Aimed at delivering personalized product recommendations to users, Mastercard is set to introduce a novel AI-powered shopping tool called "Shopping Muse."
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A photo taken on March 14, 2022, shows the logo of Mastercard payment system on a bank card in Moscow.
Introducing Shopping Muse
Mastercard's newest AI-powered shopping tool called driven by Dynamic Yield, a personalization company acquired by Mastercard in April 2022, aims to revolutionize the way customers explore and discover products within a retailer's digital catalog.
As reported by TechCrunch, Shopping Muse is uniquely designed to interpret users' casual language and transform it into customized product suggestions.
With an understanding of contemporary trends and phrases such as "cottagecore" or "beach formal," the tool allows users to pose questions like "What should I wear for a summer wedding?" or "Can you recommend pieces for a minimalist capsule wardrobe?"
Personalized Recommendations
To offer tailored recommendations, Shopping Muse considers the context of the user's shopping journey, the specific questions posed, and the ongoing conversation.
The algorithms analyze data from the retailer's product catalog, incorporating the user's on-site behavior, including product clicks and additions to the cart. Additionally, the algorithms consider real-time and established preferences demonstrated by the consumer.
If a user is logged in, the algorithms may take into account their historical purchase and browsing activities with the retailer, encompassing both online transactions and in-person purchases linked to their account through details such as a phone number or email provided to the cashier.
Beyond assisting users in searching by specific phrases, Shopping Muse possesses the capability to suggest items even when users struggle to articulate their search criteria.
Mastercard clarifies that by leveraging integrated advanced image recognition tools, retailers can offer relevant product recommendations based on visual similarities to other items, even in the absence of precise technical tags.
While fashion represents the initial application for Mastercard's innovative tool, the company envisions the potential extension of this technology into other categories, such as furniture and grocery.
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Ori Bauer, the CEO of Dynamic Yield by Mastercard, highlighted the importance of personalization in delivering desired shopping experiences, emphasizing that AI-driven innovation is crucial for creating immersive and tailored online shopping.
The introduction of Shopping Muse aims to meet consumer standards and enhance the intelligence of the shopping experience.
Mastercard underscores the urgency for retailers to adapt to changing demands by integrating technology. They note that more than a quarter of retailers are already using generative AI solutions, with an additional 13% planning to adopt them within the next year.
This newly launched tool joins the growing landscape of generative AI shopping solutions introduced over the past year. Examples include Google allowing users to receive AI-generated gift recommendations on Search and Microsoft's Bing automatically generating buying guides for queries like "college supplies."
The trend is anticipated to continue, as Gartner recently reported that 80% of customer service and support organizations may integrate generative AI technology in some form by 2025.
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