Amazon, Walmart and Stitch Fix Top the 100 Leading Retailers and Brands Embracing AI Across Ecommerce, Customer Service, and Marketing, According to Inaugural Retail AI Report
31 Julio 2024 - 9:01AM
Amazon, Walmart, and Stitch Fix top an industry-first index ranking
the 100 leading retailers and brands that are embracing AI to drive
impact across their organizations. The inaugural report, The 2024
Retail AI Index, was developed by Lily AI, a technology platform
specializing in AI solutions for retailers and brands, in
partnership with global analytics and strategy consultancy, Radii
Group. The Retail AI Index is a quantitative meta-analysis of the
adoption of AI technologies that benchmarked retailers in the
apparel, footwear, beauty, and home segments.
“AI continues to empower retail leaders to reshape and modernize
the customer experience, and it’s critical for all retailers to
understand where they stand,” said Purva Gupta, Co-founder and CEO,
Lily AI. “AI is becoming table stakes for retailers who want to
stay competitive. Not surprisingly, the biggest of the bigs--Amazon
and Walmart--have the resources to invest in AI extensively. But,
as we found, even relatively smaller companies, such as
Poshmark and Revolve, are taking highly innovative approaches and
reaping the benefits.”
The top 10 retailers and brands in the AI index
include:
- Amazon
- Walmart
- Stitch Fix
- eBay
- Wayfair
- Sam’s Club
- Target
- The Home Depot
- Macy’s
- Nike
Lily's investigation delved deeper than financial investments to
uncover which retailers had thoroughly embedded AI throughout their
operations. The index revealed that numerous companies leverage a
diverse array of AI technologies, including computer vision and
generative AI, to enhance operational efficiency. These leading
retailers and brands are also harnessing AI to bolster
decision-making, boost sales through improved customer experiences,
and optimize marketing initiatives. This multifaceted approach
demonstrates how AI has become integral to various aspects of
modern retail, from back-end processes to customer-facing
interactions.
Key findings include:
- While the index’s top performing
retailers’ revenues exceed $10 billion, the variance in the
ranking—from #1 Amazon to #46, BJ’s
Wholesale Club, shows the differing public-facing
priorities of AI. Both Amazon and Walmart (#2)
lead in AI adoption and continue to leverage substantial financial
resources to invest in advanced AI technologies and talent.
- No clear correlation exists between a
retailer’s index rank and overall revenue, suggesting retail is
still in nascent stages of AI integration and it is too early to
see the full financial impact.
- Stitch Fix, a
retailer with $1.6 billion in revenue in 2023, is ranked number 3.
Stitch Fix stands out because they leverage several AI-based
technologies to deliver personalized shopping, building on their
original business model of tailored/recommended clothing bundles.
Stitch Fix illustrates how mid-size companies can move toward
significant AI adoption with focused investments that drive revenue
and advance their mission while building on existing data and
models.
- Some companies with a higher AI
adoption rankings have acquired or joined in strategic partnerships
with AI firms, such as Wayfair’s (#5) acquisition
of LLM startup ThirdAI and IKEA’s (#20) investment
in Waaabi, a generative AI autonomous truck company.
- Poshmark, another
retailer with revenues of under $1 billion, came in at #18. They
recently introduced an AI-powered tool called Promoted Closet which
uses machine learning to match shoppers’ search terms with promoted
listings. Not only does Promoted Closet contribute to a more
enjoyable customer journey, but it also increases visibility and
sales potential for sellers.
- Another retailer with revenues around
the billion dollar mark at $1.1 billion, Revolve,
came in at number 19. Through 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.
To learn more and to download a full copy of the index, please
visit lily.ai
Methodology
- Retailers selected based upon criteria
including revenue size, category focus, and geographic focus.
- Benchmarking parameters included an
evaluation of each retailer across four dimensions:
- Talent/Operations—measuring internal
capabilities through the number of employees, the proportion of AI
talent relative to total employees, and AI-related job roles and
postings.
- Company/Financial—gauging historical
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, categorizing applications
into levels of AI adoption including automation, analytical AI,
personalization, and generative AI.
- News/Media—assessed AI-related
marketing initiatives and media presence the analysis of 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, earnings calls, investor
presentations, LinkedIn, Meltwater, Indeed, and BuiltWith.
About Lily AILily AI is a female-founded retail
technology company empowering retailers and brands by bridging the
gap between merchant-speak and customer-speak. Leveraging
generative AI, computer vision, natural language processing,
machine and deep learning, Lily AI enhances customer shopping
experiences by injecting human-centered language throughout the
retail ecosystem to improve search and discovery, everywhere.
Integrated with Google Merchant Center and leading eCommerce,
marketplace, and product management platforms, Lily AI maximizes
existing media and technology investments to deliver upwards of
9-figure revenue lift through improved product attribution and
descriptions, increased ad impressions, and higher conversion.
Learn more at www.lily.ai.
Media Contact:Berns Communications GroupMichael
McMullanmmcmullan@bcg-pr.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/9d9e835b-058f-4438-bb41-699ec5017869