{"id":22781,"date":"2024-01-03T09:05:55","date_gmt":"2023-06-01T18:48:00","guid":{"rendered":"https:\/\/www.bloomreach.com\/library\/the-art-and-science-of-using-ai-in-merchandising"},"modified":"2025-01-31T19:22:43","modified_gmt":"2025-01-31T19:22:43","slug":"the-art-and-science-of-using-ai-in-merchandising","status":"publish","type":"library","link":"https:\/\/www.bloomreach.com\/en\/blog\/the-art-and-science-of-using-ai-in-merchandising","title":{"rendered":"The Art and Science of Using AI in Merchandising"},"content":{"rendered":"

AI has been the hot new buzzword of late, thanks in no small part to ChatGPT and other generative AI<\/u><\/a> tools. And understandably, many people have approached AI with a certain wariness, whether they\u2019re skeptical of AI\u2019s efficacy or worried it\u2019ll put people out of jobs.<\/p>\n

This scrutiny of AI hasn\u2019t escaped the land of merchandising, either. That\u2019s because for as long as there\u2019s been retail, there\u2019s been merchandising. But with so much focus being placed on AI, what does that mean for the people who\u2019ve always been at the center of the merchandising process?<\/p>\n

AI in Merchandising: Big Deal or Passing Fad?<\/h2>\n

AI isn\u2019t going away, but the good news is it\u2019s also highly unlikely to be replacing merchandising jobs. If anything, AI will simply change the way merchandisers approach their jobs (for the better).<\/p>\n

The most crucial part here is not being overly reactive to AI. Some people will want to jump right in and invest everything they have into AI without really understanding it. For example, do you know where your search and merchandising capabilities sit on the AI maturity curve?<\/p>\n

\"The<\/p>\n

Depending on where you are on that curve, your relationship with AI can vary widely. Do you still need to find or build a solution from scratch<\/u><\/a>? Will you need to train machine learning models or get pixels to learn your customer behavior? Or will you already have day zero learnings<\/u><\/a> to help personalize<\/a> your on-site experience immediately?<\/p>\n

And above all, have you thought about where your merchandisers fit in? It\u2019s becoming increasingly clear that, for the foreseeable future, it\u2019ll be impossible to have AI be a \u201cset it and forget it\u201d solution.<\/p>\n

It\u2019s All About Balance<\/h2>\n

The retailers that will see the most success with AI will be able to balance the science<\/em> behind the technology with the art<\/em> of merchandising. Key to this is the 80\/20 rule of merchandising<\/u><\/a>, where merchandisers use technology to handle 80% of tasks so they can focus their attention on the 20% of tasks<\/u><\/a> that can push the business forward.<\/p>\n

For example, you can leverage AI to identify and prioritize the areas that will have the biggest impact on top-line revenue, which in turn will help merchandisers accelerate their work and drive greater outcomes.<\/p>\n

And are your merchandisers still manually adding synonyms? With the right technology<\/u><\/a>, you can have algorithms automatically handle maintenance and optimize keywords for conversion and revenue. That way, your merchandisers can focus on business priorities and overarching strategy.<\/p>\n

\"Merchandiser<\/p>\n

Basically, if you\u2019re only using AI to ensure that products are in the correct categories, then you\u2019re doing it wrong. At the same time, AI isn\u2019t some \u201cmagical bullet\u201d that\u2019ll boost conversions overnight.<\/p>\n

In our recent Merchandiser Meetup, we explored how many retailers fall into the \u201csale mentality\u201d trap, where the go-to solution is to simply offer sales\/discounts to boost engagement. That\u2019s a waste of AI\u2019s (and your merchandising team\u2019s<\/a>) potential, and it\u2019s a good way to create bargain hunters vs. brand loyalists.<\/p>\n

Instead, with algorithms automating the busywork (the science<\/em>), your merchandisers can implement promotional strategies that inspire your customers with thoughtful storytelling and recommendations (the art<\/em>).<\/p>\n