Microsoft is making strides to dominate the retail world with its new set of artificial intelligence (AI) offerings. The tech giant has unveiled several new AI tools under its Copilot umbrella to enhance both the behind-the-scenes operations and customer experience in retail. One of the new offerings is a personalized shopping template on Azure OpenAI Service that uses natural language processing. This template allows AI chatbots to engage in more human-like conversations with customers, providing personalized product recommendations based on individual needs and preferences. For example, if a customer mentions their upcoming camping trip, the chatbot can suggest camping gear suitable for the destination and time of year.
In addition to improving customer service, Microsoft is also focusing on internal communication, store operations, data analytics, and marketing. Microsoft Teams now includes AI-based suggestions for conversation starters, prompts, and images, which can be particularly helpful for store associates. The company has also introduced AI-powered tools that connect retail data to its Fabric analytics platform, providing valuable insights such as frequently bought together products. For marketers, updates in Copilot in Dynamics 365 Customer Insights promise to simplify campaign management and improve effectiveness.
Microsoft’s efforts to modernize the in-store experience demonstrate its commitment to becoming a leading AI provider in the retail industry. The company aims to showcase its AI capabilities at NRF 2024 in New York City. However, Microsoft is not the only company racing to dominate the retail AI market. Google Cloud also released a range of tools to enhance retail searches and customer service bots.
The competition in the retail AI space is driven by retailers’ urgency to adopt generative AI. According to Google Cloud data, 81 percent of decision-makers in the American retail sector are eager to leverage AI technology. The application of AI in retail is seen as a way to meet changing consumer expectations and provide a more enjoyable and personalized shopping experience.
While AI technology has advanced in recent years, it is still far from perfect. Companies like Microsoft are focusing not only on customer-facing features but also on internal improvements to ensure the accuracy and reliability of AI systems. By leveraging AI technology in retail, companies aim to drive revenue growth and improve overall brand experiences for consumers.