Mastercard is set to unveil a groundbreaking generative AI shopping tool called “Shopping Muse,” which aims to provide users with personalized product recommendations. Powered by Dynamic Yield, a personalization platform acquired by Mastercard in April 2022, Shopping Muse's mission is to transform how customers search for and discover products within a retailer's digital catalog.
The innovative tool interprets everyday language, allowing users to receive tailored product suggestions. Shopping Muse can grasp contemporary trends and expressions, such as “cottagecore” or “beach formal.” Users can engage with it by asking questions like, “What should I wear to a summer wedding?” or “Can you suggest items for a minimalist capsule wardrobe?”
To deliver personalized experiences, Shopping Muse analyzes the context of the user’s shopping journey, the questions being posed, and the ongoing conversation. Its algorithms draw from the retailer's product catalog and observe user behaviors, including product clicks and items added to shopping carts. Additionally, they consider real-time preferences and established trends based on consumer interactions.
For logged-in users, the algorithms may also factor in previous purchases and browsing habits with that retailer. This functionality can include transactions made in-store, linked to the user’s account via their phone number or email address.
Beyond searching by phrase, Shopping Muse excels at recommending items even when users struggle to articulate their desires. As Mastercard points out, “using integrated advanced image recognition tools, retailers can suggest relevant products based on visual similarities, even if accurate technical tags are absent.”
While fashion is the initial focus for Mastercard's tool, its applications are expected to expand into other sectors such as furniture and grocery shopping. Ori Bauer, CEO of Dynamic Yield by Mastercard, highlighted the importance of personalization, stating, “AI-driven innovation is key to delivering immersive and tailored online shopping experiences. By leveraging generative AI through Shopping Muse, we meet consumer expectations and enhance the shopping experience.”
Mastercard emphasizes the need for retailers to adapt to evolving consumer demands by embracing technology. Currently, over 25% of retailers are utilizing generative AI solutions, with an additional 13% planning to adopt them within the next year.
Shopping Muse joins a wave of generative AI tools emerging in the retail sector. For instance, Google now offers AI-generated gift recommendations in Search, while Microsoft’s Bing can produce automatic buying guides for queries like “college supplies.” According to a recent Gartner report, by 2025, 80% of customer service and support organizations are expected to utilize generative AI technology in some capacity, paving the way for even more innovative tools in the future.
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