• by Ray Schultz , Columnist, August 18, 2023

Retailers worldwide are scrambling to keep up with ever-changing shopping patterns. And many are using generative AI to help, judging by Connected Shoppers Report, a global study released Friday by Salesforce. 

Case in point: 56% are already using generative AI to write personalized marketing emails, and 40% are considering it. And 58% deploy generative AI to produce creative assets for websites and email, while 39% are considering such a move. 

Moreover, 54% utilize generative AI to create personalized promotional offers and 53% to auto-generate personalized product descriptions.  

Of course, as the study notes, "It’s not yet clear if retailers are actually implementing generative AI in their workflows, or still experimenting."

And, in general, they are using generative AI to:

• Generate product recommendations for store associates to use in-store — 59% 
• Create a conversational digital shopping assistant to help shoppers find the right product or service — 55%
• Create virtual models for product retail pages — 52%
• Create personalized product bundles — 51% 

Overall, 92% of retailers say they are investing more in AI this year.  

The results are surprising, given the newness of the technology. 

Shoppers are also interested in generative AI, perhaps to a more limited degree. Of those polled, 52% are interested in using it for researching electronics and appliances, 18% very much so. 

Moreover, 44% say the same about getting outfit/wardrobe inspiration, with 16% very interested. And 15% are enthused about creating meal plans and 14% getting beauty recommendations. 

This is happening as the retail industry shifts inexorably to ecommerce. By 2025, stores globally estimate that 44% of purchases will be in-store, down from the post-pandemic year of 2023. 

But that total will be 39% in the U.S., the remainder relying on brand websites or shopping apps (14%), retail websites or shopping apps (21%), online marketplaces (18%) and newer digital channels and delivery apps (10%).  

Retailers face these challenges as their margins remain under pressure:

• Increased competition
• Shipping costs
• Supply chain difficulties
• Changing customer expectations/behaviors 
• Inventory management

But opportunity exists in these capabilities:

• Improving customer service
• Growing ecommerce 
• Improving personalization
• Improving efficiency 
• Increasing store associate productivity 

Of the retailers surveyed, 57% say they have the full ability to use data to personalize. And 37% claim moderate ability. 

As for customer service, it is truly a multi-channel activity, with email leading: 

• Email — 79%
• Phone — 78%
• In-person — 76% 
• Online chat/live website — 75%
• Social media — 75%
• Text/SMS — 75%
• Customer portal — 74%
• Mobile app — 73%
• Knowledge bases — 73% 
• Online forms — 73% 
• Messenger apps — 72% 
• Online communities/discussion forums — 71% 
• Video support — 69% 

Meanwhile, retailers are using generative AI to:

• Generate personalized responses for agents to quickly email or message customers — 57% 
• Power chatbots for service — 54% 
• Automate creation of knowledge base articles — 53%
• Create summaries of customer service cases — 52% 

There is great urgency to all this, given that 74% shoppers will jump after three bad experiences.  

Salesforce surveyed 2,400 shoppers and 1,125 retail leaders across 18 countries from May 18 through June 21, 2023.