The creative revolution reshaping online retail
[Read the previous articles in our series: https://pomegranate.co.uk/articles/natural-language-processing-ai-for-ecommerce]
Just when you had started to understand how artificial intelligence (AI) had changed ecommerce, generative AI (Gen AI) entered the scene and changed the game again.
Gen AI creates entirely new content, including product images, descriptions, personalised recommendations, and even virtual models.
It's an AI application that has been propelling ecommerce into a new era of creativity, personalisation, and efficiency, with McKinsey research revealing that 65% of organisations are now regularly using Gen AI – nearly double the percentage from just ten months prior¹.
Let's explore how Gen AI is transforming ecommerce by fundamentally reimagining the online shopping experience.
Four Ways Generative AI is Revolutionising Ecommerce
Product visualisation and virtual try-ons
One of Gen AI's most significant impacts is revolutionising how customers visualise products before purchase.
Virtual try-ons are not a 'new' feature in the ecommerce world, but until now, helpful, good quality virtual try-on experiences have been few and far between.
Gen AI has been solving this experience issue, and the numbers are compelling:
- 70% of ecommerce order returns are due to style, size, and fit issues²
- Virtual try-on technology can boost sales by up to **300%**³
- AR-enhanced shopping experiences increase add-to-cart rates by up to 20.15%⁴
- Virtual try-ons can decrease product returns by up to **60%**⁵
- 80% of shoppers prefer brands offering virtual try-on experiences⁶
Companies across the industry are utilising Gen AI-powered virtual try-on tools.
Google's Gen AI-powered virtual try-on tool enables customers to select models of different body types (XXS included) and see how clothing would look on diverse body shapes⁷. Furniture retailers like DFS are also implementing similar technology to improve Augmented Reality tools that show how pieces would look in customers' actual living spaces.
Source: Google
2. Personalised content and product recommendations
Gen AI has significantly enhanced the ability of ecommerce platforms to deliver hyper-personalised shopping experiences by analysing customer data and generating tailored content and recommendations.
The impact on customer behaviour is dramatic:
- 74.7% of consumers are more likely to make repeat purchases from brands offering personalised experiences⁸
- McKinsey research indicates that personalisation can increase revenue by **10-15%**⁹
- 58% of marketers using generative AI for content creation report improved performance¹⁰
In a similar way to machine learning, Gen AI algorithms can analyse customer browsing patterns, purchase history, and preferences to recommend relevant products with unprecedented accuracy.
Additionally, dynamic, personalised product descriptions and marketing copy can be autonomously generated and tailored to individual customers, creating a unique experience for each visitor¹¹.
3. Conversational commerce and customer support
We've seen the world of chatbots and AI-powered assistants evolve almost annually, continuously transforming customer service in ecommerce, providing 24/7 support, personalised recommendations, and seamless purchase assistance.
Modern conversational AI can understand natural language queries and provide contextually relevant responses that feel remarkably human.
These systems enable customers to discover products tailored to their specific needs and preferences while handling post-purchase inquiries, order tracking and returns processing without requiring human intervention¹².
With AI-powered chatbots currently handling 70% of online customer interactions¹³ and business leaders reporting chatbots increased sales by 67%¹⁴, this is an opportunity not to be missed by online retailers.
4. Content generation and marketing
Gen AI has revolutionised content creation for ecommerce, enabling businesses to produce high-quality, SEO-optimised product descriptions, marketing materials, and multimedia content at scale.
The efficiency gains say it all:
- 58% of marketers report improved performance from AI-generated content¹⁵
- Generative AI reduces content creation time by up to **75%**¹⁶
- 92% of retailers are investing more in AI for content and personalisation¹⁷
- By 2025, generative AI is expected to account for 10% of all product data, up from 1% in 2021¹⁸
Whether it's automatically generating unique product descriptions or creating marketing copy tailored to different channels and audience segments, Gen AI is solving one of ecommerce's most persistent challenges: creating engaging content at scale¹⁹.
Case study: Sweaty Betty's data-driven personalisation with Gen AI
Sweaty Betty, a UK-based global activewear brand, successfully implemented AI to enhance personalisation and customer engagement. They implemented AI-driven contextual Product Detail Pages using algorithm-powered recommendations, and the results were remarkable:
- Increased conversion rates significantly compared to manually chosen product recommendations²⁰
- Improved Black Friday sales performance through personalised pop-ups with limited stock messaging²⁰
They also utilised Gen AI to create guided selling experiences with personalised quizzes²⁰, which resulted in a 62% uplift in revenue from website recommendation quizzes alone²⁰.
Source: Sweaty Betty
Gen AI's compelling business case
Gen AI is offering unprecedented opportunities for online retailers to enhance customer experiences, streamline operations, and drive growth. From virtual try-ons and personalised recommendations to conversational commerce and content generation, the applications span the entire ecommerce value chain.
As ecommerce continues to evolve, businesses that strategically invest in AI applications like Gen AI will be well-positioned to capitalise on emerging trends and maintain a competitive edge in the increasingly competitive digital retail landscape.
Ready to get started?
We've explored the business case for AI and the three trends transforming the retail industry, from machine learning's predictive insights to NLP's customer service revolution and generative AI's creative breakthroughs. These technologies are reshaping how brands connect with customers.
Here's the thing: while you're reading about AI, your competitors are implementing it. The brands we've showcased aren't lucky; they're strategic.
If you're ready to join them, grab our free beginner's AI action plan to help you get started on your journey.
References
[1] McKinsey & Company, "The state of AI in early 2024: Gen AI adoption spikes and starts to generate value," 2024.
[2] AmplifAI, "60+ Generative AI Statistics You Need to Know in 2025," 2025.
[3] Accenture, "Data and Generative AI Case Studies," 2024.
[4] The-future-of-commerce, "AI reality check: Stats, benefits, and adoption challenges for AI in e-commerce," 2024.
[5] Shopify, "5 AI Predictions Ecommerce Businesses Need To Know (2024)," 2024.
[6] Miquido, "Generative AI in Beauty Industry: Use Cases," 2024.
[7] TheB2BHouse, "E-commerce Statistics, Trends, and Insights for 2024," 2024.
[8] Alumio, "Generative AI & ML: Leveraging E-commerce Trends 2024," 2024.
[9] McKinsey & Company, "Power forward: Five make-or-break truths about next-gen e-commerce," 2024.
[10] Ufleet, "10 AI Trends That Will Revolutionise E-Commerce in 2025," 2025.
[11] Masterofcode, "Generative AI in Ecommerce: Use Cases & Case Studies [2025]," 2025.
[12] BigCommerce, "How Ecommerce AI is Transforming Business in 2025," 2025.
[13] Hostinger, "Ecommerce statistics 2025: key findings and shopping trends," 2025.
[14] Masterofcode, "Generative AI in Retail: Use Cases with Real-Life Examples," 2024.
[15] SellersCommerce, "AI In ECommerce Statistics (2025)," 2025.
[16] LinkedIn, "The Impact of Generative AI on Ecommerce," 2024.
[17] McKinsey & Company, "Generative AI in retail: LLM to ROI," 2024.
[18] Algolia, "Generative AI in ecommerce: potentially huge ROI booster," 2024.
[19] Econsultancy, "Sweaty Betty increases revenue by optimising its personalisation strategy," 2023.
[20] Econsultancy, "Sweaty Betty increases revenue by optimising its personalisation strategy," 2023.
