AI Customer Service in Retail and Why You Need It

AI Customer Service

Artificial intelligence (AI) customer service is revolutionizing the retail industry. More and more retailers are adopting this technology to improve their customer service operations, accelerate business processes, and drive progress. AI chatbots offer a number of benefits that can help retailers improve their customer service operations, boost sales, and accelerate business growth.

Below we are going to talk more in detail about what AI in customer service is, how retailers can benefit from it and common use cases for AI chatbots in the retail and e-commerce industries.

Table of contest:

What is AI in customer service?

AI customer service refers to the use of artificial intelligence (AI) to automate and augment customer service tasks. AI chatbots are one of the most common examples of AI in customer service.

AI chatbots are computer programs that can simulate conversation with humans. They can be trained to answer questions, provide support, and resolve issues. AI chatbots are often used on websites, social media, mobile apps, and messaging platforms.

Benefits of AI chatbot in Customer Service for Retailers

Implementing AI chatbot in customer service within the retail industry offers several benefits that can help both retailers and customers. Here are some of the key advantages:

  • 24/7 Availability: AI-powered chatbots and virtual assistants can provide customer support around the clock, ensuring that customers can get assistance at any time, even outside of regular business hours.

  • Efficiency: AI can handle routine and repetitive tasks, such as answering frequently asked questions, processing orders, and tracking shipments, allowing human agents to focus on more complex and high-value tasks.

  • Personalization: AI algorithms can analyze customer data and behaviors to provide personalized product recommendations, promotions, and shopping experiences, increasing the likelihood of conversions and customer satisfaction.

  • Quick Responses: Chatbots and AI-driven email responses provide instant answers to customer queries, reducing wait times and improving response times, which are critical in retail where quick decision-making is often required.

  • Scalability: AI systems can scale to handle a high volume of customer inquiries simultaneously, ensuring that no customer is left waiting for assistance during peak shopping seasons or promotions.

  • Consistency: AI ensures consistent messaging and information across all customer interactions, reducing the risk of human errors or variations in responses.

  • Cost Savings: By automating routine tasks and providing efficient self-service options, AI can help retailers reduce operational costs associated with customer support.

  • Improved Customer Satisfaction: Quick, accurate, and personalized responses contribute to higher customer satisfaction levels, leading to repeat business and positive word-of-mouth referrals.

  • Multilingual Support: AI-driven translation services enable retailers to offer customer support in multiple languages, expanding their reach to international markets.

  • Fraud Prevention: AI algorithms can detect and prevent fraudulent activities, such as payment fraud or identity theft, which is crucial for maintaining customer trust and security.

AI Customer Service

How to Use AI chatbot in Customer Service

AI chatbots are changing the way retailers interact with their customers.
Here are a few examples how:

  • Website Chatbots: Implementing chatbots on your retail website helps to assist customers with product inquiries, helps them navigate your online store, and offers personalized product recommendations based on their preferences and browsing history.

  • Mobile Apps: Incorporating AI-driven chatbots or virtual assistants within your retail mobile app will provide users with shopping assistance, answer questions about products, assist with order tracking, and facilitate easy checkouts.

  • Social Media: Use AI-powered tools to monitor and respond to customer inquiries, comments, and messages on social media platforms like Facebook, Instagram, and Twitter. You can also employ chatbots to facilitate transactions through social media.

  • Email: Creates automated responses to common customer inquiries and order-related emails using AI-powered email bots. Additionally, retailers can use AI to analyze customer emails for valuable insights into customer preferences and issues.

  • Voice Assistants: Enables voice-activated virtual assistants to assist customers with shopping inquiries and order placement via devices like Amazon Echo or Google Home.

  • Messaging Apps: Use AI-powered chatbots and virtual assistants on messaging platforms like Facebook Messenger, WhatsApp, or SMS to provide customer support. Customers can reach out and receive assistance directly through these apps.

Examples of AI in Customer Service

Take a look at some real-world examples of AI customer chatbots in the retail industry:

  • Sephora Virtual Artist: Sephora’s Virtual Artist chatbot allows customers to try on different makeup products virtually. Users can chat with the bot, upload a selfie, and then experiment with various makeup looks using augmented reality (AR) technology. This chatbot helps customers make informed purchasing decisions by visualizing products before buying them.

  • H&M Chatbot: H&M’s chatbot assists customers with product recommendations and answers frequently asked questions. Users can inquire about clothing items, check for nearby store locations, and receive style tips. The chatbot provides a personalized shopping experience by considering user preferences and browsing history.

  • eBay ShopBot: eBay’s ShopBot helps users discover products on the platform. Shoppers can describe what they’re looking for in natural language, and the bot suggests relevant listings. It also provides price comparisons and recommendations.

  • ASOS Virtual Assistant: ASOS, an online fashion retailer, uses a virtual assistant chatbot to help customers find clothing and accessories. The chatbot offers style advice, helps with sizing queries, and assists with tracking orders.


AI customer chatbots offer a number of benefits to retailers, including 24/7 support, increased efficiency, personalized customer experiences, and improved customer satisfaction. 

If you are considering implementing AI customer service chatbots in your retail business, Pexly offers a variety of AI-powered customer service solutions that can help you improve customer satisfaction and reduce costs. Learn more about our AI chatbots and how we can help you improve your customer service.

AI Customer Service

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