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

Macy's AI Chatbot Delivers Dramatic Customer Spending Increase

Macy's has launched Ask Macy's, an AI chatbot that's driving remarkable results for the department store chain. Customers who use the AI-powered shopping assistant spend approximately 4.75 times more than those who don't, according to data gathered during several weeks of testing with about half of the retailer's website visitors1

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. The chatbot, which became available across Macy's digital platforms including its app on Monday, represents a significant step in the company's multiyear effort to reverse a sales decline that has persisted for nearly a decade3

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Built on Google's Gemini platform, Ask Macy's functions as a digital stylist that lets shoppers describe what they want in natural language queries3

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. Users can type requests like "I need a dress for a spring wedding in Miami under $150," and the system surfaces products, styling ideas, and complete the look suggestions with links to related products. This conversational search experience marks a shift from traditional keyword-based shopping, addressing retailer concerns that without such tools, shoppers will abandon their websites for platforms like ChatGPT1

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Complete the Look and Virtual Try-On Drive Engagement

The most popular features among users are the complete the look option, where the bot suggests accessories like shoes and belts to complement an outfit, and the virtual try-on feature that enables shoppers to visualize how items will look on them1

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. Max Magni, Macy's chief customer and digital officer, indicated that the tool is attracting a younger customer base who gravitate toward these interactive capabilities2

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. The virtual try-on feature has even found applications in physical stores, where staff use it with clients who don't have time for traditional fittings, according to Barbie Cameron, the company's chief stores officer2

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Magni acknowledged that customers using the chatbot may already be primed to spend 400% more because they're searching for specific items for upcoming events rather than casually browsing1

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. Regardless of intent, the interactions help Macy's refine the underlying technology to boost sales and improve the shopping experience over time.

Retailers Race to Deploy AI-Powered Shopping Assistants

Macy's is far from alone in this pursuit. Around 40% of the top 20 US retailers by revenue have rolled out some form of AI-powered shopping assistant, according to Ali Furman, US consumer markets industry leader at PwC1

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. While some companies launched as early as 2024, most deployed their assistants starting in mid-2025 into this year. The depth and sophistication vary widely, Furman noted, with the most effective ones acting "less like a chatbot and more like a personal shopping agent who knows the assortment and understands your preferences"1

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Limited data exists about the effect on sales and profitability across the industry, but what has been disclosed is "directionally positive," Furman added1

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. "Every retailer is trying to figure it out one step at a time," Magni said. "This is anybody's game. Nobody has cracked the code"1

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Thousands of Employees Helped Refine the Technology

Thousands of Macy's employees, from a workforce of 94,189 as of February 2025, helped sharpen the version of the chatbot that shoppers are now using3

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. Magni and his team changed algorithms after discovering that requests for dress suggestions didn't offer up top brands1

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. The bot also initially failed to account for climate differences, potentially presenting the same selections to shoppers in Florida and Maine despite vastly different weather conditions.

Tone adjustments proved equally important. When Magni asked for T-shirt suggestions for his son, the bot coldly responded with "Here's a T-shirt for a 10-year-old"2

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. Now, the bot takes a more conversational approach, saying things like "Ten-year-olds can have so much fun with color - do you want a brighter or more muted color selection?" "The machine continues to learn," Magni said2

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Sales Growth Amid Broader Turnaround Efforts

The AI chatbot launch comes as Macy's works to stabilize its business after years of contraction. Earlier this month, the company reported net sales decreased by 2.4% last year, though it returned to comparable sales growth, up 1.5%2

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. Macy's expects to make $21.4 billion to $21.65 billion in net sales this year, slightly below last year's $21.76 billion2

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During a recent earnings call, Chief Financial Officer Tom Edwards highlighted the company's technology capabilities as underappreciated strengths. The company has added more than 35 internal AI use cases spanning supply chain, merchandising, marketing, call centers, and customer-facing omnichannel functions4

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. Ask Macy's represents the most visible manifestation of this strategy, directly impacting basket size and order value while potentially expanding the customer base to include younger, tech-savvy shoppers who expect conversational search experiences as standard features of online retail.