AI is Revolutionizing the Holiday Shopping Experience

Criteo anticipates that AI will play a pivotal role during Cyber Week and throughout the holiday shopping period.

“Criteo has been advancing AI technology for nearly two decades,” stated Romain Lerallut, Vice President and leader of Criteo’s AI Lab. “We originally referred to it as machine learning. One aspect that has truly astounded me recently is the rapid progress — it’s akin to a hockey stick effect — thus, what I state today could very well be outdated by tomorrow. Buyer beware.”

The holiday season’s AI advantages. Lerallut identifies two significant trends. “First, it’s business as usual — AI will enhance performance and personalization — but it will be even more efficient.” The implementation of generative AI during the customer journey allows for creating recommendations or suggesting add-on items to a shopping list without utilizing an external LLM like ChatGPT (for instance, AI might recommend an exceptional Burgundy to pair with a boeuf Bourguignon).

“The second trend involves utilizing generative AI for content creation,” he explained. This includes copywriting, crafting product page descriptions, and generating images — these functions are becoming essential. “We’re currently exploring transforming standard product images, typically set against a plain background, into more visually appealing formats. What kind of imagery will resonate with a particular demographic?”

Take a closer look: Salesforce – AI is projected to boost online Cyber Week sales by $61 billion

Understanding the unique nature of the holidays. Product recommendations, whether algorithmically driven or powered by AI, have been commonplace for years. These predictions generally rely on the premise that future behaviors will mirror past ones. However, the holiday shopping surge can disrupt this trend.

“Shoppers may seek different items,” Lerallut noted, “perhaps they’re purchasing for others rather than themselves. The latest AI technologies can adapt to these shifts, recognizing the seasonal context: ‘Instead of that usual item, let’s promote the premium alternative.’ These models possess contextual awareness and grasp current trends.” Traditional recommendations typically depend solely on recent purchase data.

Can mid-sized retailers leverage these advancements? Certain elements of AI have started to become more accessible, according to Lerallut. “The foundational capabilities are easier to obtain. Even a one-person business can significantly enhance its content generation.”

However, accessing the more advanced, personalized AI functionalities will be more challenging and will require comprehensive customer data. “Such resources are unlikely to be readily available off-the-shelf,” he explained. “This is where Criteo has an advantage, as we empower both large and small clients to access those essential capabilities.”

Criteo’s vast interactions with billions of global users provide them with an extensive pool of consumer data. “We can offer our clients insights they might not achieve independently.” (Lerallut stressed that this operation is conducted in a compliant manner.)

Engaging consumers. Much of the AI functionality will work behind the scenes, often unnoticed by customers (Lerallut points out that European regulations mandate the labeling of AI activities). “An effective AI should operate seamlessly and naturally,” he said. “It should be perceived as beneficial and helpful.” He believes it’s crucial to maintain transparency in product recommendations to prioritize the retailers’ interests. “When we excel in our function, product recommendations become invaluable guidance for users and a service for our clients.”

This approach centers on effective matchmaking, according to Lerallut. When executed properly, it’s not intrusive.

Why is this significant? It goes beyond mere hype. That’s the crux of the matter. Will this ambitious AI implementation aimed at enhancing the shopping experience and encouraging upsells resonate with consumers? Leading companies are banking on it. We will find out soon.