Mastercard has recently introduced "Shopping Muse," an AI-powered shopping assistant developed by its subsidiary, Dynamic Yield. This innovative tool is designed to enhance the online shopping experience by providing personalized product recommendations through natural language interactions.
Launched in late 2023, Shopping Muse utilizes generative AI to interpret colloquial language and deliver tailored suggestions. For instance, a user can input phrases like "cottagecore" or "beach formal," and the assistant will recommend products that align with these styles. The AI considers the user's profile, intent, and preferences, refining its recommendations over time to offer a more personalized shopping journey. (retaildive.com)
In June 2024, Michael Kors became the first retailer to integrate Shopping Muse into its U.S. website. This collaboration aims to replicate the in-store experience online by translating everyday language into customized product suggestions. Early tests indicated that Shopping Muse led to a 15-20% higher conversion rate compared to traditional search methods. (mastercard.com)
Mastercard's commitment to AI extends beyond Shopping Muse. In October 2024, the company launched new generative AI digital assistant capabilities to enhance customer value. This initiative includes a digital assistant designed to simplify the customer onboarding process, allowing for faster and more efficient adoption of new payment methods. Developed in collaboration with Databricks, this tool employs large language models and Retrieval Augmented Generation (RAG) to automate routine tasks and provide accurate responses to customer inquiries. (mastercard.com)
The integration of AI into online shopping offers several benefits:
- Personalized Recommendations: AI can analyze user behavior and preferences to suggest products that align with individual tastes.
- Enhanced Customer Experience: Natural language processing allows for more intuitive interactions, making it easier for customers to find what they're looking for.
- Increased Conversion Rates: Tailored suggestions can lead to higher engagement and sales, as evidenced by the initial success of Shopping Muse.
- Privacy Concerns: Collecting and analyzing user data raises questions about data security and user consent.
- Over-Reliance on AI: While AI can enhance the shopping experience, over-dependence may lead to a lack of human oversight, potentially resulting in errors or biases.
- Implementation Challenges: Integrating AI tools requires significant investment and technical expertise, which may be a barrier for smaller retailers.
Source: Bloomberg.com https://www.bloomberg.com/news/articles/2025-04-29/mastercard-gives-ai-agents-the-ability-to-shop-on-your-behalf/