Summary
How are retailers driving 13x more customer engagement while cutting costs at the same time? What is helping brands like H&M, Sephora, and Amazon deliver fast, personalized shopping experiences that keep customers coming back?
The answer: AI-powered virtual assistants. But these are not the outdated, scripted chatbots of the past. Today’s AI virtual assistants are transforming retail by offering real-time support, hyper-personalized recommendations, interactive experiences, and smoother checkouts – all while boosting revenue and reducing operational costs.
In this blog, we reveal how AI tools for increasing customer retention in retail work, how they drive measurable results like higher loyalty, fewer abandoned carts, and even up to 13x customer engagement using AI in retail.
Want to know how top retailers are staying competitive with AI? Keep reading and you will get all the answers you are looking for right here.
Introduction
- According to Gartner, by the year 2029, AI will be able handle approximately 80% of routine customer support which will help retailers to lower their service costs significantly (nearly 30%).
- IBM reports that by 2025, retail and consumer brands will invest around 3.32% of their revenue into AI – roughly $33 million per $1 billion earned – highlighting the growing role of AI in retail operations.
- A recent PwC survey shows that one in five shoppers now rely on AI-powered tools to find better deals, signaling how AI-driven guidance is becoming a trusted part of everyday shopping.
- IBM and Forbes reveal that AI-powered virtual agents can reduce customer service costs by as much as 30%, making AI a practical solution for better, more efficient support at scale.
- According to Accenture, 75% of retail leaders believe generative AI is critical for driving new revenue opportunities, making AI adoption a competitive advantage for forward-thinking brands.
Today’s retail market is tougher than ever. Customers want fast, personalized, and smooth experiences, but attention spans are shrinking, and choices are endless. If your store does not engage them instantly, they will switch to another brand within seconds.
This growing challenge is why AI-powered virtual assistants are now a must-have for retailers. Unlike old-fashioned chatbots, these intelligent assistants offer personalized recommendations, real-time support, and engaging conversations that make every shopper feel valued.
Retailers using AI tools for increasing customer retention in retail are seeing game-changing results. Reports show they can boost retail engagement with AI by up to 13x, increasing website sessions, customer interactions, and conversions significantly.
In this blog, we will explore how AI-powered virtual assistants improve customer engagement, create a personalized shopping experience with AI, support retail automation, and deliver real results like 13x customer engagement using AI in retail. You will also see real-world examples of virtual assistants transforming retail experience, boosting loyalty, and driving higher sales.
If you want to stay ahead of the competition, understanding conversational AI for retail businesses is the first step.
What Are AI-Powered Virtual Assistants in Retail?
AI-powered virtual assistants are smart, conversational tools that help shoppers find products, get quick answers, and solve problems instantly. They work across websites, apps, and even messaging platforms, giving customers fast and helpful support anytime, anywhere.
But these are not the old-fashioned chatbots many retailers tried years ago. Modern AI-powered virtual assistants use advanced technology like machine learning and real-time data to create human-like, personalized shopping experiences. They play a big role in boosting retail engagement with AI and making the customer journey smooth.
The biggest difference between basic chatbots and AI virtual assistants is flexibility. Old chatbots follow strict scripts, often frustrating customers with robotic replies. AI-powered virtual assistants adapt in real time to shopper behavior, preferences, and buying intent, improving customer engagement naturally.
Retailers are already seeing how AI tools for increasing customer retention in retail are driving real results:
- H&M uses AI to recommend outfit pairings based on individual style.
- Sephora’s virtual assistant suggests products tailored to each shopper’s skin type and beauty needs.
- Amazon’s AI-driven recommendations feel almost personal, increasing both loyalty and sales, including their most famous – “people who bought this, also bought” section, which leads to higher revenue and average order value.
- JLL’s virtual assistant “Cindy” led to a 500% jump in online sessions and 1000% more new users.
In short, virtual assistants are transforming retail experience by offering personalized shopping experience with AI, automating support, and making every interaction more engaging.
How AI-Powered Virtual Assistants Drive 13x Engagement in Retail
Retailers today are boosting engagement by up to 13x using AI-powered virtual assistants. It is not magic – it is smart technology offering speed, personalization, and interactive shopping experiences.
