Mastercard is launching a new generative AI shopping tool called "ShoppingMuse" designed to help users get personalized product recommendations. The tool is powered by DynamicYield, a personalization company acquired by Mastercard in April 2022. Mastercard said the idea behind ShoppingMuse is to "revolutionize the way customers search and discover products in retailers' digital catalogs."
The tool translates a user's spoken language into tailored product recommendations. ShoppingMuse understands modern trends and phrases like "cottagecore" or "beachformal." You can ask the tool questions like: "What should I wear to a summer wedding?" or "Can you recommend pieces for my minimalist capsule wardrobe?"
To provide personalized recommendations, ShoppingMuse considers the context of a user's shopping experience, direct questions and the content of the conversation. The algorithm uses data from retailers' product catalogs as well as shoppers' on-site behavior, such as clicking on certain products and adding products to shopping carts. These algorithms also look at real-time and known preferences displayed by consumers.
If the user is logged in, the algorithm may consider their past purchases and browsing history with that retailer, including any in-person purchases linked to their account by providing a phone number or email to the cashier.
In addition to helping users search by phrase, ShoppingMuse can also recommend products when users can't find the words to describe their search. Mastercard explains, "Using integrated advanced image recognition tools, retailers can recommend related items based on visual similarity to other items, even if they lack the correct technical labeling."
While fashion is the first use case for Mastercard's new tool, the company says the technology can be expanded to other categories such as furniture and groceries.
Ori Bauer, CEO of Mastercard Dynamic Earnings, said in a statement: "Personalization gives people the shopping experience they want, and AI-driven innovation is the key to unlocking immersive, customized online shopping. By harnessing the power of generative AI in ShoppingMuse, we are meeting consumer standards and making shopping smarter and more seamless than ever before."
Mastercard said retailers must adapt to changing needs by embracing technology, noting that more than a quarter of retailers already use generative AI solutions and a further 13% plan to adopt these solutions in the next year.
The new tool is one of many generative AI shopping tools released last year. For example, Google now lets users receive AI-generated gift recommendations in searches, while Microsoft's Bing can automatically generate buying guides when you use a query like "college supplies." We'll likely see more tools like this in the future, as a recent Gartner report predicts that by 2025, 80% of customer service and support organizations will have some form of application of generative AI technology.