AI for the retail sector: Transforming customer experiences

While bricks and mortar shops remain important to many consumers, there can no longer be any doubt that retail brands with growth on the agenda must also have an excellent omni-channel brand presence. With consumer expectations high and rising, retailers must know how to create friction-free, highly personalised customer journeys across multiple digital platforms.

Today, the power of AI is reshaping shopping experiences and retailers that stay at the forefront of change will certainly reap the benefits.

But which AI strategies should retailers prioritise in 2025 and beyond?

How can AI boost retail success?

According to a 2025 ecommerce study, 49% of retail customers start and end their shopping journeys on websites or apps. So how can you make sure you provide an engaging, cohesive experience across every customer touchpoint; from your website and app, to automated chats and social media platforms, as well as in person?

Here are four things to prioritise for a high impact, AI-powered customer journey:

1. Personalised shopping journeys

Personalisation is no longer a luxury; it's an expectation. AI algorithms can analyse customer data to deliver personalised product recommendations, targeted promotions, and customised shopping experiences across multiple platforms. This level of personalisation enhances customer satisfaction, increases engagement, and drives conversions. The first step is ensuring a single truth source with a unified data and analytics platform. This case study shows how Pentland Brands did it.

2. Flawless customer service

In the fast-paced digital world, maintaining a customer-centric approach is paramount. Out-of-the-box chatbot solutions can sometimes be frustrating and unhelpful to the customer. Still, if implemented correctly with a sufficient data-set, AI-powered chatbots can provide instant and seamless customer support, answering queries, resolving issues, and offering personalised assistance – with 24/7 availability.

3. Sustainable practices

Consumers are increasingly eco-conscious, demanding sustainable practices from the brands they support. Retail brands can respond in a number of ways, including embracing eco-friendly packaging, optimising AI-powered logistics for a reduced carbon footprint, and adopting cloud practices that lessen the environmental impact of cloud computing. By communicating their sustainability efforts transparently they can build trust and appeal to environmentally conscious shoppers.

4. Supply chain shuffle

Global supply chains are facing disruption from a range of sources, from geopolitical events to natural disasters. Online retailers should diversify sourcing, enhance supply chain visibility and resilience, and call on the latest AI technology to optimise inventory management.

Vertex AI Search: Your retail advantage

For retail brands that want to give their customers a supercharged digital experience, Google Cloud’s Vertex AI provides a powerful and versatile solution.

By analysing customer data including purchase history, browsing behaviour, and demographics, Vertex AI can power recommendation engines, targeted promotions, and customised search results. What better way to increase customer engagement, raise conversion rates, and boost customer loyalty?

Want to do more with AI? Here are some of the other ways Google’s Vertex AI Search can support your retail business to secure that all-important competitive edge.

Optimised inventory management

Accurate demand forecasting is a business critical process for retailers. Vertex AI's machine learning capabilities can predict future demand with greater precision than traditional methods. This helps minimise stockouts, reduce overstocking, and optimise warehouse operations, ultimately improving profitability.

Enhanced operational efficiency

From automating customer service inquiries with chatbots to streamlining supply chain logistics, Vertex AI can automate a wide range of retail operations. This frees up valuable employee time, reduces operational costs, and allows your team to focus on higher-value tasks like strategic planning and customer relationship building.

Data-driven decision making

Vertex AI provides retailers with powerful analytics tools that can extract meaningful insights from vast amounts of data. By understanding customer trends, market dynamics, and product performance, retailers can make informed decisions about pricing, product assortment, marketing campaigns, and overall business strategy.

Scalability and flexibility

As your retail business grows, Vertex AI can scale to meet your evolving needs. The platform is designed to be flexible and adaptable, allowing you to easily integrate new data sources, deploy new AI models, and customise solutions to fit your specific requirements. This future-proofs your investment in AI, ensuring it continues to deliver value as your business expands.

 If you know that you want to create incredible customer experiences, but don’t know where to start, it might be time to call on an expert partner.

Qodea can help you transform how data works for your business, and how customers experience your retail brand online. Talk to us today to find out how we can implement and optimise Vertex AI, giving you the tools you need to turn browsers into buyers, and customers into loyal fans.