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AI Quietly Transforms Retail: The Behind-the-Scenes Power Beyond Chatbots

Artificial intelligence is rapidly transforming the retail industry, with the most significant changes often not being customer-facing tools, but rather behind-the-scenes decisions like inventory management.

When it comes to AI in retail, many might think of shopping chatbots or virtual try-on applications. However, major transformations might be occurring where consumers cannot see them. A case study from Macy's, featured in an article by MIT Technology Review's commercial content division, reveals that the company is adopting an "AI-first" approach for its backend decisions. Murali Murugan, Senior Director of Engineering at Macy's, states that the true power of AI lies in improving internal processes, such as prioritizing product display in search results, optimizing inventory management in supply chains, and even helping developers write code faster. Although Macy's offers customer-facing tools like "Ask Macy's," an AI shopping assistant, the company's core philosophy views AI as a tool to augment human decision-making, not to replace it entirely.