Google is set to give the big sell for AI at one of the US’s biggest gatherings for the retail business, and says that there is a “sense of urgency” for companies to get on board.
The tech giant has released a statement before the event giving details of incoming AI updates. The big claim is that these will help solve some of the retail world’s main issues: Evolving customer expectations, rising costs and supply chain complexities.
Google has been open in shouting about its technology ambitions – even signing a deal to get nuclear power to fire up all the data centers it will need to hit its AI targets – but this event will see it go on the charm offensive with a specific industry where it believes AI uptake could – and should – be faster.
What Are the AI Updates?
The biggest launch is Google Agentspace for retailers. This is what the company calls its “one-stop shop” where retailers can create AI agents, access Gemini, get enterprise data and use Google’s search abilities.
The company says that, for example, it cuts the time that it would take an employee to look through a catalog while a customer is waiting for details of a specific product.
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There has also been a commerce specific update to the Vertex AI Search function. This can be embedded into company’s digital storefronts. The company adds that Bed, Bath & Beyond has already deployed Google’s new Conversational Commerce tool, which is part of the Vertex AI search function. This, it says, engages with customers in “a more natural and human-like conversation” and has booked revenue per visitor by 5% for the body care brand.
Google notes that that it has released a new Gen AI Catalog and Content Enrichment solution, which will deliver better product data. AI, specifically Gemini 1.5 Pro, Gemini 1.5 Flash and Imagen 3, can be deployed to automate filling in fields including attributes, description, copy, and image. “Poor product data leads to unhappy customers, bad search results, and fewer sales,” Google warns retailers.
What Will They Mean for Customers?
In a statement talking about the launches, Carrie Tharp, Vice President of Global Solutions & Industries at Google Cloud, said that AI will means retailers can “operate more efficiently and create more personalized shopping experiences.” Virtual assistants will be able to offer personalized buying advice and answer questions in real-time.
In fact, customers now expect this level of service and companies might quickly lose them if they don’t deliver. A study by the Capgemini Research Institute, conducted in late 2024, revealed that 71% of shoppers want AI integration in their purchasing experiences. The survey took in 12,000 consumers aged 18 plus across 12 countries in North America, Europe, and Asia-Pacific.
Tharp gave a real world example of AI boosting customer engagement. She adds that global eCommerce site, Wayfair, is using Gemini on Vertex AI to speed up its product launches five-fold, as the product tagging and categorization is now automated. For customers, this means a faster turnover of products available but also that the descriptions should be more accurate to help them choose what they want.
Is the Retail World Ready?
From reducing waste to enhancing CX, Google believes that AI will have a massive impact on retail – but is the retail world ready? An IBM survey published last week suggests that executives in this space are already “dramatically shifting their focus toward AI.”
The report revealed that 81% of surveyed executives and 96% of their team are already using AI “to a moderate or significant extent.” Interestingly, the executives also indicated that they want to expand AI usage “to more sophisticated use cases.” These include integrated business planning, where usage will increase by 82% this year.
As Google suggests, customer service is one of the areas in which AI seems likely to make the biggest impact. Compared to last year’s IBM’s survey, this year’s results suggest that AI use in customer service, “particularly for personalized responses and follow-ups,” could grow by 236% in the next 12 months.
Dee Waddell, Global Industry Leader, Consumer, Travel & Transportation Industries at IBM said that the AI is “no longer just a tool; it’s a strategic imperative.” She also echoed Tharp’s statement that the retail world is at a tipping point. For those companies who get onboard now “embedding AI across their operations can help define not just productivity gains, but the future of brand relevance, engagement and trust.”
Implementation won’t be without challenges – historic data management among them – but Google suggests that those retailers who don’t engage meaningfully with AI now could be left behind and even face an uncertain future.
