Analyst Insights: AI Just Made In-Store Shopping Personal

Author: IRPA AI Senior Analyst, Kieran Gilmurray

Remember popping into your favourite shop, browsing the aisles, and maybe having a chat with a helpful assistant?

That classic high-street experience isn't disappearing, but it's certainly getting a 21st-century upgrade, thanks to artificial intelligence blurring the lines between your online clicks and your real-world steps.

Real World Retail Smarts: ‘Phygital’ Digital and Physical Experiences

Imagine this: you walk into a clothing shop, and a sleek digital screen flickers to life, recommending a jumper almost identical to one you were browsed online last night. Or picture pausing by the skincare section just as your phone pings with a special offer for the exact moisturiser sitting in your online shopping basket. Retailers are increasingly blending physical and digital touchpoints, creating 'phygital' experiences powered by AI to better understand and serve you, whether you're on your sofa or strolling through a store

Real-World Smarts: AI in Action

This blending of online insights and in-store actions is manifesting in numerous ways:

Shopping That Reads the Room and You

Think targeted ads but in store. Retailers are using tools like loyalty apps, Wi-Fi logins, and geolocation (always with permission) to personalise your experience on the spot.

At Sephora, for example, their “Color IQ” system scans your skin in-store and recommends the exact foundation shade for your tone turning online research into a perfect in-person match.

Starbucks takes it a step further. Their app considers the weather, time of day, and your order history to suggest what you might want before you even reach the counter. Missed your usual oat latte? The app might just tempt you with toward a new seasonal favourite the moment you walk in.

Your Shopping Cart Just Got Smarter

Gone are the days of barcode scanners and static price tags. With tech like Amazon Go, you can walk into a shop, pick up what you need, and walk straight out as AI cameras track your selections and handle payment automatically. Elsewhere, retailers like Kroger in the US are experimenting with smart shelves that update prices and highlight deals in real time. Even shopping carts are getting an upgrade, equipped with scanners and screens, some now track what you put in, suggest complementary products, and let you check out without queueing.

Smarter Staff Support

AI isn't just customer-facing. It's empowering store staff too. Assistants now have real-time access to stock levels across different locations, detailed product specs, and even your past purchase history (if you’ve opted in). That means more helpful advice, faster answers, and more personal recommendations when you need them.

Tools provide instant access to stock levels across different locations, detailed product information, and even insights into a customer's likely preferences based on their known purchase history, enabling assistants to offer genuinely helpful, personalised advice.

What This Matters for Shoppers and Retailers

If you're a shopper:

Everything’s faster, more tailored, and more convenient. From checkout-free exits to in-store recommendations that match your online habits, AI is cutting friction, making the whole shopping experience more efficient and rewarding.

If you're a retailer:

Connecting online behaviours with in-store actions means deeper insights allowing for hyper-personalised marketing. Smart shelves and inventory systems optimise stock management, reducing waste and ensuring popular items are available resulting in higher conversion rates. AI analytics can pinpoint store traffic patterns to optimise layouts, whilst virtual try-ons can increase conversion rates, reduce returns. Every touchpoint can now be turned into an opportunity to build loyalty by offering a seamless, intelligent experience across all channels.

The high street isn't just surviving; it's adapting and evolving. AI is helping turn everyday retail spaces into smart, responsive environments that get better the more you engage with them - online or off. AI is the engine powering this transformation, whether you're interacting through a screen or stepping through the front door. The retailers who embrace it aren’t just keeping up; they’re redefining what great shopping feels like to you and I.

About the Author: Kieran Gilmurray

Senior IRPA AI Analyst & Advisor, Kieran Gilmurray is a certified executive coach, intelligent automation & digital transformation thought leader & content guru focused on helping solve complicated problems others can't. For the past 25+ years, he has driven business digital transformation programs across a range of industries like digital technologies, intelligent automation, data analytics, social media and robotic process automation, having generated millions of dollars of value.

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Originally posted on 2025-05-29 in the IRPA AI Network — Announcements & Updates