New research shows Amazon, Walmart, Stitch Fix leading the way in embracing AI across their organisations
Amazon, Walmart, and Stitch Fix have topped an index ranking the 100 leading retailers and brands that are embracing AI to drive impact across their organisations.
The 2024 Retail AI Index was developed by Lily AI, a technology platform specialising in AI solutions for retailers and brands, in partnership with analytics and strategy consultancy, Radii Group, and focuses on retailers in the apparel, footwear, beauty, and home segments.
“AI continues to empower retail leaders to reshape and modernise the customer experience, and it’s critical for all retailers to understand where they stand,” sats Purva Gupta, Co-founder and CEO, Lily AI.
“AI is becoming table stakes for retailers who want to stay competitive. Not surprisingly, the biggest of the bigs - Amazon and Walmart - have the resources to invest in AI extensively.”
“But, as we found, even relatively smaller companies, such as Poshmark and Revolve, are taking highly innovative approaches and reaping the benefits.”
The top ten retailers and brands in the AI index include:
Amazon
Walmart
Stitch Fix
eBay
Wayfair
Sam’s Club
Target
The Home Depot
Macy’s
Nike
Lily's investigation delved deeper than financial investments to uncover which retailers had thoroughly embedded AI throughout their operations.
The index revealed that numerous companies leverage a diverse array of AI technologies, including computer vision and generative AI, to enhance operational efficiency.
These retailers and brands are also harnessing AI to bolster decision-making, boost sales through improved customer experiences, and optimise marketing initiatives.
Key findings include:
While the index’s top performing retailers’ revenues exceed $10 billion, the variance in the ranking - from #1 Amazon to #46, BJ’s Wholesale Club, shows the differing public facing priorities of AI.
Both Amazon and Walmart (#2) lead in AI adoption and continue to leverage substantial financial resources to invest in advanced AI technologies and talent.
No clear correlation exists between a retailer’s index rank and overall revenue, suggesting retail is still in nascent stages of AI integration and it is too early to see the full financial impact.
Stitch Fix, a retailer with $1.6 billion in revenue in 2023, is ranked number three. Stitch Fix stands out because it leverages several AI-based technologies to deliver personalised shopping, building on its original business model of tailored/recommended clothing bundles.
It illustrates how mid-size companies can move toward significant AI adoption with focused investments that drive revenue and advance their mission while building on existing data and models.
Some companies with a higher AI adoption rankings have acquired or joined in strategic partnerships with AI firms, such as Wayfair’s (#5) acquisition of LLM startup ThirdAI and Ikea’s (#20) investment in Waaabi, a generative AI autonomous truck company.
Poshmark, another retailer with revenues of under $1 billion, came in at #18. It recently introduced an AI powered tool called Promoted Closet which uses machine learning to match shoppers’ search terms with promoted listings.
Not only does Promoted Closet contribute to a more enjoyable customer journey, but it also increases visibility and sales potential for sellers.
Another retailer with revenues around the billion dollar mark at $1.1 billion, Revolve, came in at number 19.
Through a partnership with AI Fashion Week, Revolve sold AI designed clothing on its website. It showcased three winning collections created using AI image generators such as Midjourney and Stable Diffusion.
2024 RTIH INNOVATION AWARDS
AI is a key focus area for the sixth edition of the RTIH Innovation Awards, which is now open for entries.
The awards, sponsored by CADS, 3D Cloud, and Retail Technology Show 2025, celebrate global tech innovation in a fast moving omnichannel world.
Key 2024 dates
Friday, 25th October: Award entry deadline
Tuesday, 29th October: 2024 shortlist revealed
30th October-6th November: Judging days
Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.
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