How Leading eCommerce Brands Are Actually Using AI
Everyone has an opinion about how you can or should use AI.
But what are real, successful eCommerce brands actually doing with AI today?
Last week, MobiLoud attended the New York Fashion Ecommerce Summit, where our Head of Growth Nihal Mandanna moderated the "Fashion Forward Technologies" panel.
The discussion brought together leaders from major retail brands to explore how AI, AR, and other emerging technologies are reshaping the fashion landscape.
Here's our detailed breakdown of the most valuable insights for DTC & retail operators to be aware of.
AI Use Cases in eCommerce & Retail
We want to see how real brands are integrating artificial intelligence in their business.
To what extent is AI powering major eCommerce brands?
The big revelation?
While everyone's talking about ChatGPT and generative AI, established brands are focusing on practical, revenue-driving applications - while maintaining a human touch.
Smart Store Operations
Tapestry is pushing boundaries by training their own LLM on customer data. The brand's Head of UX, Sabrina Wong, explains:
"We were inspired to create our own AI app for store associates. Store associates have a lot of customer interactions and great data about customer trends."
The app processes real-time customer feedback and automates store adjustments - everything from music to merchandising.
Their results in Japan show the power of this approach:
"Japan is recently going through high tourism, and we've been able to track tourist customer profiles - what they like, what they don't like, shopping behavior - and immediately change the assortment strategy on the floor."
Customer Service Evolution
Eileen Fisher is taking a measured approach to AI customer service.
They're feeding the data necessary for AI to easily serve information their customers need to make product choices.
IT Director Mike Coble shares:
"We have Zendesk currently, and customers can chat with chatbots. We're adding AI components by feeding in all our product data - which sweaters get pills, how to fix pilling - and integrating with order data so customers can self-service order adjustments."
They're also exploring generative AI for outfit recommendations:
"We're talking to vendors about feeding in tech pack information so customers can say 'I'm going to a conference in Houston in August' and get AI-crafted outfit recommendations using actual product data."
The Real Story on Personalization with AI
AI can be a powerful way for eCommerce stores to create a personalized shopping experience for customers.
But Adore Me brought serious reality checks about personalization at scale.
They've successfully built 20 customer segments with different experiences, but Marie Prune de Batz, Performance Marketing Director, shared honest insights about the challenges:
"Everyone talks about having a website created at customer level. The difficulty isn't knowing what customers want - we're data driven. It's implementing it in the tools and having enough tech resources."
She outlined specific challenges:
- Losing merchandising visibility
- Difficulty tracking and fixing issues
- Complications with automated product feeds
- Challenge of replicating problems when they occur
- Integration difficulties with platforms like Google Retail API
"Today, our merchandising is made automatically but with supervision from merchandisers that know the products perfectly. Tomorrow, if it's 100% data driven by AI, we won't have any control, and if there's an issue, we won't know."
AI/AR for Sizing and Returns
Returns continue to plague margins for eCommerce brands, and sizing is a big driver of this.
It's estimated that returns cost brands $550 billion annually - largely because 70% of online shoppers struggle to find clothes that fit.
Several panelists shared concrete solutions, with the help of AI and AR:
Virtual Try-On Technology
Both Adore Me and Eileen Fisher partnered with Visual for virtual try-ons.
For Adore Me, with 67 sizes, it's been crucial for first-time buyers.
De Batz noted:
"The most challenging part with intimate shopping online is often fit. If you're not sure about your size or have no idea how a garment will look on your body, it's hard to shop intimates online."
AI Size Recommendations
AI has the potential to be a game-changer for eCommerce brands in terms of providing more accurate size data for online shoppers.
Bold Metrics is helping brands move past traditional size charts. As Jeff Mergy explains, size charts are often ignored.
"Only half a percent of shoppers click size charts, and they're not going to measure themselves."
Their approach uses AI to calculate measurements from simple questions, then maps to brand-specific sizing.
Retrofête implemented AI sizing through Bold Metrics.
