AI-Driven Personalization: Tailoring the Customer Experience

While the idea of Artificial Intelligence (AI) took the world by storm in 2024, the follow-through didn’t exactly land how many might have anticipated. With so much still to learn about the technology, many brands encountered a number of challenges in executing its deployment. It shouldn’t be a surprise that the AI takeover hasn’t quite materialized yet across retail. 

However, as the industry settles into 2025 with more realistic expectations around the role that AI can play in technology implementation, the power of artificial intelligence is still clear for all to see. Its capability to help brands personalize the in-store customer experience can transform a retailer’s operations, especially with the right foundational technology already in place.

Data Data Data

AI is only as useful as the information it receives. The more accurate data fed into AI systems, the better its analytical capabilities can perform. In today’s retail environment, which is reliant on a range of technologies across the entire retail ecosystem, accurate data should not be hard to come by.

From Radio Frequency Identification (RFID) measuring inventory levels in the supply chain to Order Management Systems (OMS), Customer Relationship Management (CRM) and Point of Sale (POS) technologies tracking customer journeys, preferences and transactions, many retailers already have these solutions deployed within their operation.

With access to this data, an AI model can receive a significant amount of reliable information that can be utilized by retailers to create actionable outcomes that produce highly tailored experiences.

Creating a Personal Touch

Once the data challenge is overcome, retailers can feed as much information as necessary into an AI model that processes data and presents it back to retail associates in a digestible format.

The right model can create natural language summaries that cover a range of retail touchpoints, including current inventory levels, sales trends, and other important metrics. Importantly, these reports can be shared with staff to better inform them of evolving product trends and customer interests.

This provides shop floor staff with the ability to handle any customer enquiry, instantly. Better yet, with artificial intelligence capable of leveraging data to learn about previous trends and accurately forecast future ones, it can be used to make on-the-spot recommendations to customers based on their own personal preferences. While it might be a first-time interaction on the shop floor, the technology will make customers feel like the retailer has known them for years. They’ll feel valued, with their shopping needs met. This significantly enhances sales opportunities and encourages customer retention.

AI Will Arrive

2024 showed us that the world isn’t quite ready for AI to transform retail as we know it. However, it is ready to assist with small integrations that assist retailers in daily tasks – such as managing inventory or personalizing in-store experiences.

As we learn more about the technology, these integrations will be bigger, faster and even more accurate. But for now, AI is already bringing value to retailers as an add-on to existing technology stacks. 

To find out more about how Teamwork Commerce can help your retail brand integrate AI, get in touch today.