These companies have recently been innovating in generative AI. By incorporating generative AI into search, Amazon and Walmart can tailor results and provide more product information to customers. Walmart combines AI and AR to bring the physical world into the digital world, enabling shoppers to conduct commerce wherever they are. Klarna’s AI-powered videos also deliver shoppable content to users and expand the time they spend on the platform.
The following is a list of what each company announced last month.
Search party: Both Walmart and Amazon leverage generative AI to enhance their on-site search capabilities and provide more relevant results to users.
- Amazon plans to incorporate AI chatbot capabilities into its search functionality, allowing shoppers to see recommendations, compare products, and ask follow-up questions.
- For example, a user looking to buy a coffee maker will be offered multiple types of machines and can compare features and request more information. Walmart will also allow consumers to search for specific use cases, such as “unicorn-themed toddler birthday party,” instead of searching for plates, banners, and party favors in different search sessions. By doing this, we are testing generative AI within search.
- Similar to Amazon, Walmart’s search helps consumers make decisions by highlighting product features and condensing reviews into concise summaries.
Why it’s important: According to the June 2023 Jungle Scout report, as of Q2 2023, 57% of U.S. consumers started their online shopping search on Amazon and 39% started their search on Walmart.com. Masu. These updates will help retailers stay competitive against traditional search engines and social media platforms like TikTok, which use discoverability to attract shoppers.
To the real world: Generative AI can also help retailers offer a more omnichannel approach that blends physical and digital shopping experiences.
- Walmart is testing a feature that uses AI and AR to provide personalized room design assistance based on a customer’s budget, theme, and other preferences.
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Klarna’s in-app shopping lens can visually identify over 10 million products and match them to products sold in stores in Klarna’s database, allowing shoppers to see details, price, retailer, You can compare reviews. Lenses also display similar items that match the style of the initial product.
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Amazon Ads’ latest AI-powered image generation tools help advertisers create more appealing ad images by placing products within a specific context, such as a toaster on a kitchen counter instead of a solid white background. will help you create. According to Amazon, ads with products in context can have a 40% higher click-through rate compared to ads with standard product images.
Why it’s important: According to our forecasts, the number of U.S. consumers shopping using AR will grow by 13.9% to 47.6 million in 2024.
Happy scrolling: With our predictions that the time US consumers spend on digital video will increase to 3 hours and 33 minutes next year, Klarna will use its AI-powered shoppable video feed to connect consumers to the platform. I am keeping it there.
- According to Klarna, the feed will provide users with an array of content from brands and creators, featuring unboxings, tutorials, reviews, product drops that can be purchased directly from the video, and more.
- These videos increased average watch time in the US by 60% and increased click-through rates by 25%.
Why it’s important: Shoppable video content is the No. 1 feature that ad agency experts say will be the next frontier in retail media, according to April 2023 data from the Path to Purchase Institute. Our forecasts show that retail media ad spending will more than double from now until 2027, and retailers experimenting with up-and-coming ad formats will see additional revenue from advertisers. more likely to get .
With great power comes great responsibility. As retailers continue to integrate AI into their businesses, they need to find ways to alleviate concerns about technology safety and security.
- Walmart has signed a Responsible AI Pledge that sets out how the retailer plans to use the technology. The pledge is centered around six promises, including transparency, security, privacy, fairness, accountability and customer centricity.
- Amazon also promises to reduce AI risks, particularly around safety, security, and consumer trust.
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