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Fortune
Fortune
Phil Wahba

An AI overhaul at Macy's is fueling the 168-year-old retailer's turnaround

Macy's collage (Credit: Illustration by Mark Harris; photos: Yuki Iwamura—Bloomberg/Getty Images and Courtesy of Macys (2))

After Macy’s launched its AI-powered “Ask Macy’s” shopping assistant in March, executives quickly noticed that one feature was a particularly big hit with customers. The chatbot’s “Complete the Look” virtual try-on feature invites users to upload a photo of themselves and then suggests different looks—either complete ensembles, or items to compliment what they’re wearing. Its popularity is paying off: Shoppers who use the feature spend almost five times more per session on Macy’s web site than those who don’t.

Like many retailers, Macy’s spent a good chunk of the 2010s throwing spaghetti at the wall to see what stuck when it came to tech innovation. But now executives hold up “Ask Macy’s” as a model of the kind of innovation they are pursuing.

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