3 ways retailers implemented AI in 2023

AI was undoubtedly one of 2023’s biggest buzzwords, with scores of brands lining up to tout the different ways they were exploring the technology. But using AI in some fashion or other has long been part of retailers’ strategy, typically with behind-the-scenes back-office work around supply chain and merchandise stocking. Some brands are beginning to implement generative AI, but the work retailers are doing is not always consumer-facing. This might be for the best, considering the instances in which ChatGPT has invited backlash this year. Consumers can typically sniff out a chatbot acting as a real person. Recent news: How AI-generated customers can help brands learn See our Year in Review stories here Three retailers recently talked to Ad Age about how they used AI in 2023. Victoria’s Secret The lingerie chain began using AI within its email operations with a pilot early in the year, according to Sarah Sylvester, executive VP of marketing. The strategy helps to personalize such content so customers get tailored messages specific to their needs, which has made the channel more efficient, she said. To that end, Victoria’s Secret sent out fewer emails because those that were sent were more productive—and it eventually expanded the program. “This is more like the silent machine behind our email powering us,” said Sylvester. “So the customer may not even realize it, which is maybe the less sexy side of AI. But when you see the results, this is actually super exciting.” Signet Jewelers The company, which owns well-known brands such as Kay, Zales and Jared, recently began using AI for content generation and targeting marketing messaging to customers. Signet partners with Google and Meta for such tailored messaging, the company said. The jewelry giant also uses AI for its product pages—generic copy is written by AI rather than by human employees, who work as editors. Ulta Beauty AI can be a valuable tool in a beauty brand’s arsenal, something Ulta has recently discovered. Rather than use generative AI for new marketing campaigns, the cosmetics chain is using it for consumer engagement and as a way to test innovation. For example, Ulta uses AI to drive its virtual try-ons and product testing for customers; 11.5 million have engaged with this offering, according to Michelle Crossan-Matos, chief marketing officer. Despite industry fatigue, Crossan-Matos said generative AI can be helpful in her industry because of its creative possibilities. “Everyone’s like ‘Oh, I’m so AI-ed out,’ but the reality is, AI is really important in beauty care,” she said, speaking at Ad Age’s Media Summit in October. See our Year in Review stories here

3 ways retailers implemented AI in 2023

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