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How Gen AI is Revolutionizing The Retail Industry?
Glance
Glance2025-03-12

Have you ever stopped to wonder why your online shopping experience seems so perfectly tailored to your taste? Or how do the recommendations you see on your favorite retail websites appear to anticipate your needs almost before you even know them? In today’s fast-paced digital world, the answer lies in generative artificial intelligence (gen AI)—an innovation that’s not only reshaping how retail operates but also transforming the way you shop every day.

In this blog, we’ll explore how generative AI enhances existing AI systems in retail, how it’s used throughout the retail lifecycle, and the significant benefits it brings to both consumers like you and the businesses you love. But first, let's start with what Generative AI is. 

What Is Generative AI?

At its simplest, generative AI refers to a type of artificial intelligence that uses algorithms to analyze large datasets and generate new content that resembles the data it has learned from. Unlike traditional AI models that operate within a fixed set of rules or pre-programmed responses, generative AI innovates by producing new text, images, or even designs based on the patterns and information it has absorbed.

For example, while older AI systems might simply recommend products based on past purchases, gen AI in retail can actually create personalized content—from crafting unique product descriptions to designing visual elements that align with your personal style.  How? Let’s discuss this. 

How Does Generative AI Enhance Existing AI Systems in Retail?

By 2029, generative AI in the retail market is expected to reach $4.2 billion at a CAGR of 39.6%.  (source

In Generative AI, Models such as GPT-4 and other transformer-based systems are at the forefront of this technology, harnessing vast amounts of data (often from sources as expansive as the internet) to understand context and generate relevant, creative outputs.

When we compare traditional AI with gen AI in retail, the difference is clear. Traditional AI systems have long been used for tasks such as customer segmentation, demand forecasting, and basic product recommendations. They work by analyzing historical data and applying pre-defined rules to predict outcomes. For example, a typical AI system might determine that customers who buy running shoes are also likely to purchase athletic socks.

Generative AI, on the other hand, takes that a step further by not only processing data but also creating new outputs from scratch. This means that instead of merely predicting what products you might like based on past behavior, generative AI can design new, customized product suggestions and even tailor marketing messages specifically for you.

It can even generate detailed product summaries, propose style combinations, and simulate how a product would look in your home using augmented reality. 

This transformation is achieved through advanced techniques like Generative Adversarial Networks (GANs) and transformer models, which work together to refine and improve their outputs continuously based on feedback.

By integrating with existing systems, generative AI acts as a force multiplier. It enriches the data-driven insights provided by traditional AI and presents them in more engaging and actionable formats. 

Benefits of Gen AI in Retail for You (The Consumer)

So, how does generative AI enhance your shopping experience, and why should you be excited about it?

Tailored Recommendations:

Every time you log onto your favorite online store, the products suggested are not random—they’re specifically chosen based on your behavior and preferences. This means less time searching and more time enjoying products that truly fit your style and needs.

Interactive Virtual Try-Ons: 

With Gen AI, you can see how clothes, makeup, or even home decor items look on you or in your space before making a purchase. This minimizes the guesswork and helps you make more confident decisions.

Personalized Offers and Deals: 

Gen AI can analyze your shopping history to deliver exclusive promotions tailored just for you. Whether it’s a special discount on your favorite brand or a flash sale on items you frequently purchase, these personalized deals can save you money and enhance your overall experience.

Effortless Customer Service: 

When you have a question or need assistance, AI-powered chatbots offer immediate, personalized support. No more waiting on hold or navigating complicated phone trees—the help you need is just a few clicks away.

Enhanced Visual Experience: 

With features like visual search and augmented reality, you can quickly find products that match your taste simply by uploading an image or using voice commands. This innovative approach makes shopping more engaging and fun.

Benefits of Generative AI for Retail Businesses

Of course, Gen AI in retail is not only just about making your shopping experience better—retailers also benefit greatly from adopting generative AI. As per statistics, the total financial impact of AI on retail businesses is forecasted to be $9.2 trillion by 2029, with generative AI expected to represent about 78% of this impact, reaching $4.4 trillion. (source

To understand it better, take the example of Amarra, a global distributor of special-occasion gowns. It integrated AI to write product descriptions, reducing content creation time by 60%, and implemented an AI-powered inventory management system that decreased overstocking by 40%. Similarly, McDonald's is upgrading its restaurants with AI-powered drive-throughs and tools for managers to improve both customer and staff experiences. 

Here is how businesses leverage Gen AI: 

Cost Efficiency and Operational Excellence: 

Automating tasks such as content creation, inventory management, and customer support leads to significant cost savings. This efficiency allows businesses to focus on strategic growth and innovation.

Enhanced Customer Insights: 

With AI analyzing vast amounts of data, retailers gain a deeper understanding of customer behavior and preferences. These insights drive better marketing strategies, improved product offerings, and ultimately, increased sales.

Increased Sales and Profitability: 

By leveraging AI for dynamic pricing, personalized recommendations, and optimized marketing campaigns, retailers can boost conversion rates and improve profit margins. For instance, studies indicate that personalized marketing can increase sales by up to 15%.

Faster Product Innovation: 

Gen AI accelerates the product development cycle by rapidly generating new design ideas and content. This speed-to-market can be a game-changer, especially in fast-paced industries like fashion and electronics.

Better Supply Chain Management:

Optimizing inventory and procurement processes with AI leads to reduced waste, lower operational costs, and improved product availability—all of which translate into a smoother shopping experience for customers.

Improved Brand Loyalty: 

Offering highly personalized, consistent, and engaging experiences fosters stronger customer relationships, reducing churn and building long-term loyalty.

Experience the Power of Gen AI in Retail with Glance 

At Glance, we’re redefining how you shop, making it more intuitive, exciting, and tailored just for you. No more endless scrolling or guessing what might look good—our Glance AI-powered retail experience brings the store to you, right where you are.

With Shop on Glance, you get personalized recommendations based on your style, preferences, and the latest trends right on your lock screen. Whether it’s fashion, beauty, footwear, or accessories, our AI understands what you love and curates options that feel like they were picked just for you.

And here’s where it gets even better—our upcoming Glance AI app lets you try on clothes virtually before making a purchase. Imagine seeing how that perfect dress —all without stepping into a store!

If you love experiencing all these virtual shopping innovations on a big screen, Glance TV brings it all to life. You can explore styles, try virtual looks, and shop effortlessly—with Glance on TV. 

Wrap up 

Generative AI is not just an upgrade—it’s a revolution that’s redefining the retail industry from the ground up. It’s enhancing the way you shop by delivering highly personalized experiences, making operations more efficient, and fostering innovation at every stage of the retail lifecycle.

Whether you’re a savvy shopper enjoying a custom-tailored experience or a retailer planning your next strategic move, embracing generative AI is the key to unlocking a new era of retail innovation. It’s time to transform the shopping experience into one that’s smarter, faster, and more personalized than ever before.