Macy's AI shopping assistant drives 400% spending surge

Macy's is seeing a sharp increase in customer spending thanks to its new artificial intelligence (AI)-powered shopping assistant, with early figures showing users spend up to 400 percent more than shoppers who do not use the tool.

The digital assistant, branded "Ask Macy's," guides customers through product discovery, outfit suggestions, and purchase completion, effectively replicating the role of a personal in-store stylist in the digital space.

The initiative comes amid broader challenges in retail, where traditional sales growth has slowed, and digital innovation has become a critical driver of customer engagement.

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Boosting basket size and conversion rates

Macy's AI assistant is designed to reduce friction in the buying journey, helping customers find products faster and offering personalized recommendations. Shoppers who engage with the assistant are encouraged to explore complementary products – "complete the look" suggestions or curated bundles – which has been shown to significantly increase basket size and overall spend.

This reflects a broader trend of how AI is transforming digital customer journeys. CX Network's flagship report, CX Horizons: The State of CX in 2026, based on a survey of 342 CX practitioners, found that 27 percent of organizations see generative AI as enabling hyper-personalization for customers, allowing brands to deliver highly relevant product recommendations and targeted interactions at scale.

It also found that 29 percent of customers are already using AI for service and sales interactions, reflecting a growing customer familiarity with AI-driven tools. This shift is creating new expectations: customers now expect experiences that are not only fast and convenient but also trustworthy, transparent and tailored to their needs.

The strategic importance of CX investments

Macy's AI initiative is part of a broader retail trend emphasizing customer experience (CX) technology. The CX Horizons 2026 report indicates that 41 percent of organizations plan to increase spending on digital CX in 2026, reflecting the growing priority of seamless, intelligent, and personalized digital experiences.

For Macy's, the AI assistant is designed to meet these expectations by providing clear guidance, relevant suggestions, and a frictionless purchase path. The goal is not only to increase immediate spending but also to nurture long-term loyalty in a competitive landscape where consumers judge every brand against the best experiences they've had anywhere.

Growth opportunities and risks

While early data shows a remarkable increase in spending among assistant users, analysts caution that this effect is likely concentrated among high-intent shoppers. Scaling adoption across the broader customer base requires continued investment in usability, personalization, and trust.

Further, consumer trust is emerging as a critical factor. The CX Horizons 2026 report notes that data security and transparency are central to modern loyalty, with awareness of how AI uses personal data now influencing purchasing behavior. Brands that fail to clearly communicate how AI is deployed – or that mishandle personal data – risk losing customer confidence, even if the technology itself is effective.

The growing market for AI shopping assistants

Macy's is not alone in leveraging AI to enhance the digital shopping experience. Across the retail sector, brands are increasingly deploying AI-powered assistants to drive discovery, personalization, and conversations. Luxury retailer Ralph Lauren, for example, recently launched an AI shopping assistant – 'Ask Ralph' - that offers outfit recommendations and helps customers navigate its extensive catalog online.

According to recent market analysis by Grand View Research, the global AI shopping assistant market is expected to expand from an estimated US$3.36 billion in 2024 to around $28.54 billion by 2033, at a nearly 27 percent CAGR, as brands increasingly adopt these tools to deliver personalized, real-time customer experiences.

Other major retailers, including Nordstrom, Walmart, and Neiman Marcus, have also introduced AI assistants or chatbots.

What does the future look like?

Macy's early success with its AI shopping assistant illustrates how technology can dramatically enhance customer engagement and revenue. As retailers increasingly adopt AI for discoverability, personalization, and service, the competitive landscape will hinge on both technical capability and the ability to earn customer trust.

For Macy's, the rollout of "Ask Macy's" represents a major step in digital transformation, one that could redefine how consumers interact with the brand in a market where speed, personalization, and trust are equally critical.

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