AI in retail: searching goods by images, chatbots, and personal recommendations AI in retail: searching goods by images, chatbots, and personal recommendations

Today both big corporations and small companies deal with retail sales. Their main goal is to attract as many buyers as possible to receive a higher income in the result. In 2019, artificial intelligence technologies help to handle this task. AI systems optimize sales and make purchases quicker and more efficient. Read in the article how AI is used in retail and what benefits it brings to vendors and buyers.

Search by images

AI systems help users to find necessary goods by images. AI recognizes the image and offers the customer identical or similar goods. As a result, the user can compare the price of the product in different stores in several clicks.

Today, users can search for goods using this method on AliExpress, Clouty, and many other online stores.

Besides, AI simplifies the process of posting ads on sites. The AI system recognizes the product that the user uploads in the app or website. Then the system places it to the corresponding category. Thanks to this vendor spends less time on ad placement, and buyer quicker finds necessary products.

The technology is already used by Pinterest, Ebay, Amazon, Facebook, and Google.


Gartner firm forecasts that over 85% of communication with customers will take place without human interference by 2020. Virtual assistants will take on this function.

Today different companies implement chatbots that answer customer queries, take orders, give recommendations, make surveys, send newsletters, give out promo codes, and fulfil other functions 24/7.

For example, the virtual assistant of Sephora perfumery and cosmetics chain starts the chat with customers from a survey. Then it recommends potential buyers different products. The list of offered goods depends on answers given by the person at the beginning of the chat.


AI helps retailers to correct prices automatically. The AI system can analyze user actions and behavior on the website, data about prices of competitors, demand for goods, data about upcoming holidays, weather, etc. Basing on this information, it can set up individual prices for different products.

For example, before the New Year’s Eve, algorithm can increase the price of decorations that are in-demand. When holidays end, AI automatically decreases prices for New Year’s attributes.

Besides, AI can define prices for every specific store depending on the location.

Today Walmart, eBay, and Amazon use AI systems for pricing purposes.

Recommendations at online stores

Online retailers offer a wide variety of goods. Sometimes customers find it difficult to choose what they need first of all. AI can solve this problem.

AI system can analyze user queries and purchase history. Basing on obtained information, it drafts a list of recommended products.

For example, Amazon uses DSSTNE platform that studies purchase data and analyzes data about browsed pages. Using this information, it gives personal recommendations to every customer.

North Face clothes store uses IBM Watson. If a person is looking for a jacket on the website, the system asks about location, gender, and air temperature, and uses this data to select goods that may fit the customer.

AI Conference Kyiv: AI in retail: searching goods by images, chatbots, and personal recommendations 1

Ukrainian experience

According to the co-founder and CEO of PicsArt Hovhannes Avoyan, today Ukraine is ranked third among countries beyond the Silicon Valley that stand out for the best artificial intelligence schools. According to data of Clutch ratings firm, 28 companies supply AI solutions in Ukraine, whereas in the rest of the world their number reaches 226.

Today finance, healthcare, agriculture sectors are adopting AI technologies in Ukraine. Besides, there are AI use cases in retail.

For example, Lamoda retailer supplement its mobile app with the technology that allows searching for clothes by photo. Thesystemanalyzesthingsshownontheimage. Afterwards, it offers the user similar clothes available in the catalogue.

PODUSHKA.UA online store that supplies household chemicals and bed cloths, uses a chatbot to communicate with customers. The virtual assistant calculates when the buyer runs out of laundry detergent. At that time, it reminds the customer that he will run out of the powder soon. Besides, it can offer a discount.

The chatbot of METRO store chain functions within Viber messenger. It helps users to receive METRO’s customer card, connect to the operator, etc.


Today thanks to strong competition, retailers have to fight for every customer. Therefore, the retail sector is getting more customer-oriented. Big corporations and small companies are implementing AI technologies that optimize the purchase process and make customers return again and again. This allows retails to increase gains.

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