The Problem: Imagine you go on a shopping website like Sephora or IKEA. You see “Recommended for You” products — but sometimes they feel random or boring. That’s because most companies use manual or basic logic (like “people who bought this also bought that”). But for big stores with thousands of products and millions of users, that’s hard to keep updated. And for new users, they don’t even know what to suggest!
The AI Solution: Google Cloud created an AI tool called Recommendations AI. Here’s what it does: It watches what people click, add to cart, or buy It understands each person’s behavior in real-time It can even make smart suggestions for new users using just a little info (like what page you landed on)
It keeps learning and updating every day — without needing a human to fix rules
📈 The Results: ~ Sephora got 50% more people clicking the suggestions ~ IKEA got more people buying — and their order value went up by 2% ~ Other brands like Hanes and Digitec Galaxus saw big increases in revenue from product suggestions
💡Key learning ~ AI is not just cool tech — it drives business results when applied smartly ~ “Cold start” problems (when there’s no user history) can be solved with context-based AI ~ Instead of building everything from scratch, many brands just use plug and-play AI tools (like Google’s) Personalization matters more than ever in customer experience