Here is how these tools help boost retail engagement with AI and keep customers coming back.
- Creating Hyper-Personalized Shopping Journeys
Modern shoppers want recommendations that match their tastes, not random suggestions. AI-powered virtual assistants transform the shopping experience by analyzing browsing history, past purchases, and real-time behavior to offer personalized product recommendations.
Examples of personalization in action:
- H&M uses AI to recommend outfit combinations tailored to each shopper’s personal style and past purchases.
- Sephora’s virtual assistant recommends beauty products tailored to your skin type and preferences
- Amazon’s famous “You might also like” suggestions increase sales by making shopping feel personal
Personalized shopping experience with AI builds loyalty. When customers feel understood, they spend more time on your site, buy more, and trust your brand.
- Delivering Real-Time, 24/7 Customer Support
Patience is rare in online shopping. AI customer support in retail ensures instant help at any time, answering questions, solving problems, and guiding purchases without human staff.
AI-powered virtual assistants help retailers:
- Cut customer wait times by up to 70%
- Improve satisfaction rates by 85%
- Support global customers across channels 24/7
For omnichannel and global businesses, conversational AI for retail businesses is now essential to meet rising customer expectations.
- Making Shopping Fun with Gamification and Interactive Experiences
Shopping should feel exciting. AI virtual assistants use gamification to keep customers engaged, driving repeat visits and improving customer engagement.
Retailers are introducing:
- Virtual treasure hunts with exclusive rewards
- Loyalty programs directly within chat interfaces
- Fun challenges to unlock discounts
These tools help virtual assistants transform the retail experience, increasing retention and keeping shoppers curious. Research proves that adding gamified shopping experiences boosts customer loyalty and drives higher conversions.
- Smoothing Checkout and Reducing Cart Abandonment
Cart abandonment costs retailers billions every year. AI-powered virtual assistants help by guiding customers through checkout, offering instant answers, and recommending last-minute promotions.
The benefits of AI virtual assistants during checkout:
- Reduced cart abandonment
- Higher completion rates
- Increased average order values
Retail automation with AI ensures shoppers feel supported throughout the journey, turning more visitors into loyal buyers.
Bottom Line: Retailers using AI-powered virtual assistants see higher sales, stronger loyalty, and up to 13x customer engagement using AI in retail. These tools are transforming the retail experience and helping businesses grow.
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The Real Impact of AI-Powered Virtual Assistants: Engagement You Can Measure
AI-powered virtual assistants are not just the latest tech buzz as they are changing how retailers connect with customers for good. They deliver real results that help retailers scale quickly and stay one step ahead of the competition. Brands using AI tools for increasing customer retention in retail are experiencing massive growth in engagement and loyalty.
A real-world example: JLL’s Virtual Assistant “Cindy”
When JLL Shopping Centers introduced Cindy, their AI-powered virtual assistant, the results were impossible to ignore:
- 500% increase in online sessions
- 1000% growth in new website users
These numbers prove how AI-powered virtual assistants improve customer engagement and boost retail engagement with AI in a short time.
And the success is not limited to JLL. Across the retail industry:
- AI chatbot solutions for retail are delivering conversion rates of up to 70%, turning everyday conversations into real sales.
The broader benefits of AI virtual assistants include:
- More frequent website visits
- Longer browsing sessions
- Higher customer retention through AI customer support retail
- Stronger loyalty driven by personalized shopping experience with AI
With AI-powered virtual assistants transforming retail experience, many brands are already achieving up to 13x customer engagement using AI in retail.
For retailers ready to compete, these results are not optional but the new standard.
- How AI-Powered Virtual Assistants Save Time and Cut Retail Costs
The retail world is changing fast. Customer expectations grow every day, and competition never slows down. To stay ahead, retailers need more than temporary fixes. They need technology that evolves with the market.
That is exactly where AI-powered virtual assistants make the difference.
These assistants keep getting smarter with every interaction, learning and improving as they go. The more these assistants engage with shoppers, the better they get at understanding and serving them. They learn from conversations, buying patterns, and preferences, helping create a personalized shopping experience with AI that feels more human and engaging.
