What: Macy’s launches an AI-powered shopping assistant across its digital platforms, with users spending nearly 400% more than non-users.

Why it is important: The move reflects a broader industry trend toward footprint optimisation and agility, as department stores adapt to changing consumer preferences and operational realities.
Macy’s introduction of its AI-powered “Ask Macy’s” shopping assistant marks a pivotal moment in the retailer’s digital transformation, as generative AI becomes central to customer engagement and sales growth. Powered by Google’s Gemini AI, the chatbot offers features such as “complete the look” styling suggestions and virtual try-on, both online and in stores, making the shopping experience more interactive and personalised. Early results are striking: customers who use the chatbot spend nearly 400% more than those who do not, suggesting that AI-driven engagement can significantly boost conversion rates and basket sizes. This innovation comes as Macy’s seeks to reverse a decade of declining sales and attract a younger, digitally native audience. The rapid adoption of AI in retail is echoed across the industry, with major players like Walmart and Target also reporting substantial gains from AI-powered tools. As retailers race to deploy these technologies, the ability to deliver seamless, personalised, and omnichannel experiences is becoming a key differentiator in a highly competitive market.

IADS Notes: Macy’s launch of its AI-powered “Ask Macy’s” shopping assistant is emblematic of the rapid transformation sweeping the retail sector, as generative AI becomes a mainstream tool for driving customer engagement and sales. By integrating Google’s Gemini AI across digital platforms, Macy’s has joined a cohort of leading retailers—including Amazon, Walmart, and Target—who are leveraging AI to deliver personalised recommendations, virtual try-on, and seamless omnichannel experiences. The results are striking: Macy’s chatbot users spend nearly 400% more than non-users, echoing Walmart’s finding that AI users build 35% larger baskets (Modern Retail, Feb 2026). This surge in AI-driven shopping is part of a broader trend, with nearly 40% of global shoppers using AI tools for purchase decisions by early 2025 and two-thirds of affluent-market consumers planning to use AI for holiday shopping (BCG, Dec 2025; The Economist, Dec 2025). As retailers race to deploy proprietary AI tools and optimise for conversational commerce, early adopters are seeing measurable revenue gains and capturing a younger, digitally native customer base. However, the pace of change is challenging, with many brands still adapting their digital strategies to remain visible and relevant in an AI-first marketplace (Forbes, Sep 2025; Retail Dive, Sep 2025).

Macy’s just launched an AI-powered shopping assistant: customers who use it spend nearly 400% more