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Retail is at a turning point.
AI is no longer a futuristic idea or marketing buzzwordits a business necessity. Consumers expect intelligent, seamless, and personalized experiences at every touchpoint. The brands that deliver on those expectations will win. Those that dont will fall behind.
Still, when I talk with retail leaders, I hear the same concerns again and again:
How do we make AI feel natural, not robotic?�
Can it really drive salesor is it just a cost-cutting tool?�
How do we integrate AI without blowing up our current operations?�
And beyond the contact center, where else can AI have real impact?
These arent just passing questions. Theyre real blockers, slowing down progress. Thats why we launched an AI Lab webinar series, and write articles like this to get information out publicly with practical, business-first answers.
AI needs to do more than automate
Retailers have dipped their toes into AIautomated chatbots, product recommendations, predictive analyticsbut too often, these tools operate in silos. That leads to clunky experiences and limited impact.
The mindset is shifting. Its no longer just about efficiency. Its about impact. AI shouldnt only reduce costs. It should increase engagement, drive revenue, and build customer loyalty.
Here are three principles weve seen drive real success:
1. AI should sell, not just support
Traditionally, retail AI has played defensehandling order tracking, return policies, and FAQs. But its time to put AI on offense.
Think of guided selling: AI that acts like a smart associate, asking about customer preferences, budget, or styleand responding naturally. Its the digital equivalent of a great in-store experience.
One example: A luxury jewelry brand used conversational AI to recommend add-ons and upgrades based on a customers past purchases. The result? A 30% boost in upsellswith zero human agent involvement.
The takeaway: AI can drive conversions and revenue. It just needs to be designed with that goal in mind.
2. Proactive > reactive
Most AI waits for customers to initiate the conversation. Thats a missed opportunity.
Take cart abandonment. Nearly 70% of online carts are abandoned before checkout. AI can spot hesitationlingering on the checkout page, revisiting itemsand respond in real time with:
A one-click checkout to reduce friction
A last-minute incentive
A helpful AI assistant offering answers
AI shouldnt just respond when customers get stuck. It should help them move forward.
3. AI that works with people, not instead of them
The most successful retailers dont replace humansthey empower them.
Think about frontline staff. AI can handle the repetitive stuff so humans can focus on high-value interactions: complex purchases, emotional moments, loyalty-building conversations.
It also works the other way. Human agents generate valuable dataabout buying habits, objections, preferencesthat AI can learn from and use to personalize future experiences.
Thats the real win: a human-AI partnership that gets smarter over time and drives better outcomes across the customer lifecycle.
Rethink the AI roadmap
Too often, brands start with customer support because it feels safe. But forward-thinking leaders are broadening their lensand seeing greater return.
Were working with retailers that are embedding AI into every stage of the customer journey:
Pre-purchase: Digital consultations, guided product discovery, preference-based recommendations
In-purchase: Smart upsell suggestions, checkout support, frictionless payments
Post-purchase: Delivery updates, service requests, loyalty rewards, re-engagement
And heres the kicker: these touchpoints dont need to be siloed. The right AI platform can stitch them together into a seamless, personalized journey.
What makes the difference
Three things separate retailers who are winning with AI from those still spinning their wheels:
Start with the customer, not the tech. Dont ask, What can this tool do? Ask, Where is the customer getting stuckand how can we help them move forward?
Design for outcomes. If your AI project doesnt tie back to a business metricconversion, lifetime value, customer satisfaction (CSAT)youre flying blind.
Make it measurable. Set clear goals. Track impact. Optimize based on results. This isnt about proving AI works in generalits about proving it works for your brand.
Final thought: Innovation without disruption
AI doesnt need to blow up your tech stack. It should integrate with your existing systems, layer in intelligence, and get smarter over time.
We call it innovation without disruption. You dont have to rip and replace. You just have to start with the right mindsetand the right partner.
AI in retail isnt just about answering questions. Its about asking the right onesand making sure your tech stack is ready to answer them in ways that actually move the business forward.
John Sabino is CEO of LivePerson.