Grocers Integrate AI to Enhance Digital Platforms and Boost Engagement

To stay competitive, grocers are leveraging artificial intelligence (AI) to enhance their digital platforms, creating a more engaging and seamless shopping experience. On July 10, technology provider eGrowcery announced the availability of its AI tools for grocers. These tools enable personalized recipes using ingredients from their product catalogs, tailored to specific consumer preferences, and integrated with add-to-cart functionality. This move aims to drive sales through effective contextual commerce.

“We are always seeking to improve the shopper experience, drive additional sales for our retailers, and help them grow market share,” said eGrowcery CEO Patrick Hughes. “Our approach to this recipe initiative does just that and more by creating a deep and powerful approach to provide shoppers with what they want when and where they want it.”

Major Players Adopting AI

Leading grocers are utilizing AI to offer personalized shopping experiences. One major challenge for online grocery shopping is replicating the spontaneous product discovery that happens in physical stores. AI-powered recommendation engines can help recreate this sense of novelty.

Kroger's AI Integration

Kroger has integrated AI into its digital platforms to offer more intelligent search functionalities and tailor the experience to individual users’ habits and preferences. “I believe generative AI is already impacting and will continue to transform the grocery industry,” stated Yael Cosset, Kroger’s chief information officer and chief digital officer. “We continue to use AI and GenAI across the business for improvements such as more relevant creative marketing content, better search outcomes on digital platforms, greater personalization for customers, easier solutions for our associates, and many more areas.”

Boosting Digital Sales and Engagement

AI significantly boosts digital sales and omnichannel engagement for grocers. Online grocer Hungryroot attributed 70% of its sales to its AI capabilities last year. “I very much expect that AI applications in a thin-margin space like grocery will help both with consumer loyalty and with operational efficiency,” said Alex Weinstein, Hungryroot’s chief digital officer.

Walmart's AI-Powered Search

Walmart, the world’s largest grocery retailer, has improved consumers’ experience on its site and app with generative AI search capabilities. The AI provides intelligent recommendations in response to customers’ conversational queries. “Our objective with using GenAI Search is simple — give time back to our customers to enjoy life instead of spending their days searching, scrolling, and tapping,” the retailer stated. “GenAI-powered experiences enable us to be more to our customers — their partners in accomplishing broader missions.”

AI's Importance in Customer Experience

Across industries, AI is seen as essential for meeting consumer expectations. According to a PYMNTS Intelligence survey of 60 CMOs from U.S. firms with at least $1 billion in revenue last year, 80% of CMOs believe GenAI is extremely important to the customer experience.

Consumer Engagement with Online Grocery Shopping

Many consumers engage digitally with grocers. The 2024 edition of PYMNTS Intelligence’s “How the World Does Digital” report, based on a survey of over 67,000 consumers across 11 countries, revealed that 40% of consumers shop for groceries online at least once a month, with 1 in 5 doing so weekly.