Amazon, Walmart and Stitch Fix are among the top 100 retailers and brands using AI in e-commerce, customer service and marketing, according to the first Retail AI Report

The 2024 Retail AI Index report serves as an important benchmark for understanding the impact of AI in retail

Retail AI Index 2024: Discover the top 100 frontrunners

MOUNTAIN VIEW, Calif., July 31, 2024 (GLOBE NEWSWIRE) — Amazon, Walmart and Stitch Fix lead an industry-first index that ranks the top 100 retailers and brands using AI to drive impact in their organizations. The first report, The Retail AI Index 2024was developed by Lily AI, a technology platform specializing in AI solutions for retailers and brands, in collaboration with global analytics and strategy consultancy Radii Group. The Retail AI Index is a quantitative meta-analysis of AI technology adoption that compared retailers in apparel, footwear, beauty and home.

“AI continues to enable leading retailers to redesign and modernize the customer experience, and it’s critical for all retailers to understand where they stand,” said Purva Gupta, co-founder and CEO of Lily AI. “AI is becoming a cornerstone for retailers looking to remain competitive. Not surprisingly, the big guys – Amazon and Walmart – have the resources to invest heavily in AI. But as we’ve found, even relatively small companies like Poshmark and Revolve are taking highly innovative approaches and reaping the benefits.”

The top 10 retailers and brands in the AI ​​Index include:

1. Amazon

2. Walmart

3. Stitchfix

4. eBay

5. Wayfair

6. Sam’s Club

7. Goal

8. The Home Depot

9. Macy’s

10. Nike

Lily’s research went deeper than just financial investments to find out which retailers have integrated AI throughout their operations. The index found that numerous companies are leveraging a variety of AI technologies, including computer vision and generative AI, to increase operational efficiency. These leading retailers and brands are also using AI to improve decision-making, increase sales through improved customer experiences, and optimize marketing initiatives. This multi-faceted approach shows how AI has become an integral part of various aspects of modern retail, from back-end processes to customer-facing interactions.

The key findings include:

• While the top-performing retailers in the index have sales exceeding $10 billion, their rankings vary from 1st to 3rd place Amazon up to #46, BJs Wholesale Clubshows the different priorities of the public regarding AI. Both Amazon and Walmart (#2) Be a leader in AI adoption and continue to use significant financial resources to invest in advanced AI technologies and talent.

• There is no clear correlation between a retailer’s index rank and its total revenue, suggesting that retail is still in the early stages of AI integration and it is too early to see the full financial impact.

• Stitchfixa retailer with 2023 revenue of $1.6 billion, ranks No. 3. Stitch Fix stands out because it leverages multiple AI-based technologies to enable personalized shopping, building on its original business model of customized/recommended clothing bundles. Stitch Fix shows how mid-sized companies can work toward significant AI adoption with targeted investments that increase revenue and advance their mission, while building on existing data and models.

• Some companies with a higher AI deployment ranking have established or entered into strategic partnerships with AI companies, such as Wayfair (#5) Acquisition of the LLM startup ThirdAI and IKEA (#20) Investing in Waaabi, a generative AI company for autonomous trucks.

• Poshmarkanother retailer with sales under $1 billion, came in at number 18. The company recently launched an AI-powered tool called Promoted Closet, which uses machine learning to match shoppers’ search terms with promoted offers. Promoted Closet not only helps create a more pleasant customer experience, but also increases visibility and sales potential for sellers.

• Another retailer with sales of around $1.1 billion, Turncame in at number 19. As part of their innovative partnership with AI Fashion Week, Revolve sold AI-designed clothing on their website. They showcased three winning collections created using AI image generators such as Midjourney and Stable Diffusion.

The story continues

To learn more and download a full copy of the index, please visit lily.ai

methodology

• Retailers were selected based on criteria such as sales size, category focus and geographic focus.

• Benchmarking parameters included an assessment of each retailer along four dimensions:

  • Talent/Operations – Measuring internal capabilities based on headcount, AI talent as a percentage of total workforce, and AI-related job descriptions and postings.

  • Corporate/Finance – Assess past and future investments in AI by analyzing financial documents and earnings calls for mentions of AI-related terms.

  • Technical – Evaluated the implementation of AI technologies on retailer websites and categorized applications into AI deployment levels, including automation, analytical AI, personalization, and generative AI.

  • News/Media – Evaluate AI-related marketing initiatives and media presence by analyzing media mentions and press releases.

• The Retail AI Index combines thousands of publicly available data points from first-party and third-party sources, including public filings, quarterly earnings calls, investor presentations, LinkedIn, Meltwater, Indeed and BuiltWith.

About Lily AI
Lily AI is a woman-founded retail technology company empowering retailers and brands by bridging the gap between merchant language and customer language. Leveraging generative AI, computer vision, natural language processing, machine and deep learning, Lily AI improves the customer shopping experience by injecting human-centered language across the retail ecosystem to improve search and discovery everywhere. By integrating with Google Merchant Center and leading eCommerce, marketplace and product management platforms, Lily AI maximizes existing media and technology investments to drive over nine-figure revenue uplift through improved product attribution and descriptions, increased ad impressions and higher conversion. For more information, visit www.lily.ai.

Media contact:
Berns Communications Group
Michael McMullan
[email protected]

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