Unboxing the Future of Shopping: Fighting AI with AI

amit mauryaInformation Technology, Resources

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Retail, since the dawn of man, has always been an industry of firsts—a landscape teeming with challenges and opportunities. From the first barter to the introduction of currency or the first strip mall to the revolutionary rise of online shopping, the retail sector has consistently been at the forefront of historical disruptions. 

You might be wondering why I didn't write "disruptive technology". In today's world, the root cause of most retail challenges lies in our innate human need to belong and feel important. This sets expectations for what retailers sell, how they engage customers, and even how they deliver hyper-personalized experiences. Retail Anthropology, the study of consumer behavior, now drives strategic decisions. With AI omnipresent, customer experience providers must adapt at breakneck speed. 

Let's Get Ready to Rumble 

In the retail industry, the impact of AI is undeniably urgent. AI is now influencing every aspect of the retail business model, ranging from merchandise development and sourcing to logistics, store operations, and customer experience. It's safe to say that AI is everywhere.  

To understand the current impact of AI on retail operations, let's explore three Then and Now examples. 

Trend forecasting 

THEN - Retailers rely on historical data and market research to predict trends. Companies such as Levi Strauss, Zara, and Victoria's Secret have deployed retail anthropologists to study brick and mortar and online shopping behavior.  

NOW - With AI-powered predictive analytics, retailers can forecast trends and customer preferences accurately. This technology enables explosive volumes of tailored product offerings and targeted marketing strategies, ensuring a personalized shopping experience. By harnessing advanced analytics, retailers make data-driven decisions that drive growth through dynamic inventory and accelerated product development. 

Personalized shopping experience 

THEN - Luxury retailers have long been using Client Advisors to provide a personalized shopping experience for their VIPs, ever since the first LV purse was purchased. Some other major brands also harness the power of data analytics to equip client associates and support agents with valuable information, aiming for a more customized experience (although results may vary). 

NOW - AI-powered virtual assistants are changing the game when it comes to shopping. They offer personalized guidance that is tailored to your preferences, thanks to their smart algorithms. These advanced assistants are with you every step of the way, recommending products and providing invaluable assistance. Not only do they enhance customer satisfaction and engagement, but they also gather important data for trend forecasting and analysis.  

Efficient inventory management 

THEN - Traditionally, inventory management in the retail sector has been a manual and time-consuming process. Retailers have relied on employees to physically count and keep track of stock, a method prone to human error and inefficiency. 

NOW - Today, AI has transformed inventory management with sophisticated technologies such as real-time tracking and automated restocking. AI-powered platforms offer predictive analysis that aids in foreseeing future demand patterns, enabling retailers to maintain optimal stock levels, minimize wastage, and maximize profitability. Moreover, technologies such as RFID, IoT, and drones are utilized for real-time tracking of inventory, significantly reducing discrepancies and enhancing the accuracy of inventory data.  

Win by Knockout 

Despite the transformative power of AI in the retail sector, it also brings forth a host of customer support issues that need careful consideration.  

AI-powered trend forecasting is accelerating product development, raising the bar for personalized support. This, alongside shifts in inventory management, is increasing the demands on customer support agents. Agents now require in-depth knowledge of fast-evolving products and must keep pace with social media-savvy customers who are informed about product launches before industry insiders. While improved inventory management shows potential, there's a risk of excessive optimization causing more stockout complaints, necessitating real-time data and swift communication from operations. 

To combat these challenges, customer support providers can leverage Generative AI solutions in various ways.


Using performance analytics and customer contact trends, Generative AI creates personalized training programs for each agent, focusing on improvement and upskilling. New chatbots powered by generative AI elevate inquiry handling and deliver instant support. These algorithms enable the Agent Support bot to provide consistent responses for complex decisions, ensuring uniformity regardless of individual agent objectivity. 


Generative AI enhances agents' capabilities, providing real-time insights and suggestions to optimize customer interactions. AI-driven insights enable prompt, tailored responses, addressing each customer's unique situation. Continuous learning and adaptation refine responses, leading to a comprehensive understanding of common customer issues and best resolutions. This personalized attention improves the customer experience, fosters loyalty, and builds trust in the brand.


AI chatbots and virtual assistants provide 24/7 support, handling common inquiries to free up human agents for more complex issues. Equipped with Generative AI insights from deep customer and cohort data, agents can offer white glove service and targeted recommendations, helping retailers drive future purchases and reduce refund/exchange activity. To achieve the best customer experience, a hybrid model of AI and human intelligence is necessary. AI handles data-driven tasks and predictive functions, while human agents bring empathy and the ability to handle complex situations. This combination ensures a dynamic and customer-centric approach to retail industry challenges. Generative AI is not just a solution; it will address challenges and pave the way for a more efficient, personalized, and customer-centric future. Learn how IGT Solutions can help you adopt Generative AI with TechBud.AI. It is an enterprise-wide Generative AI platform that enables you to enhance efficiency and productivity across different functional and enterprise areas. Some of the retail-focused co-pilots like Product Comparison CoPilot, Customer Support CoPilot, and Refund CoPilot are set to be a transformative ally for the retail and e-commerce industry.

Connect with our Generative AI experts for a deeper understanding of the transformative tech.


Pedro is a customer experience expert passionate about driving organizational success through customer-centric strategies and innovative solutions. With over 20 years of experience in the CX industry, Pedro has honed his skills in creating seamless and memorable solutions that foster customer loyalty and brand advocacy for emerging brands & some of the most prestigious organizations on the planet.