Why AI-powered virtual assistants help future-proof retail:
- These smart assistants adapt in real time as customer needs change, keeping your brand relevant and responsive
- They adjust to new market trends and technology updates
- They help your retail brand stay competitive, adapt quickly, and meet customer expectations every step of the way.
Virtual assistants transforming retail experience is no longer just a trend but a long-term strategy. With AI tools for increasing customer retention in retail, brands can boost retail engagement with AI, drive loyalty, and stay one step ahead.
For retailers focused on long-term growth, conversational AI for retail businesses is becoming essential to stay future-ready and competitive.
CrossML: Your Trusted Partner for AI-Powered Virtual Assistants in Retail
At CrossML, we help retailers improve customer engagement and boost retail engagement with AI through advanced, personalized solutions. Our AI-powered virtual assistants are designed to enhance every step of the shopping journey, from product recommendations to 24/7 customer support, helping brands drive real growth.
Tailored AI Solutions for Retail Success
Every retailer is different, and that is why CrossML delivers AI tools for increasing customer retention in retail that are fully customized to your needs. Our solutions go beyond basic chatbots – our AI-powered virtual assistants create personalized shopping experiences with AI, boost conversions, and ensure seamless customer support.
With CrossML, you get:
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Partner With the Retail AI Experts
Since 2019, global retailers have trusted CrossML to automate support, enhance loyalty, and drive 13x customer engagement using AI in retail. We focus on retail automation with AI, helping brands save time, reduce costs, and stay competitive in a fast-changing market.
Real-World Case Study: Transformed Customer Service in Multiple Stores
Our client, a leading retailer faced challenges in their business, especially their customer service.They struggled with slow customer support, missed personalization, and rising operational costs, especially during peak seasons. Their chatbot could not handle complex questions, leading to frustrated customers and lost sales and loyalty.
CrossML stepped in with a GenAI-powered virtual assistant built using GPT-4, Gemini, and LLaMA. The solution provided real-time, personalized support, with secure integrations across e-commerce platforms, CRMs, and POS systems.
The impact?
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With sentiment-aware performance tracking and context-driven conversations, CrossML helped transform the retail experience, keeping customers engaged while reducing operational pressure. Additionally, we delivered reliable, accurate, and AI-led retail automation that keeps customers satisfied and businesses competitive.
You can checek how our solution works, here:AI Agent for Customer Service
Conclusion
The way customers shop is changing fast, and retailers need to keep up. AI-powered virtual assistants are no longer a nice-to-have technology but essential tools for boosting retail engagement with AI and creating real, personalized shopping experiences.
From offering instant 24/7 support to guiding shoppers with smart recommendations, AI virtual assistants help retailers improve customer engagement, reduce costs, and build long-term loyalty. Real-world examples show these assistants are already delivering up to 13x customer engagement using AI in retail, making them one of the most powerful AI tools for increasing customer retention in retail today.
For retailers ready to stay ahead of competition, transform the retail experience, and boost loyalty, investing in conversational AI for retail businesses is the way forward.
At CrossML, we help retailers achieve these results with AI-powered virtual assistants tailored to your business. Our experts ensure your AI journey drives real impact, higher engagement, and stronger growth.
FAQs
AI-powered virtual assistants boost retail engagement by making every interaction feel personal, fast, and helpful. They guide shoppers, answer questions, and recommend products in real-time, keeping customers hooked and driving them to stay longer.
AI virtual assistants do not just answer questions, they drive real results. By reducing cart abandonment, offering personalized suggestions, and solving problems instantly, they help retailers increase sales, improve customer satisfaction, and build loyalty faster.
Yes, AI-powered virtual assistants really boost retail engagement as they are quickly changing how retailers support shoppers and build stronger connections. Brands using them are seeing up to 13x customer engagement using AI in retail through smarter conversations, faster support, and personalized shopping journeys that keep customers coming back.
The retail world never slows down and neither do your customers. AI virtual assistants are essential because they automate support, offer 24/7 help, and create a personalized shopping experience with AI, keeping your brand competitive and your customers loyal.
Retailers using AI tools for increasing customer retention in retail report up to 13x more engagement. AI assistants keep shoppers active, reduce drop-offs, and make every customer experience seamless, interactive, and memorable.
