The robots are taking over — your local shopping district.
Artificial intelligence is transforming retail and e-commerce through purchasing recommendations, shopping assistants, demand forecasting, generative selling tools and, most recently, autonomous checkout features. As of 2025, Shopify reports that nearly 90 percent of retailers actively use or are considering AI in their operations. Meanwhile 87 percent say the technology has had a positive impact on their revenue. And this number only appears to continue growing, with AI companies developing new features to streamline e-commerce even more.
How Does AI in Retail Work?
AI enhances experiences for both customers and businesses, especially in the areas of retail and e-commerce. By collecting gobs of consumer data and feeding them into machine learning algorithms, retailers are able to spin up sophisticated, AI-powered personalization, recommendation and automation features, all of which have become commonplace throughout the shopping experience. These features simultaneously speed up operations and improve customer interactions, which increase revenue and resources for companies.
What Does AI in Retail Look Like?
Technology like chatbots — the non-human customer service beings trained to engage in human-like exchanges online — are just the start of AI in retail.
Well-established AI voice recognition programs like Amazon’s Alexa are being integrated with other devices like Amazon’s Fire TV. AI algorithms help companies analyze massive amounts of data culled from consumers’ online behavior to provide “predictive sales” insights that are used in part to make sure warehouses are strategically well-stocked.
Those warehouses, by the way, might use robots for sorting, packaging and other manual tasks so human workers can focus on other aspects of the business. Then there are recommendation engines that analyze past searches to suggest related products and services, AI-powered visual recognition programs that help prevent counterfeiting and AI copywriters that churn out SEO content for websites.
One of the newer forms of AI in retail involves agentic solutions. Using individual AI agents, chatbots and web browsers can find and purchase products autonomously based on user intent. Although it is an exciting new form of e-commerce, its use remains limited to a few platforms and is already coming under legal scrutiny from the largest players in the industry.
Check out these ways in which artificial intelligence is reinvigorating retail and e-commerce.
Examples of AI in Retail and E-Commerce
Amazon’s Rufus Shopping Assistant: Rufus is a generative AI tool that serves as a shopping assistant. Through Amazon's e-commerce platform and mobile app, Rufus helps customers find products through back and forth conversation and can also answer questions about specific products and compare similar products. Rufus was trained on the company’s product catalog, customer reviews and product detail pages, making it also useful after purchasing a product for questions about care and maintenance.
Alibaba’s Shopping Chatbots: Alibaba is one of the largest e-commerce platforms in the world. To simplify product searches, it uses a combination of chatbots to help customers find what they’re looking for and provide general assistance. Its Wanxiang-bot, for example, helps merchants create product images and videos. And the Alime bot provides online and phone customer support.
eBay’s Magical Listing Tool: eBay’s Magical Listing tool is an AI feature that helps vendors create product listings. It works by using a generative engine to analyze a product image uploaded by the vendor and then suggests a title, description, category and other details. According to eBay, the tool helps vendors save time when listing new products by eliminating nearly half of the required manual steps.
OpenAI’s Agentic Commerce Protocol: OpenAI’s Agentic Commerce Protocol recommends products related to users’ ChatGPT searches when it detects shopping intent. Co-developed with Stripe, the feature also enables instant checkout without navigating to the seller’s website. It currently works with partner retailers such as Etsy, Shopify, PayPal and Walmart. At present, it only supports single-item purchases, though its partnership with Walmart may eventually allow multi-item transactions.
Lowe’s’ Mylow Companion: In 2025, Lowe’s launched an AI-powered assistant called Mylow Companion to help associates improve customer experience on the sales floor by answering questions, providing product recommendations and offering suggestions to support home improvement projects.
Rokt’s Brain and Network Platforms: Rokt helps companies make transactions relevant to consumers at the crucial moments when they’re ready to buy. The company’s Brain platform uses artificial intelligence to analyze customer data in real time and determine the best course of action during checkout. And its network product aims to ensure customers don’t get overwhelmed by choices, which can impede their choice to transact. Rokt works to determine the most effective e-commerce experiences for individual customers.
Route’s Product Recommendations: Brands work with Route to improve their online shopping experience by providing customers with solutions for package tracking, shipping protection and carbon neutral shipping. Route also offers tools for customer engagement, such as AI-powered product recommendations that are intended to help businesses boost their sales.
Klaviyo’s K:AI Agents: Klaviyo provides a SaaS marketing-tech platform that targets customers based on predictive insights and uses AI to create personalized automations. Beyond predictive insights, Klaviyo developed K:AI agents capable of autonomous creating marketing campaigns and providing customer support.
Hungryroot’s Smartcart Tool: Hungryroot is a food recipe and delivery service providing a myriad of vegan, gluten-free and other dietary meal options to choose from. Based on user activity and input, its platform uses AI to create personalized recommendations and rotating recipe selections to include for the next delivery.
InVia’s Autonomous Picker Robots: Claiming the world’s first “robotics-as-a-service” platform, inVia Robotics makes advanced AI-powered “picker” robots for supply chain and e-commerce distribution center automation. The robots can work alongside humans without disrupting operations, ideally yielding higher productivity and lower labor costs. In 2022, inVia Robotics teamed up with e-commerce fulfillment company Fulfyld to begin automating their warehouse operations.
