How we shop or indeed stock is changing and artificial intelligence (AI), particularly generative AI, is at the heart of that change. The retail sector has essentially been handed a brand new technology ready to go and is trying to figure out the best way to use it.
“Retailers in Ireland are embracing AI to personalise and streamline the customer journey,” says Neil Bowden, EMEA AI solutions executive at Dell Technologies Ireland. “We’re starting to see some very interesting uses of digital assistants both online and in-store, offering tailored recommendations in real time whether it’s in a grocery aisle or virtual stylist online.
“A common-use case is a wine adviser that can advise based on preference but also match meal types, all providing a great customer experience along with a revenue increase opportunity for the retailer. This and other similar use cases can be deployed both in the store and online.”
This opportunity is growing out of hyper-personalisation, which uses advanced AI and real-time data to deliver highly tailored products, services and experiences which are customised to each individual customer’s preferences and behaviour.
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“In online cases, it powers tailored product recommendations, dynamic content and individualised promotions based on browsing behaviour and preferences. In-store, tools like mobile apps, loyalty data and beacons can be utilised to suggest products and deliver personalised services and offers as the customer physically shops,” says Bronagh Riordan, AI and data partner at EY Ireland.
“Overall, this delivers a curated shopping experience that makes customers feel understood and valued, andensures a seamless and consistent shopping experience across all channels.”
With such potential to use AI to drive business, the variety of options available to retailers can be the biggest stumbling block.
“One of the biggest challenges is knowing where to begin. Many retailers adopt AI in isolated pockets, such as marketing, supply chain or customer service, without a unified strategy,” says Bowden. “This fragmented approach often leads to data silos, duplicated infrastructure and increased complexity. It also limits the ability to scale AI across the business.”
There’s also the matter of having the resources to invest, both in terms of skills and capital.
“Many retailers lack in-house AI talent and may struggle to justify initial investments without immediate returns. To overcome this, retailers are increasingly partnering to accelerate adoption while effectively managing costs,” says Riordan.
Retail is at a pivotal moment. Generative AI is not just a trend, it’s a catalyst for reinvention
— Neil Bowden, Dell Technologies Ireland
“Change management can also be a barrier. Retailers are tackling this by investing in their people, with training programmes and reskilling initiatives, and clearly communicating AI’s role as an enabler for the business.”
Getting in-house buy-in is critical to the success of any AI strategy but it’s particularly relevant in retail due to the impact it has on the customer experience.
“Adopting AI at scale is fundamentally reshaping how retailers connect with customers and making interactions more personalised, intuitive and efficient. By using technologies like computer vision and generative AI, retailers can better understand customer behaviour across both online and in-store,” says Bowden.
“For example, AI can analyse in-store movement patterns to reduce friction and optimise product placement, while online it powers recommendation engines that adapt in real time to customer preferences.”
Generative AI takes this further again, enabling conversational interfaces and virtual concierges that feel almost human in the manner in which they offer tailored support and product advice. These assistants can operate across platforms, helping customers navigate complex decisions. Crucially, while they are robots, the interactions are designed to be empathetic.
“Consumers will increasingly rely on personal AI agents to shop on their behalf. Searching, selecting and even transacting based on intent rather than attention. This shift will challenge retailers to rethink engagement strategies and build trust with both customers and their AI counterparts,” says Bowden.
The crucial aspect for retail businesses to keep in mind is that standing still won’t help them. The use of generative AI is here to stay and, if anything, will evolve.
“Retail is at a pivotal moment. Generative AI is not just a trend, it’s a catalyst for reinvention,” says Bowden.
Despite the daunting nature of the challenge, he is confident that Irish businesses will get to grips with the technology.
“With a strong appetite for innovation and a growing ecosystem of AI adoption, Ireland’s retail sector is well positioned not just to adapt but to help shape the next wave of AI-driven transformation in retail,” says Bowden.
