Artificial intelligence is rapidly transforming industries, reshaping consumer experiences, enhancing personalisation, and redefining how businesses interact with their customers. While generative AI has captured headlines, AI’s impact extends far beyond content creation. From dynamic shopping experiences to autonomous agents acting on consumers' behalf, brands are leveraging AI in increasingly sophisticated ways.
In this article, we break down AI’s transformative power into three horizons and explore just how brands are leveraging AI to evolve their business:
Generative AI: The Power to Create
Generative AI has already made significant waves in content creation, marketing, and product development. From AI-generated advertising to personalised product recommendations, this branch of AI is enhancing creativity and efficiency at an unprecedented scale.
How brands are innovating with Generative AI
eBay's AI-powered product listings
Creating compelling product descriptions is often a pain point for sellers, which is why eBay has introduced a generative AI content tool to automate the process. Sellers can now input a few details about a product, and AI will generate a well-written, SEO-friendly description that improves the chances of attracting buyers.
For brands and third-party sellers, this development means that AI-generated content is becoming a competitive necessity. Listings with rich, well-structured content are more likely to rank better and stand out in search results, making it important for businesses to leverage AI tools effectively to maintain an edge.
Levi’s AI-generated product content
To create a more inclusive online shopping experience, Levi’s announced its partnership with AI-powered digital fashion studio Lalaland.ai in 2023, to create AI-generated models that would showcase greater diversity in terms of body types and skin tones. The initiative aimed to enhance the online shopping experience by allowing customers to see products represented on a broader range of models.
However, Levi’s announcement was met with backlash, as critics argued that instead of using AI-generated models, the company should have hired real models from diverse backgrounds. Many saw the move as a cost-cutting measure that overlooked genuine representation and employment opportunities for underrepresented groups in the fashion industry. In response, Levi’s clarified that the AI-generated models were not intended to replace human models or traditional photoshoots but rather to supplement their existing diversity efforts and enhance representation in online imagery so consumers can better understand how the product would fit and look on their body shape.
For fashion brands, this technology presents a huge opportunity to improve representation in eCommerce while also reducing production costs. It also signals a shift towards AI-driven personalisation, where customers might soon be able to see AI-generated models that closely match their own body type, leading to a more tailored and engaging shopping experience.
What this means for brands: Businesses that embrace Generative AI can scale content creation, automate personalisation, and refine their marketing efforts in real-time. However, ensuring content quality, brand voice consistency, and ethical considerations remain crucial in AI-driven outputs.
Experiential AI: Redefining Customer Interactions
Beyond content generation, AI is transforming the way consumers interact with brands. Businesses are increasingly using AI to create personalised, immersive, and frictionless shopping experiences that go beyond traditional digital interactions.
How brands are innovating with AI-powered experiences
L’Oréal’s AI Beauty Assistants
L’Oréal has embraced AI to enhance the beauty shopping experience through its AI-powered Skin Genius tool. Available on the L’Oréal Paris website and mobile app, Skin Genius allows users to upload a selfie, which the AI then analyses to assess skin concerns such as fine lines, dark spots, and texture. Based on the analysis, the tool provides personalised skincare recommendations tailored to the user's needs.
For beauty brands, this shift highlights the growing demand for hyper-personalised product recommendations that are driven by AI rather than generic marketing claims. As consumers become accustomed to AI-driven personalisation, brands will need to invest in tools that can deliver tailored recommendations at scale.
Wayfair’s AI-Driven Room Visualisation
Wayfair has integrated AI-powered visualisation tools to help customers see how furniture will look in their homes before making a purchase. Its ‘View in Room’ feature allows shoppers to place 3D-rendered furniture into their living spaces using augmented reality (AR), bridging the gap between online and in-store shopping.
For home and furniture brands, AI-powered visualisation tools are becoming an essential part of the digital shopping experience. Consumers expect interactive, immersive experiences that mimic the in-store browsing process, making it critical for brands to invest in AI tools that enhance decision-making.
