Macy's AI chatbot users spend 400% more as retailers race to crack conversational shopping

Macy's Says Users of New AI Chatbot Spend About 400% More Online

Macy's Inc. has launched an AI-powered shopping assistant that's upped spending online among those using the new tool, part of the company's multiyear effort to reverse a sales decline. Customers who use "Ask Macy's," the chatbot that's powered by Google's Gemini platform, have spent around 4.75 times more than those who don't, the company said. Macy's gathered the data during the last several weeks while testing the shopping assistant with about half of visitors to its website. Retailers are creating their own AI chatbots to give customers more of a conversational search experience, worried that without it, shoppers will abandon their websites and conduct research on platforms like OpenAI's ChatGPT. "Every retailer is trying to figure it out one step at a time," Max Magni, Macy's Inc. chief customer and digital officer, said in an interview. "This is anybody's game. Nobody has cracked the code." Around 40% of the top 20 US retailers by revenue have rolled out some form of AI-powered shopping assistant, said Ali Furman, US consumer markets industry leader at PwC. While some companies launched as early as 2024, most deployed their AI assistants starting in mid-2025 into this year, Furman added. "Depth and sophistication vary widely," she wrote in an email. The most effective ones are "less like a chatbot and more like a personal shopping agent who knows the assortment and understands your preferences." There's limited data about the effect on sales and profitability, Furman added, but what has been disclosed is "directionally positive." Brighter or Muted? As of Monday, "Ask Macy's" is available across the company's digital platforms, including its app. Magni said users have gravitated to the chatbot's "complete the look" option - where it suggests shoes and a belt to go with a suit, for example - and the virtual try-on feature that enables shoppers to see what an item looks like on them. "It's probably a younger customer base," Magni said. In stores, Macy's staff have started to use the virtual try-on feature with clients who might not have time in person to see if an item fits, according to Barbie Cameron, the company's chief stores officer. Shoppers using the chatbot might be primed to spend more -- because they need help finding an item quickly for an upcoming party, for example -- compared with consumers just casually browsing the website without AI, Magni acknowledged. Either way, customers' interactions with "Ask Macy's" helps him and his team tweak the underlying technology to make it more useful over time, he said. Thousands of Macy's employees helped sharpen the version of the chatbot that shoppers are using, Magni said. He and his team changed an algorithm after requests for dress suggestions, for example, didn't offer up top brands. "We want to start from an elevated place," Magni said. Also, the bot didn't always take into account that a shopper in Florida might want to be presented with a different selection than someone in Maine because of the weather. And the chatbot's tone was initially cold and transactional, Magni heard from employees. When he asked for T-shirt suggestions for his son, the bot presented Magni with a list saying "Here's a T-shirt for a 10-year-old." Now, the bot's tone has become more conversational, saying lines like, "'Ten-year-olds can have so much fun with color - do you want a brighter or more muted color selection?'" Magni said. "The machine continues to learn."

Macy's just launched an AI-powered shopping assistant. Customers who use it spend nearly 400% more | Fortune

If you've ever stood in front of the mirror and wondered what your outfit's missing, Macy's may have the answer. The company recently launched its "Ask Macy's" AI chatbot, powered by Google's Gemini AI assistant, and it's having shocking success. The chatbot launched across all the company's digital platforms on Monday, but it was tested with about half of Macy's website visitors over several weeks, the company told Bloomberg. Shoppers who use the chatbot spend about 4.75 times more than those who don't, Bloomberg reported. The bot's short-term success comes as Macy's tries to make its comeback after a decade of declining sales. Earlier this month, the company reported net sales decreased by 2.4% last year, but returned to comparable sales growth, up 1.5%. Macy's expects to make $21.4 billion to $21.65 billion in net sales this year, a little less than last year's $21.76 billion, and sees comp sales flat at the midpoint of guidance. Chief Customer and Digital Officer Max Magni explained that customers may be primed to spend more because they're looking for a specific item, such as an outfit for an upcoming event, rather than when they're just browsing, Bloomberg reported. He suspects that the bot is also attracting a younger customer base. The most popular features are the "complete the look" option, where the bot suggests accessories to go with an outfit, and a virtual try-on feature that allows shoppers to see what an item looks like on them. Customers can also use the virtual try-on feature in store, if they don't have time to see if an item fits, Chief Stores Office Barbie Cameron told Bloomberg. More AI shopping assistants are coming as companies and startups bet on making online shopping more seamless. For example, Bill Gates's daughter Phoebe Gates founded Phia, a browser extension that compares prices across the internet. And after more than four years in beta, Marc Lore and Melissa Bridgeford, publicly launched shopping agent Wizard in February. "Every retailer is trying to figure it out one step at a time," Magni told Bloomberg. "This is anybody's game. Nobody has cracked the code." Getting the Macy's bot ready for customers has taken some tweaking, and thousands of employees weighed in, according to Magni. Originally, it didn't take into account that shoppers in different climates may not want to see the same selections. There were also some tone issues, Magni added. When he asked for T-shirt suggestions for his son, the bot coldly offered a list and wrote: "Here's a T-shirt for a 10-year-old." Now, the bot is more friendly. When asked again, the bot replied "'Ten-year-olds can have so much fun with color - do you want a brighter or more muted color selection?'" Magni said. "The machine continues to learn."