Anaplan’s Predictive Intelligence Platform: Combining analytics and big data, The Anaplan Platform helps retailers keep current customers and find new ones. Employing real-time scouring of websites, social media and other places, the company applies predictive data toward customer recommendations and forecast business outcomes. Anaplan’s predictive insights have been used for sales and supply chain targeting by companies such as AWS and Coca-Cola.
Upside’s Personalized Offers: Upside’s mobile app encourages consumers to shop at brick-and-mortar businesses like gas stations and grocery stores by providing them with cash back rewards. Upside uses AI to power personalizations for its users with the goal of enhancing the retail shopping experience and driving profits for businesses.
Mondelēz International’s Research and Development Tools: Mondēlez International makes snack foods on a global scale. Responsible for beloved iconic brands like Oreo and Toblerone as well as newer favorites like Tate’s Bake Shop and Clif Bar, the company uses AI as part of its tech stack to augment innovation and efficiency in its research and development processes. In new product development and cost evaluation, Mondelēz International’s use of AI allows for accuracy and efficiency beyond human capacities.
Perplexity’s Comet Browser: Perplexity’s Comet browser was designed to simplify internet searches, including shopping. Through its Shop Like a Pro feature, users can research and purchase products via a conversational chatbot, eliminating the need to visit a retailer’s website to complete the transaction. Currently, this feature works only with Shopify storefronts and is available exclusively to Pro members.
Zeta’s Athena Platform: Zeta Global combines AI and marketing automation to identify potential customers and personalize experiences. With the technology, users can also automate marketing activities and apply data insights to strengthen customer relationships.
Smartly’s Social Media Advertising Platform: Marketing technology company Smartly specializes in AI-powered social media advertising, trusted by globally recognized brands like Uber and eBay. Through its platform, Smartly.io enables brands to automate social advertising processes, including campaign management and creative production, while leveraging artificial intelligence and data capabilities to optimize advertising strategies across multiple channels. With a comprehensive suite of SaaS tools, the company aims to minimize manual tasks, expand customer reach and transform customers’ existing assets into branded, short-form content.
Clarifai’s Content Classification Engine: Clarifai’s AI-powered recognition platform helps classify images, videos, audio and text plus moderate content. For other data that might evade AI’s radar, human moderators can be added to the mix for an extra degree of accuracy. In the e-commerce industry, its AI classification system helps provide better product recommendations and even enhance onsite and offsite SEO through automated data labeling.
Mirakl’s Target2Sell Platform: Mirakl’s software solutions for retail and B2B companies include Mirakl Target2Sell, which uses AI to tailor shoppers’ product recommendations. The company says this offering is designed to help businesses increase revenue and conversions. It also generates insights based on factors like customer behavior, product ratings and customer reviews that users can analyze to understand and optimize their digital marketplace’s performance.
IBM’s Watson: IBM’s Watson uses AI to help retail companies create more personalized purchasing experiences using real-time data that more accurately reflects a customer’s current buying status. Retail businesses such as Frito-Lay, Home Depot and others use IBM’s AI technology to streamline supply chain operations and make shopping unique to each customer.
Topsort’s Omnichannel Retail Media Platform: Topsort specializes in AI-based retail media infrastructure, and its omnichannel platform is designed to help businesses leverage AI to optimize media campaigns and drive growth throughout various stages of the shopping experience. Retail and e-commerce companies across more than 40 countries use Topsort’s technology.
Cox Enterprises’ Esntial Tool: Cox Enterprises is a diversified corporation operating in the media, automotive and telecommunications sectors, with key subsidiaries including Cox Communications and Cox Automotive. As a tech company, Cox Automotive owns Autotrader.com and Dealer.com as well as the iconic Kelley Blue Book brand. The company uses artificial intelligence and machine learning in its Esntial tool, a web-based platform that aims to “optimize the sales process” by estimating car loan payments and helping assess borrower risk factors so customers can transact immediately online.
Mixbook’s Auto-Create Tool: Mixbook is a platform for creating custom photo products, like photo books, cards and calendars. According to the company, it offers a variety of design tools, themes and templates, along with an AI-powered auto-create feature that automatically designs photo books.
Fellow AI’s Autonomous Warehouse Robots: Fellow AI uses image recognition to provide real-time inventory management. One of its robot models, NAVii, is equipped with data capture cameras and can travel up and down building aisles to view what items are present. Home improvement retail chain Lowes uses Fellow robots (“LoweBots”) in some locations to help customers and monitor inventory in real-time.
Frequently Asked Questions
How is AI being used in retail and e-commerce?
AI powers chatbots, product recommendations, demand forecasting, automation tools and even autonomous checkout systems that improve operations and customer experiences.
What are examples of AI technologies used by major retailers?
Companies like Amazon use AI shopping assistants, eBay offers generative listing tools, and OpenAI enables instant checkout through its agentic commerce protocol.
How does AI improve the customer shopping experience?
By analyzing consumer behavior and purchase history, AI can offer personalized product suggestions, simplify transactions and enhance customer service through conversational tools.
What benefits do businesses gain from AI in retail?
Retailers report faster operations, smarter inventory management, better marketing efficiency and increased sales through predictive insights and automation.
