How AI is Disrupting Commerce Today

Once upon a time, searching online meant typing in keywords and hoping for the best—now, AI search engines practically finish your thoughts for you. (Creepy? Maybe. Convenient? Absolutely.)

From intent-driven engines that cut through the clutter faster than you can say “page two of search results,” to AI assistants delivering real-time, personalized recommendations—AI isn’t some distant promise. It’s already transforming how customers discover, decide, and buy, turning what once felt like science fiction into standard practice for brands leading the digital charge.

But how are businesses actually putting this powerful tool to work?  We’ll dive into a few real-world examples, but first let’s take a moment to define what we really mean by “AI” in the context of customer experience—and why it matters now more than ever.

What is Artificial Intelligence (AI)?

Forget the movies you’ve seen—artificial intelligence (AI) isn’t about robots taking over the world. It’s about machines getting smart enough to understand what we want, when we want it. 

At its core, Artificial Intelligence refers to the development of computer systems that can perform tasks that typically require human intelligence. These tasks include problem-solving, learning, understanding natural language, and even recognizing patterns. From personalized recommendations to automated chat support, AI is what’s quietly powering many of the experiences customers now expect as standard.

Why Do Brands Use AI?

For a long time (and still sometimes now), it can feel like AI is just a buzzword that businesses use to make themselves sound innovative. But if utilized correctly, AI can be the engine that quietly drives a new standard of convenience and personalization - and it’s not just consumers benefiting from this shift.

Many brands are leaning into AI in a real way to stay ahead in a fast-moving, customer-first world. In fact, 45% of brands are already using AI in their marketing efforts, tapping into its ability to scale personalization, streamline operations, and accelerate smarter decision-making.

From boosting efficiency behind the scenes to enhancing the front-end experience, AI enables businesses to work smarter and serve customers more intuitively. 

How Do Brands Use It?

So, what does this look like in practice? We all know about the AI chatbots that are now available on every website, but AI can also be utilized to deliver hyper-relevant product recommendations, optimize search experiences, and even predict what customers might need next. Whether it’s enhancing customer journeys or fine-tuning logistics, AI is showing up in ways that make shopping faster and smoother!

Now for the fun part—real-world proof. Here’s how smart businesses are using AI to rewrite the rules of customer experience:

1. Perplexity ‘Shop Like a Pro’: Intent-Based Search & Discovery

Our first case study is the AI-powered search engine Perplexity, which launched "Shop Like a Pro" in November 2024—a feature that allows users to search for products, receive tailored recommendations, and make purchases directly within the platform. It blends product discovery, smart recommendations, and a frictionless checkout into one smooth, all-in-one shopping experience.

By analyzing user queries, preferences, and behaviors, Perplexity delivers personalized product recommendations in a conversational, easy-to-digest format. Product cards display key details at a glance, giving shoppers the info they need without the hassle. And with the “Buy with Pro” feature, users can complete their purchases instantly—no more jumping between tabs or navigating a maze of websites!

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Perplexity’s ‘Shop Like a Pro’ marks a shift toward intent-based search and zero-click purchasing. Instead of requiring consumers to sift through search results and visit different retailers' sites, Perplexity refines this process, ensuring that shoppers can find and purchase a product within a single, intuitive interaction. For retailers, this raises the stakes: product data needs to be accurate, enriched, and AI-ready to meet shoppers where they are. As platforms like Perplexity blur the lines between search, recommendation, and purchase, businesses that embrace this shift will be the ones leading instead of lagging in the next era of eCommerce.

2. Sephora: Virtual Assistance & Experiences

While Perplexity is redefining how we search and shop in one seamless step, other brands are using AI in entirely different ways. Take Sephora, for example—the beauty and skincare giant has been blending AI and Augmented Reality (AR) into its shopping experience for years, offering customers innovative tools that elevate both personalization and convenience.

One of Sephora's notable innovations is the Sephora Virtual Artist, developed in collaboration with ModiFace, which allows users to virtually try on thousands of lip shades through their mobile app. By utilizing facial recognition technology, the app accurately maps facial features, enabling users to see how different products would look on them without physical application. Within two years of its launch, the Virtual Artist recorded over 200 million shade trials and attracted more than 8.5 million visits.

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Building upon this, Sephora introduced Color Match, an extension of the Virtual Artist. This feature assists customers in shade-matching by analyzing images to find corresponding lipstick colors from Sephora's extensive product range. Users can upload a photo, and the AI identifies prominent colors, providing a list of matching lipsticks that can be virtually tried on and purchased directly through the app.

The core technology behind these tools includes advanced facial recognition, which accurately tracks facial features to apply virtual makeup precisely, and AI that analyzes users' skin tones and leverages data such as customer preferences and purchase history to offer personalized product recommendations.

But Sephora didn’t stop there. They also put AI to work behind the scenes to boost SEO and customer outreach. Noticing a rise in detailed product searches, they used AI to whip up landing pages designed around queries like “best foundation for sensitive skin”, which resulted in smart, hyper-relevant content that clicked with customers - and a 6% increase in organic search visibility to prove it! 

Sephora’s AI-driven innovations show just how much tech can elevate the everyday shopping experience, making it smarter, more personal, and a lot more engaging. These tools don’t just boost convenience for customers; they also fuel stronger engagement and higher conversions for the brand.