Smart retail marketers know they need to get ahead of the curve when it comes to digital transformation—because artificial intelligence (AI) has entered the retail landscape (and it's about to reshape the entire industry.)

McKinsey data predicts AI will unlock a staggering $240 billion to $390 billion in economic value for retailers, transforming everything from how we shop as consumers to how retailers manage their operations. As a result, retailers are finding innovative ways to navigate this complex landscape and tap into AI's potential in retail.

But how do consumers want to see AI used in retail? Data from a Future Commerce report emphasizes three main areas: consumer empowerment, context, and simpler payment methods.

Retailers who find innovative ways to tap into this earn a real advantage via AI. Thanks to modern tech, it’s becoming easier than ever.

AI Use Cases for Retail

The use cases for AI in retail are growing by the minute. “Last year, our Connected Shoppers' report showed that 17% of shoppers used Gen AI for product inspiration. 14% of them were very interested in using it for beauty recommendations. Now shoppers are showing how to use ChatGPT to get skincare recommendations,” said Michelle Grant, Insights & Strategy at Salesforce. Let’s look at a few in more retail use cases for AI in detail.

Virtual and Digital Assistants

Virtual shopping assistants are revolutionizing how we shop. These AI-powered helpers act like your personal shopping assistants who know exactly what you're looking for. What’s most impressive: they’re uncannily good at making product recommendations based on data from browsing history, past purchases, and style preferences.