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Exclusive: Amazon and Walmart rank highest among retailers for AI implementation

The insight: Amazon, Walmart, and Stitch Fix topped Lily AI’s inaugural Retail AI Index—provided exclusively to EMARKETER.

The index ranks retailers based on how extensively AI is embedded throughout their organizations, the proportion of AI talent relative to total employees, the array of technologies in use—including generative AI (genAI) and computer vision—and any other investments made in the field.

Zoom out: While it’s no surprise that heavyweights Amazon and Walmart lead the pack when it comes to AI adoption and investment, smaller retailers are also finding success with initiatives both consumer-facing—like personalized product suggestions—and internal—like using AI to determine pricing and merchandising strategies. While the top 10 is peppered with big names like Target and Home Depot, it also includes retailers like Macy’s and eBay, which are relying heavily on AI to restore flagging sales.

One of the most popular uses of AI involves personalization, as retailers look for ways to be more relevant to shoppers, improve conversion rates, and increase customer satisfaction and engagement. Companies like Lowe’s, Asos, and Williams-Sonoma are all using the technology to deliver targeted results based on customers’ preferences, interests, and behaviors.

Others are taking a more innovative approach. Fashion brand Revolve used AI to design a series of collections, while Sephora debuted a tool that allows shoppers to upload a photo of an item—like jewelry—and recommends makeup shades and products that match it.

The big takeaway: The wide array of companies featured in Lily AI’s index shows that AI is increasingly a must-have tool in retailers’ arsenals, especially as they look for ways to deliver more personalized experiences, drive efficiencies within their organizations, and head off competitors.