Macy's Debuted a New Tool -- And Customers Who Use It Spend 400% More. Here's How It Works.

The tool functions like a digital stylist, emphasizing full-outfit and "complete the look" recommendations, which helps grow basket size and average order value. Ever wonder which accessories would pair well with an outfit? Macy's new AI assistant, "Ask Macy's," can answer that question so successfully that it is driving early users to spend 400% more online, according to Bloomberg. Macy's launched Ask Macy's last week to the general public after weeks of testing the bot as a conversational shopping assistant built on Google's Gemini platform, Bloomberg reported. Ask Macy's is now available across the company's website and app. The bot lets shoppers describe what they want in plain language -- think "I need a dress for a spring wedding in Miami under $150 -- and then surfaces products, styling ideas and "complete the look" suggestions with links to related products. Among the bot's most popular features is a virtual try-on tool that lets shoppers visualize how an item will look on them. Customers can also access the feature in stores when they don't have time for a fitting, Barbie Cameron, Macy's chief stores officer, told Bloomberg. Macy's has tested the bot with about half of the visitors to its website and found that shoppers who use it spend more than four times more than those who don't, per Bloomberg. The move arrives as retailers attempt to create their own AI chatbots, concerned that if they don't, shoppers will turn to ChatGPT to power their shopping experiences -- and take their business elsewhere. "Every retailer is trying to figure it out one step at a time," Max Magni, Macy's chief customer and digital officer, told Bloomberg. "This is anybody's game. Nobody has cracked the code." Thousands of Macy's employees weighed in to get the bot ready for customers, Magni said. Macy's employed 94,189 workers as of February 2025, per Stock Analysis. Magni explained that customers using the chatbot may spend more because they are looking for a specific item, like a pair of shoes for an event, instead of just browsing through the website. He also thinks that the bot is drawing in a younger customer who is more likely to experiment with the tool. Roughly 40% of the top 20 U.S. retailers by revenue have introduced some form of AI-powered shopping assistant, per Bloomberg. While a few companies launched their assistants as early as 2024, the majority began deployments in mid-2025 and have continued rolling them out into this year. The sophistication of these chatbots varies from company to company. The most effective ones act "less like a chatbot and more like a personal shopping agent who knows the assortment and understands your preferences," Ali Furman, U.S. consumer markets industry leader at PwC, told Bloomberg. Macy's reported early momentum from its new chatbot as the retailer continues efforts to rebound after nearly a decade of declining sales. Earlier this month, the company announced that net sales fell 2.4% last year for the fiscal year ending January 31. For the current fiscal year, Macy's projects net sales between $21.4 billion and $21.65 billion, slightly below last year's $21.76 billion.

Macy's AI Chatbot Quadruples Customer Spending | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. These "complete the look" and virtual try-on features were quickly adopted by users of the Ask Macy's chatbot that is now available on the retailer's app and other digital platforms, Max Magni, chief customer and digital officer at Macy's Inc., told Bloomberg in an interview. The retailer has also found that customers who use Ask Macy's have spent 4.75 times more than those who don't, according to the report. Ask Macy's is powered by Google's Gemini, the report said. During testing of Ask Macy's before Monday's comprehensive launch, the retailer made adjustments to ensure that the shopping assistant offers up top brands, takes into account the different products that might be wanted by customers in states with different climates, and a maintains a conversational tone, the report said. "The machine continues to learn," Magni said, per the report. According to information provided on the retailer's website when tapping the Ask Macy's button, the AI shopping assistant can suggest products based on details supplied by the customer such as budget, occasion, color, style and size. It invites customers to tell Ask Macy's what they're looking for "like you would a store colleague." Suggested queries include "I need shoes for a special occasion," "Help me find a gift" and "I'm looking to refresh my bedroom." PYMNTS reported March 18 that Macy's returned to comparable sales growth in fiscal 2025 after years of contracts. During an earnings call, the retailer attributed this improvement in part to its deployment of technology. "I believe Macy's Inc. has significant, underappreciated capabilities in areas such as data science, AI and technology, and our Macy's ecosystem is a fundamental strength," Macy's Inc. Chief Financial Officer Tom Edwards said during the call. The company has added more than 35 internal AI use cases spanning supply chain, merchandising, marketing and call centers, as well as customer-facing and omnichannel functions, Edwards said.