Table of contents
AI Agents are software systems that are designed to automatically perform given tasks, interact with users, and make decisions using artificial intelligence. They simulate the intelligence of humans to provide recommendations, solve problems, and offer personalised experiences in various sections such as shopping, finance, and more. With the ability to personalise communication, analyse, predict, and process trends and data, AI Agents have also become crucial tools for consumers and brands. The Salesforce shopping index found that the generative AI has given a 7% hike in average order revenue and 17% in global orders through personalised recommendations, targeted promotions, and increased customer engagement.
For Brands and Retailers
AI Agents are present from the beginning until the end of a product. They can analyze social media data, global trends, and consumer behaviour for the designers to know. The Fabricant, a digital fashion label, utilises AI to design virtual garments according to budding trends, decreasing waste through physical prototyping. A trend forecasting channel named Heuritech uses AI to forecast trends by analysing social media images of various fashion and luxury brands.
In production, AI Agents optimise the supply chains accordingly to reduce waste and improve sustainability. Adidas incorporates AI-based robotics for a precise manufacturing process, decreasing material waste while speeding up production. Stony Creek Colours is a sustainable dye manufacturer that uses AI to monitor, analyse and optimise the production of dyes from plants for textiles.
AI Agents refer to the sales data and market trends to prevent under- or over-production. The fashion retailer Bestseller leverages AI Agents to forecast inventory across its stores globally. Burberry has AI for predicting the right stock levels in every product line.
They can power virtual try-on tools to assist customers. Zara launched AR-driven mirrors in stores, offering customers the experience of visualising their outfits. Nike Fit is an AI-enabled app that scans the feet of customers to find the correct shoe size to enhance comfort and fit. Sephora has a Virtual Artist to let customers try on makeup products digitally. Warby Parker has a virtual glass try-on tool.
Customer engagement is another way for brands and retailers to use AI Agents, which can help in creating hyper-targeted marketing campaigns. Gucci had AI chatbots on its website to offer 24/7 customer support and recommendations on products. Levi's has AI to analyse customer data to create personalised ads and emails.
Brands and retailers leverage AI Agents to have the right products available at the right price and time. H&M employs AI agents to adjust the pricing based on competitor analysis and product demand. Walmart has the technology to predict demand and optimize inventory to ensure the products remain in stock.
When it comes to in-store experience, AI Agents act as the bridge between offline and online shopping. Uniqlo IQ is an AI assistant that offers product suggestions and styling advice in physical stores with a phone app. Nike has House of Innovation stores that employ AI to personalise the in-store experience, like scanning QR codes to book fitting rooms or learn more about a product.
For Customers
On the other hand, AI Agents can be a potential and friendly tool for consumers in their shopping by providing a personalized and immersive experience. They can be the virtual stylists and assistants that guide the customers through tailored recommendations. H&M leverages AI chatbots to offer styling ideas, product availability, and help in choosing outfits. Alexa of Amazon leverages voice shopping that allows users to find, order, and reorder products.
AI Agents analyze the preferences, habits, and browsing history of the customers to offer hyper-personalised recommendations. Zalando provides personalisation which features AI-curated fashion choices based on one’s data and preferences. Stitch Fix is another fashion retailer that combines human expertise with AI to send a curated selection of clothing created to one’s style profiles.
They also drive the consumers to shop with a consciousness of sustainability by offering insights into the products’ history and impact on the environment. ThredUp is the AI-powered pre-loved shopping platform that helps customers to find sustainable items. Good On You, an AI-driven app, rates brands according to their sustainable and ethical practices, helping the buyers to make an informed decision.
Simultaneously, AI-driven search tools such as OpenAI, ChatGPT, and Perplexity deliver a context-known, quick response that challenges traditional search engines to refurbish their strategies. These chat portals can offer back-and-forth interactions with consumers and assist them in various domains including shopping.
AI Agents enable the consumers to search for items using voice commands and images. Google Lens allows users to search for products by uploading images and determining similar products quickly. ASOS offers visual searches to assist customers in finding clothes similar to the photos they uploaded.
AI-powered agents can streamline checkout processes through quick and seamless payments. Shopify has AI-driven payment gateways to offer personalised and secure checkout. Amazon Go stores leverage AI to enhance the ‘Just Walk Out’ technology, where the customers can take the products and process payments automatically upon exit.
Cover Image: Nike Fit App, courtesy Dezeen.