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The Vitamin Shoppe has launched an Innovation Store in New York City, featuring the AI-powered Shoppe Advisor tool. This digital tool enhances in-store education by providing product details and health content via a touchscreen. "With our expansive assortment and the personalized support of our expert Health Enthusiast associates, The Vitamin Shoppe is making it easier and more engaging for New Yorkers to shop all their favorite health and wellness essentials," Chief Retail Officer Jim Abbatemarco said.
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David Guggina's appointment to succeed John Furner as CEO of Walmart US marks a shift from traditional retail leadership in favor of tech expertise. Guggina's Amazon experience and background in AI adoption, ecommerce, automation and supply chain aligns with Walmart's increasingly tech-driven strategy, which includes its AI-assisted shopping tools. "AI is changing how people shop, and customer expectations are higher than ever," Guggina stated.
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Procter & Gamble is advancing its digital transformation by embedding AI across its operations to enhance consumer connectivity and optimize supply chain processes. CEO Shailesh Jejurikar highlights the rapidly evolving consumer landscape, driven by media fragmentation and inflation, which is reshaping purchasing behaviors. The company's efforts include leveraging AI for product innovation and media strategies, aiming to create personalized consumer experiences and improve supply chain responsiveness.
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| (Justin Sullivan/Getty Images) |
Apple has acquired Israeli startup Q.ai, known for specializing in machine learning applications that enhance audio understanding in challenging environments and detect whispered speech, for approximately $1.6 billion. This move aligns with Apple's strategy to integrate advanced AI features into its products, such as AirPods, which recently gained speech translation capabilities. The startup's 100 employees, including CEO Aviad Maizels, will join Apple.
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Lowe's Mylow app, launched in March 2025 and powered by AI, has doubled the conversion rate of users compared with nonusers by offering targeted content, enhanced visualization tools and in-app purchasing. Mylow's advanced visualization features allow customers to upload photos of their spaces and use AI to customize elements like tiles, mirrors and vanities. The app integrates Google's Nano Banana image generation technology, enabling users to see realistic renderings of their design ideas.
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Miu Miu Beauty has integrated AI into its operations primarily to improve internal efficiency and support its rapid market entry. The brand used AI to pre-test content with segments of its target audience, adapt creative assets for various platforms and pressure-test key decisions in the absence of historical data, says Chief Digital Officer Tiffany James. Tools like Vizit and L'Oreal GPT helped the team predict consumer engagement and accelerate insights while ensuring company data remains secure. James emphasized that AI's role is strictly internal, with strong guardrails in place to prevent it from replacing human creativity or becoming overly consumer-facing.
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Amazon is reportedly in discussions to invest up to $50 billion in OpenAI, marking a significant move after its substantial investments in Anthropic, an OpenAI competitor. This investment could include a deal for OpenAI to use Amazon's AI chips. OpenAI is also seeking additional funding from investors, potentially closing the round at around $100 billion.
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Customer satisfaction in online retail has held steady, with Nordstrom, Amazon and Chewy achieving top scores, according to an American Customer Satisfaction Index study. AI, along with economic conditions, has played a role in enhancing customer experiences, notably improving Walmart's satisfaction score. "AI can enhance the online shopper's experience, but it needs to serve the fundamental drivers like product and service quality and value," said Forrest Morgeson, marketing professor at Michigan State University.
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Brands like Almond Breeze, Dollar Shave Club and Equinox are leveraging generative AI not just to create content, but to satirize the often absurd results produced by the technology. These campaigns intentionally showcase "AI slop" — quirky or over-the-top AI-generated visuals — to both poke fun at the technology and highlight their brand values. In January, Almond Breeze’s campaign received positive feedback, with 43% of responses voicing positive feelings about it, according to intelligence platform Meltwater.
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