On this, Maddie Katz says:
"This gives customers the ability to enter certain dimensions of their body. Then we can say 'this size will fit perfectly' or 'if you size up, it may be loose here and tight there.'"
AI Increases Need for Loyalty and Customer Connection
A surprising trend emerged to do with AI in eCommerce: as brands get more tech-savvy, they're actually increasing human interaction for their best customers.
(this was actually one of our top predictions for eCommerce in 2025 - that brands will need to invest in human experiences alongside AI)
High-Touch Programs
Eileen Fisher hosts exclusive WebEx sessions where they will have a talk and show for their top 100-200 customers, discussing new products and sustainability practices. They're also curating social influencers as brand ambassadors with dedicated website spaces.
The Human Element
Retrofête found success with in-house VIP stylists.
Katz explains:
"Whether it's an in-store shopping appointment or via texting, [stylists] can access customer data across any channel. Once customers build a relationship with the stylist, they keep coming back for any event."
Tapestry's Coach brand combines tech and tradition:
"We have a robust loyalty profile called Coach Insider with exclusive bags and promotions. Through Coach Insider data, we discovered Gen Z customers really liked bag charms, so we started pushing more targeted promotions."
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These insights just further the notion that AI is a tool for eCommerce brands, and goes best if it's hand-in-hand with a human touch.
Your customers are still real people, and loyalty is a human characteristic.
Brands should find ways to use AI to elevate their retention marketing strategy, without replacing the parts of your strategy that appeal to human emotions and desires.
Alongside the insights and automation provided by AI, leaning into retention-focused channels like email, mobile apps and push notifications will help you build a brand that customers love, while using tech to streamline more of your backend operations.
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Balancing AI with Brand Identity
During the Q&A, an attendee raised a crucial question: How do brands balance personalization with their design aesthetic, especially when certain products are designed to fit a specific way?
Mike Coble from Eileen Fisher offered a practical framework:
"Think of AI like hiring an intern. You never have them churn out the final product. You say this person's going to help me get stuff done quicker."
He suggested using AI to generate initial options - like 50 different outfit combinations from existing products - but having merchandisers make final decisions.
Wong reinforced this perspective:
"AI is assistive technology meant to help you with your work but never replace your creativity. It always has to amplify human creativity and human connection."
The Future in AI for eCommerce
What's next for AI in eCommerce?
The panel's future predictions focused on practical innovations:
Product Development
Jeff Mergy from Bold Metrics predicts brands will be able to use customer data to take personalization to a whole new level - not just personalized marketing, but personalizing the products themselves.
"In five years, brands will use shopper body data to design products. It's not going to be 'I have to decide between a medium and large and make a sacrifice.' Some players will move to mass-producing custom clothing."
Website Evolution
Marie Prune de Batz from Adore Me foresees more disruptions to the traditional online shopping experience, and a new way to look at eCommerce websites.
"Ecommerce websites haven't really been disrupted since creation. Virtual try-on is the first real disruption because you lose the notion of category pages. You just see products on models and swap around. I'm sure within weeks we'll see more disruption of this traditional funnel."
AR/VR Experience
Sabrina Wong from Tapestry sees AR transforming the fashion show experience, merging real-world experiences with digital.
"Imagine watching a runway in your living room with AR glasses."
Bottom Line for AI in eCommerce in 2025
The panel revealed clear priorities for AI implementation in eCommerce:
- Focus on specific problems: returns, sizing, customer service
- Keep humans supervising AI decisions
- Build tech incrementally - don't try to personalize everything at once
- Remember top customers still need human connection
- Consider implementation costs and resources before chasing full personalization
As Wong emphasized, AI is there to help you, not replace you. It’s a tool, not something that’s going to run your business by itself.
eCommerce brands can get a lot of value from AI - and we could go so far as to say it may be considered irresponsible for brands not to explore how AI can improve their workflow, and get more done for less expense, and in less time.
However, as these industry leaders share, it’s about using AI as a means to an end. And that end is ultimately, in most cases, to provide a better customer experience.
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