Microsoft Brings Artificial Intelligence to Retailers

Microsoft has announced new capabilities for generative artificial intelligence, along with a new set of data solutions supported by the Azure Cloud platform, designed to help retailers transform the shopping experience.

These solutions provide personalized recommendations, targeted advertisements, and virtual experiences. The generative artificial intelligence is considered a key advantage of Microsoft’s new solutions.

Retailers can utilize generative artificial intelligence to create personalized visual ads for shoppers based on their browsing history.

The new advantages include the Copilot template that allows retailers to create personalized shopping experiences that can be later integrated into an application or website, enabling shoppers to make natural language queries.

The company claims that the templates, operated by the powerful linguistic model GPT-4 through Azure OpenAI service, can assist online shoppers in the same way that store attendants help buyers in a physical store.

Microsoft stated in a statement that this template can also display supplementary items to increase basket size and enhance customer satisfaction.

Another new Copilot template can support store operations by assisting employees working in physical outlets in extracting insights from their work.

Store administrators can utilize the template to create a generative artificial intelligence assistant for obtaining answers to questions regarding store procedures, product listings, human resources policies, and benefits.

The assistant can also be used to access customer information, which may help improve in-store shopping experiences.

The applications that use the Copilot template provide store managers with visibility into common questions from employees and customers, enabling them to gain insights that help them make meaningful decisions, such as updating training, procedures, or guidelines.

According to the company, there are several benefits such as increased sales, improved customer satisfaction, and reduced costs.

These benefits are achieved through personalized recommendations, targeted advertisements, and task automation, such as product recommendations and customer service.

Automation can reduce costs for retailers, resulting in the saving of resources that can be utilized elsewhere in the business.

It is clear that Microsoft’s new solutions are designed to make the shopping experience personalized and appealing for customers, which could lead to increased sales and customer satisfaction for retailers if used correctly.

It is still premature to determine the impact of Microsoft’s new solutions on the retail industry.