The integration of retail chatbot technology into the retail sector has become increasingly popular important for attracting customers to physical stores and creating engaging shopping experiences.

The use of advanced technologies such as virtual and augmented reality, artificial intelligence and data analysis allow retailers to personalize the shopping experience, simplify payment processes and engage customers in unique ways.

Today the point of sale is just one of the touchpoints of the customer journey and in a sector like retail, where the user experience is the most important aspect, new technologies play in support of a multi-channel strategy that gathers the needs of the user coming from each touchpoint and conveys them to the most suitable point.


The value of AI in retail will reach nearly $41 billion by 2030, up from just $4.8 billion in 2021.

Some significant factors of this market growth include:

  • The growing use of chatbots and voice recognition technologies
  • The proliferation of AI-based image and video analysis
  • Emerging online sales (people who buy online will also tend to interact via chatbot)
  • The rise of Large Language Models
  • The rise of natural language processing and consumer sentiment analysis use cases

Automation and customization: the key words for competitive advantage in the retail sector

The ability to automate and personalize the user experience made possible by artificial intelligence inevitably also impacts the retail sector.

According to a KPMG survey, retail leaders named customer service chatbots as the area with the third-largest impact of AI.

Chatbots and virtual assistants take on customer requests and help automate part of the customer journey to increase customer satisfaction and experience.

How to use chatbots for retail?

From searching for general information to purchasing assistance: chatbots integrate the physical store experience. Some of the potential uses of AI-enabled chatbots in the retail sector include:

  • Online and in-store support
  • Targeted promotions
  • Updated product recommendations
  • More accessible customer service
  • Reduce the workload of retail staff
  • Order tracking troubleshooting
  • Product recommendations
  • Transferring the request to a sales representative

Added to these is the ability to personalize the experience through the collection of data from conversations.


Deloitte defines hyper-personalization as “the most advanced way for brands to tailor their marketing to individual customers.”

Through hyper-personalization, companies can send highly contextualized communications to specific customers at the right place, time, and through the right channel


According to Deloitte’s Personalization Maturity Curve, the more mature the personalization infrastructure, the more significant the increase in revenue.

Personalization maturity curve Deloitte

Artificial intelligence allows us to more easily pursue the objectives of personalizing the experience, providing data derived from conversations with customers through chatbots, but also through AI-based psychometric profiling, which allows us to detect the state of mind and the possible real-time behavior of the interlocutor and to adapt communication style and next best action to take.


In the new era of retail, technology will be key to driving customer loyalty and gaining a competitive advantage.

The physical experience inside the store is enriched by increased interaction, an always available assistance service and greater accessibility to information, without losing the possibility of contact and assistance from the sales staff.
On the other hand, the availability of data derived from customer conversations and the better perception of the needs of individual buyers allows the establishment of a multi-channel virtuous circuit that uses new technologies to involve customers and convey them within the points of sale.


Global Power of Retailing 2023