AI in Retail review: how retailers are driving conversion with 'hyper-personalisation'

“People want apps that are tailored to them,” Daniel Bos, Senior Director of Data, Analytics, and AI at delivery platform Just Eat, told delegates at AI in Retail in London this week. 

However, he also noted that consumer expectations around personalisation have shifted in recent years. “It’s not just one piece - to really optimise it needs to be across everything,” he added, noting that Just Eat’s customers may have very different preferences depending on which day of the week they are placing an order. 

Thanks to AI, he believes that it is now possible to create better recommendations for consumers. “Everyone has so much data about their customers [...] the opportunity we have now is using these micro moments to influence their behavior.”

Keyur Govande, Chief Technology Officer at Depop, agreed that consumer expectations have changed for the fashion reselling plaform. However, he noted some of this is due to improved personalisation with an increased number of Depop users choosing to browse the app’s suggestions rather than searching for themselves. 

“We better understand their expectations and can suggest more relevant items,” Govande said. “This is driving further engagement with our platform.”

For British fashion retailer New Look, improved personalisation is a way for it to differentiate itself from rivals. Daniel Chasle, Chief Data Officer at New Look, told delegates its main competitors are now Shein and resale platforms such as Depop and Vinted. 

“Personalisation is a place where we can differentiate ourselves,” he said. However, he noted there are still some challenges with getting this right. “You can sense relevance from a customer’s past purchases, but to be truly personalised it needs to be what they need now, in this exact moment.”

Solving fashion’s sizing issue

Another space for more innovation in personalisation in sizing, which has long been a concern for fashion retailers. Chasle shared that New Look is now tracking not only which items see a high volume of returns, but also the specific sizes which seem to be a concern.

“In the summer, we had an issue with sizing on our swimsuits,” he explained, adding that its core sizes were not an issue, only ones that fell outside of this. The retailer was able to adjust its recommendations based on this insight. 

Sizing is also a concern for Depop, which sees individual users tasked with uploaded individual items, in an often time consuming process. “Our inventory is so dynamic,” Govande explained. “So being able to solve fit and sizing issues would be huge.” He shared that Depop was closely watching startups offering more seamless uploads and automatic updates on sizing information. “We’re very excited about the possibilities here,” he added.

Thanks to the popularity of LLMs, such as ChatGPT, Govande said it was likely consumers would be using standard search engines less. “That’s where e-commerce needs to focus,” he added, although he noted that many consumers are still looking for a more serendipitous experience when looking for clothing. 

While New Look’s Chasle was excited about the concept of conversational shopping within retailer websites, he was also concerned about an overfocus on this. “The danger of outsourcing to ChatGPT is that we risk losing touch with our customers,” he said.

RTIH AI in Retail Awards

RTIH proudly presents the first edition of its AI in Retail Awards, sponsored by 3D Cloud and EdTech Innovation Hub.

This is now open for entries. Deadline for submissions is Friday, 5th December. It’s free to enter and you can do so across multiple categories.

Check out categories and entry forms here.

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Thursday, 29th January. This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.