Sephora’s AI-Powered Colour Matching
Sephora’s Colour IQ technology uses AI to scan customers’ skin tones and recommend the perfect foundation match. The system analyses thousands of skin tones to deliver precise shade recommendations, reducing the trial-and-error process for shoppers.
For beauty retailers, AI-driven solutions like Colour IQ demonstrate how technology can improve accuracy in product selection, build consumer trust, and drive conversions by reducing uncertainty in online shopping.
Woolworth’s AI-Powered Checkout
Woolworths is using AI to optimise checkout efficiency in its stores. The company’s computer vision technology (a form of AI that enables computers to identify and understand objects and people in images and videos) monitors self-checkout lanes to detect potential scanning errors or theft, reducing friction for customers while enhancing security.
For retailers, AI-powered checkout systems represent a shift towards automation and efficiency. By reducing wait times and improving security, AI can enhance customer satisfaction while streamlining operations.
What this means for brands: Businesses must focus on making digital interactions more seamless and engaging, leveraging AI-driven insights to enhance customer satisfaction. The key is to balance automation with human-like engagement to avoid making experiences feel overly robotic.
Agentic AI: The Rise of Autonomous Assistants
The most advanced stage of AI disruption is Agentic AI - a future where AI acts as an independent agent that shops, negotiates, and makes decisions on behalf of consumers.
How brands are innovating with Agentic AI
Amazon’s Alexa Shopping Assistant
Amazon’s Alexa is evolving beyond a voice assistant into a fully-fledged shopping companion. Alexa’s AI-powered shopping assistant can track price changes, suggest alternative products, and even place orders on behalf of users based on their past preferences.
And – if that wasn’t enough – Amazon has recently introduced “Alexa +’ the next generation of Alexa. Alexa+ is a new personal AI assistant that gets things done - she’s smarter, more conversational, and more capable than ever before.
One of the standout features of Alexa+ is its agentic capabilities, enabling it to take action on behalf of users. For instance, if you need an oven repair, Alexa+ can find a qualified service provider, reach out to schedule an appointment, and finalise the booking through platforms like Thumbtack - all without requiring manual intervention. This evolution positions Alexa+ as more than just a voice assistant; it’s an autonomous digital agent that can proactively handle tasks, making everyday life more convenient.
At the recent Amazon 2025 Devices event, Senior Vice President Panos Panay revealed how Alexa+ is set to revolutionise AI-driven assistance by integrating with hundreds of APIs to streamline complex tasks. Leveraging deep knowledge integration and specialised expertise, Alexa+ can seamlessly manage multiple services - whether that’s making a dinner reservation through OpenTable, booking an Uber for a friend to meet you, or even sending them a text with the details.
For brands, this presents a major shift in how consumers shop. As AI-driven agents become more sophisticated, businesses must ensure their products are optimised for AI-driven search and recommendation algorithms to maintain visibility.
What this means for brands: Retailers and eCommerce platforms must adapt to a future where AI, rather than humans, make purchasing decisions. This means optimising product data, ensuring AI-driven searchability, and preparing for a world where AI acts as both the consumer and the influencer.
AI is no longer a futuristic concept - it’s actively reshaping the way businesses operate, and consumers interact with brands. From generating content and enhancing personalisation to creating immersive experiences and automating purchasing decisions, AI is transforming every stage of the customer journey.
For brands, the key to success will be staying ahead of the curve. Whether through generative AI for content creation, AI-powered experiences for customer engagement, or agentic AI for autonomous shopping, businesses must continuously adapt to leverage AI’s full potential. The brands that embrace these innovations will not only enhance efficiency but also deliver seamless, personalised experiences that meet the evolving expectations of consumers.
Arktic Fox partners with an array of brands to develop a strong eCommerce & digital shelf strategy. Find out how we can help your brand leverage AI to drive growth and maximise the omni-channel opportunity.