How Generative AI-Solutions Can Revolutionize Retail

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Generative AI solutions in retail: Increasing efficiency and streamlining processes


Julia Rose
Marketing & Design
02. May 2023

With the increasing popularity of generative AI technologies such as ChatGPT (OpenAI), more and more companies are looking for ways to integrate artificial intelligence into their daily workflows. In fact, generative AI has the potential to revolutionize various industries, including retail. Today, generative AI solutions are already being used to overcome challenges, simplify tasks, and optimize processes. 

In this article, we will focus specifically on retail and take a closer look at how generative AI can be used in this field. You will learn how generative AI can influence the future of retail and what such a solution might look like.

What is generative AI, and why has it gained popularity?

Generative AI is a branch of artificial intelligence that uses extensive neural networks and large language models for text and diffusion models for images to generate new and unique content such as images, videos, audio files, texts, music, and much more. 

Unlike other forms of machine learning that are optimized for specific tasks such as text classification or language translation, generative AI models are designed to generate new and diverse results based on patterns in the underlying data. This makes them suitable not only for a single, but for a wide range of applications, such as creating product descriptions, answering emails, or developing intelligent virtual assistants. Therefore, this technology is gaining popularity and can enable for example the development of completely new products and services.

Generative ai im einzelhandel
Generative AI solutions in retail: Examples

Generative AI solutions have the potential to fundamentally change retail by supporting numerous use cases, from virtual assistants to the creation of personalized product images. This list presents some examples of the use of generative AI in retail and demonstrates how companies can benefit from this technology.

  1. Virtual assistants in customer service: Imagine being able to offer your customers fast and personalized customer service around the clock. With virtual assistants in retail based on generative AI, you can do just that. These solutions can quickly and accurately respond to customer inquiries and provide personalized recommendations based on purchase histories and customer feedback. While traditional chatbots are typically limited to predefined answers or scripts and therefore can only answer simple questions, the next generation of virtual assistants in customer service use generative AI to understand natural language and respond to complex queries and requests. They are able to generate context-specific and personalized answers based on the individual customer’s request. 
  2. Improved customer experience: Conversational commerce, powered by generative AI technologies such as GPT-3/GPT-4, can better support product discovery and provide more relevant options. This can lead to higher conversion rates and an increase in average basket size by supporting customers with personalized recommendations and more relevant options. An example would be combining the search bar with generative AI, where a model responds to the customer’s input and generates new suggestions based on the customer’s input. So the customer could directly ask for information that the generative AI filters and summarizes from a database. Instead of using specific keywords, the new generation of search engines, could propose items based on general queries, such as “the items I need for a 2 weeks hike in the Alps”. 
  3. Consistent product descriptions: New advances in AI make it possible to automatically standardize and grammatically correct descriptions. Copywriters can use generative AI to create standardized product descriptions that match the desired brand tone. This could significantly speed up creative processes and increase productivity. 
  4. Personalized product images: E-commerce sites often use generative AI to generate personalized product images that better match the customer’s preferences. By analyzing customer data and using algorithms, generative AI can generate product images that are tailored to the individual customer’s preferences and needs. 

From generating new product concepts to creating personalized product images, businesses can benefit from advanced technology. Generative AI provides a promising way for retailers to enhance their products and services in innovative and effective ways. But how can one utilize generative AI for themselves and their company? 

Introduction to Using Generative AI 

To take advantage of the benefits of generative AI, retailers should now start integrating technology into their business models. The following approach has proven to be successful:

  1. Identifying a suitable use case and collaborating with AI specialists to evaluate the use of generative AI. 
  2. Creating a proof of concept to test the effectiveness of the technology. 
  3. If the proof of concept is successful, models are created and configured to scale the use of the technology in various use cases. 

There are usually many alternative solutions or algorithms for most use cases. An expert can help you find the right solution before complex models such as GPT-4 or other Large Language Models (LLMs) are deployed. It should be noted that generative AI is not a universal solution to all problems, but it is particularly suitable for use cases where content creation plays a role.

Tailored Generative AI-Solutions: A Forward-Looking Option 

Overall, there are various ways in which generative AI can optimize and personalize retail. This technology has the potential to help retailers stay competitive and offer customers a personalized and seamless experience. 

The experts at can help you develop tailored generative AI solutions that meet your specific needs while meeting the highest standards of privacy and security. Contact us today to learn how we can help you optimize your retail strategy and strengthen customer loyalty.