Macy's AI Chatbot Boosts Spending Dramatically

Macy's Inc. has introduced an AI-powered shopping assistant named 'Ask Macy's', built on Google's Gemini platform, which has reportedly led to a substantial increase in online spending among its users. Initial testing over the past several weeks showed that customers engaging with the chatbot spent about 4.75 times more than those who did not. This conversational tool offers features such as suggesting complementary items to complete an outfit and enabling virtual try-ons, allowing shoppers to visualize how products would look on them.

The implementation of 'Ask Macy's' is part of a multiyear strategy to reverse declining sales and keep pace with retail trends. Retailers nationwide are increasingly adopting AI chatbots to provide a more engaging search experience, aiming to prevent shoppers from seeking product information on external platforms. This trend is evidenced by approximately 40% of the top 20 US retailers by revenue having already deployed some form of AI shopping assistant, with most launching in mid-2025 or later.

Macy's continues to refine its AI technology based on user interactions and employee feedback. Significant adjustments have been made to improve the chatbot's algorithm, ensuring it recommends top brands and considers regional preferences, such as weather differences affecting clothing choices. The tone has also evolved from transactional to more conversational, enhancing the user experience. In-store, Macy's staff are also leveraging the virtual try-on feature to assist customers efficiently.