Conversational AI in retail: Enhance in-store shopping experiences 

Level-up retail shopping experiences, streamline operations, and drive sales growth with Infobip conversational AI tools.  

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A chat conversation on a smartphone screen. The message reads: 'Hey Olivia! Our new Spring collection is arriving in stores this Saturday! Take a look and reserve your favorite pieces.' Below is an image of models wearing the collection with a 'View products' link. The customer asks if the floral maxi dress comes in a petite fit, and the response confirms it does, with another 'View products' link.

Create memorable shopping experiences with Infobip conversational AI  

Infobip AI-powered chatbots, virtual assistants, and voice bots can transform in-store shopping experiences and keep your customers coming back for more than just a great product. Infobip’s intuitive platform makes building AI-powered experiences easy, with a drag-and drop interface and seamless integration with all your retail systems. Plus, with the help of AI and CX experts at your side, you can create unique and creative retail journeys that keep customers engaged and loyal.  

A person shopping for clothes in a retail store, with text overlays highlighting features of a Infobip's conversational AI solution for retailers: 'Intuitive platform,' '24/7 AI support,' 'AI & CX experts,' and 'Easy integration.'

Why retail needs conversational AI

Shoppers love the in-store experience, but retailers still need to find ways to digitally connect with customers to stay top of mind and relevant. Here’s the top four ways conversational AI can elevate the shopping experience:  

24/7 support availability

AI helps brands provide round the clock support so customers can always have access to customer service regardless of time or location,.

Automate routine tasks

Free up customer support agents and hand off simple and repetitive tasks to AI agents that can guide customers through query resolution. 

Save time and money

Conversation AI can reduce the need of costly customer service processes and operations and speed up resolution times.

Data driven decisions

AI can help retailers organize and analyze data to help make informed decisions and provide accurate targeting for marketing campaigns.

Enhancing the shopping experience with conversational AI  

Conversational retail

Personalized assistance

Add personalization to the shopping experiences to give customers a more tailored experience with AI and improve engagement while driving sales through:  

  • Tailored recommendations  
  • Special in-store discounts  
  • New product launches 
Conversational retail

Omnichannel support 

Omnichannel capabilities offers seamless AI interactions between channels that your customers love to use. Get connected on channels like:  

  • WhatsApp 
  • Voice 
  • RCS
Conversational retail

Voice-enabled shopping 

Using an AI voice assistant for retail shopping can allow for innovative and convenient shopping experiences. Some ways to use voice assistants for retail include:  

  • In-store accessibility 
  • Multi-language support 
  • In-store navigation 

Conversational AI use cases for retail

Learn how you can apply AI to enhance use cases, add personalization, and carry customers through their shopping journeys including support and sales. 

Offer support in and out of your stores

  • FAQs: Answer any questions quickly and conversationally with the help of AI.
  • Store hours and locations: Allow customers to find store locations, hours, and any other information they might need with an AI assistant. 
  • Find a product: Help customers locate which stores carry their favorite products or best-sellers that regularly sell out. 
  • Return policies: Allow customers to get information on return policies and processes to avoid any pain points.
A smartphone screen displaying a chat conversation with a retail chatbot. The customer asks for an olive-green smart watch, and the chatbot lists available stores: 89 Trafalgar Rd. Oakville, 678 Dundas St. Milton, and 898 Main St. Mississauga. The customer requests a reservation at the Oakville location, and the chatbot confirms the reservation for 24 hours.

Overcoming challenges with AI adoption in retail 

Conversational AI is transforming retail, but its adoption comes with challenges, including data privacy concerns, integration complexities, and user adoption resistance. Here’s how retailers can navigate these obstacles and how Infobip’s AI-driven solutions support a smooth transition. 

Data privacy and security concerns 

Challenge:

Customers and regulators demand strong data privacy protections, especially with AI-driven insights and personalization. 

Solution: 

  • Adopt strict data governance frameworks to ensure compliance with regulations (e.g., GDPR, CCPA). 
  • Use anonymization and encryption to protect sensitive customer data. 
  • Ensure transparency in AI-driven decisions to build trust with customers. 

Infobip’s AI solutions follow stringent data governance and security protocols, ensuring retailers handle customer data responsibly. With built-in compliance measures, encryption, and AI transparency, Infobip helps retailers protect customer trust while leveraging AI. 

Overcoming integration complexities 

Challenge:

AI tools must work seamlessly with existing POS systems, CRM platforms, and in-store technologies, which can be a complex process.

