work vs. repetitive tasks. - Monitor competitive trends – scraping pricing, new SKU data + flagging search volume insights, etc., to leverage cross-functionally to make better decisions. - Optimize & automate allocation of your marketing spend across channels. - Improve product discovery via delivering the optimal product assortment, at the right price, and in a personalized way (e.g., email, landing page to virtual try-on). 5. The 2nd wave of AI delved into other functional areas of the retail business from operations, sales etc.: - Solve distribution choices – analyze which new doors/geographies you want to expand into. - Inform inventory allocation based on past weather models. - Create synthetic personalities or target consumers (“Sarah”) & use them as a virtual focus group regarding product innovation, shopping behavior, marketing messaging, etc. - Increase speed to market with code assistants for developers. - Summarize customer feedback from emails, text & generate actionable insights for cross-functional teams. - Combat returns - synthesize data to figure out which SKUs are being returned, correlate this to the reason & adjust the product copy accordingly. 6. Some of the concerns raised around AI included: - Ensuring your skills evolve as quickly as AI given the rapidly changing landscape. - Bias & misinformation. - Keeping up with IP laws & regulations, data privacy. - Operating model changes & disruptions. - Employee training. I would love to hear about other ways companies are leveraging AI to get closer to their consumer & drive true value creation. #AI #Innovate

AI in eCommerce isn't just a trend—it's transforming the industry. Here's how AI is reshaping online shopping forever: 1. Personalizing suggestions Based on past purchases or browsing behavior, AI tailors product recommendations to fit your interests. Suppose you've recently explored mindfulness books or searched for trekking tips—AI might then suggest meditation aids or comfortable hiking boots for you. 2. Predicting trends AI is incredible at forecasting broad shifts in consumer behavior. Consider the sudden rise in popularity of sustainable products a few years ago... Had AI been in play, businesses could’ve recognized this shift earlier — allowing them to adapt their product lines and marketing strategies in anticipation. 3. Spotting improvement areas AI helps online stores understand their customers better. Let's say many of your shoppers leave the site after seeing the shipping fees. AI can identify this issue, and from there, you can make necessary changes like offering shipping deals to boost sales. 4. Automating tedious tasks Pair AI with tools like Zapier, and time-consuming tasks like data entry, order syncing, and customer notifications become effortless — letting you focus on the bigger picture. 5. Navigating economic shifts In challenging times, AI can analyze buying patterns to identify resilient niches. During a recession, AI might see a surge in demand for budget-friendly fashion or e-learning resources—allowing businesses to pivot or adjust their offerings accordingly. 6. Boosting sustainability Minimize waste, maximize utility. AI points the way toward more sustainable eCommerce practices, like optimizing inventory to reduce overstock waste, exploring eco-friendly packaging options, and streamlining supply chains for lower carbon footprints. At its core… AI isn't just a tool. It's a catalyst — igniting innovation, revealing hidden opportunities, and personalizing buyer journeys. But it's up to us to make our brands resonate. Because shopping is, and always will be, a human experience. PS: We just helped one store boost sales by 105% while boosting overall sessions by 20%+. DM me if you want the same results.