Solution: 

  • Opt for AI platforms with flexible APIs that integrate easily with existing retail tech stacks. 
  • Use cloud-based AI solutions for scalable and cost-effective implementation. 
  • Start with modular AI deployments (e.g., chatbots, smart recommendations) and expand as needed. 

Infobip’s AI-powered solutions offer easy API integration, ensuring smooth integration with retail CRMs, POS systems, and messaging platforms like WhatsApp and SMS. With minimal disruption, retailers can integrate AI-powered chatbots into their existing systems. 

Encouraging employee and user adoption  

Challenge:

Employees and customers may resist AI adoption due to fear of complexity, data security concerns, or job displacement. Eliminate any doubts with these tips:

Solution: 

  • Educate staff to work alongside AI, emphasizing that AI enhances rather than replaces human roles. 
  • Demonstrate quick wins with AI, such as reducing checkout times or improving customer service
  • Make AI interactions seamless for customers by ensuring user-friendly interfaces and natural-language processing. 

Infobip provides ongoing AI optimization and training support, ensuring retail teams understand AI capabilities and how to leverage them effectively. By offering seamless, human-like AI interactions, Infobip helps retailers deliver AI-powered experiences without friction. 

How to select the right AI platform for retail: A checklist 

Choosing the right AI platform for conversational experiences is crucial for enhancing customer engagement, streamlining operations, and driving sales. Use this checklist to ensure you select a platform that meets your retail needs: 

Best practices for AI implementation 

Goal setting

Define objectives and understand needs 

Before implementing AI, retailers should clearly define their business objectives and align them with customer expectations. Whether the goal is to enhance in-store assistance, streamline checkout, or improve customer service, understanding shopper behavior and pain points is crucial. Conducting surveys, analyzing past interactions, and identifying common customer queries can help tailor AI solutions that provide real value and drive engagement. 

Training & integration

Seamless implementation and optimization 

For AI to deliver its full potential, it must integrate effortlessly with existing retail systems, including POS, CRM, and inventory management. Choosing an AI platform with an API-first approach ensures minimal disruptions and smooth connectivity. Additionally, continuous training and optimization—both for AI models and in-store staff—are key to refining AI responses, improving accuracy, and maximizing efficiency in real-time customer interactions. 

Data privacy

Prioritize security and compliance 

Retailers must place data privacy and security at the forefront of AI implementation to build customer trust and comply with regulations like GDPR and CCPA. This includes securing customer data, ensuring transparent AI decision-making, and regularly auditing security measures. By adopting privacy-first AI practices, retailers can offer personalized experiences while safeguarding sensitive information, reinforcing confidence in AI-driven interactions. 

The future of AI in retail 

How might the evolution of AI effect retail shopping journeys? There are 3 trends that can have the biggest impact on conversational AI experiences in retail:  

Predictive analytics for smarter retail interactions 

AI-powered predictive analytics is transforming how retailers forecast demand and personalize promotions. By analyzing historical data and real-time trends, AI can predict which products will be in demand, which allows them to notify loyal customers when their favorite products are back in stock or about to sell out. Retailers can also use predictive models to offer personalized discounts, ensuring customers receive relevant offers at the right time. 

Multimodal AI for seamless customer interactions 

The future of retail AI goes beyond text-based chatbots—multimodal AI enables customers to interact using voice and images for a more immersive experience. AI-powered voice assistants, and visual search tools will make in-store shopping more intuitive, allowing customers to ask for product recommendations, check inventory, or receive personalized styling advice in a natural, conversational way. 

Ethical AI and responsible data use 

As AI adoption grows, so does the focus on ethical AI practices, ensuring transparency, fairness, and security in customer interactions. Retailers must prioritize AI models that eliminate bias, safeguard customer data, and comply with regulations like GDPR and CCPA. Transparency in AI-driven recommendations and decision-making will be key to maintaining customer trust. 

How Infobip can help transform retail experiences with AI 

Retailers looking to stay competitive in this evolving landscape can leverage Infobip’s expertise in AI-driven customer engagement. Infobip’s solutions offer: 

  • Predictive customer insights for personalized recommendations 
  • Omnichannel AI-powered interactions via chat, voice, and messaging apps
  • Secure and compliant AI that prioritizes data privacy and ethical practices

By integrating Infobip’s AI-powered conversational solutions, retailers can future-proof their business, delivering innovative and seamless shopping experiences that keep customers engaged. 

Learn how to create exceptional conversational experiences for retail

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