Generative AI in Retail

Retail generates more product data, customer interactions, and operational content than teams can manage manually. Generative AI in retail applies LLMs to the work that scales poorly with headcount, product descriptions, customer support, personalised recommendations, and merchandising content at catalogue scale.
We build generative AI applications for retail and ecommerce that connect to your product catalogue, customer data, and inventory systems, delivering value across customer experience, content operations, and merchandising efficiency.

See our work
  • Product description generation at catalogue scale with brand voice and SEO compliance

  • AI customer support handling returns, order status, and product FAQ without agent involvement

  • Personalised shopping experiences using customer behaviour and purchase history

  • Automated merchandising content for email, ads, and on-site promotions

Recent outcomes

AI customer support · Retail platform

Deployed conversational AI handling order status, returns, and product FAQ, reducing support contact volume by 70% without additional headcount.

70% query deflection

AI OCR pipeline · Ecommerce operations

Automated document and data processing across catalogue ingestion, eliminating manual data entry errors on 20,000+ daily transactions.

20,000+ daily transactions

B2B SaaS · Food retail platform

Built multi-platform order management system that scaled to 3x revenue with zero order errors across 16 weeks.

3x revenue, 0% errors
4.9 / 5 on ClutchSee all work

Recognition

Sound familiar?

  • Product catalogue with thousands of SKUs and inconsistent, thin product descriptions hurting conversion and SEO?

  • Customer support volume dominated by order status, returns, and product FAQ that AI could handle consistently?

In short

RaftLabs builds generative AI applications for retail: product description generation, AI customer support, and personalised shopping experiences. Projects ship in 8 to 14 weeks at a fixed price. Clients in the US, UK, and Australia. Support volume drops 40 to 60% on typical retail queues.

Trusted by

Vodafone
Nike
Microsoft
Cisco
T-Mobile
Aldi
Heineken
GE

AI development, by the numbers

AI products shipped in 24 months
20+
from kick-off to production-ready AI product
12 weeks
rated by clients on Clutch
4.9/5
years shipping software and AI products
9+

Retail's content and support problems scale with volume. Generative AI doesn't.

A team of 10 copywriters producing product descriptions can't scale when your catalogue grows by 10,000 SKUs. A support team sized for 500 contacts per day can't absorb 2,000 without proportional headcount. The operations that work at one scale break at the next.

Generative AI in retail solves the growth problem, product content, customer support, and personalised communication that grows with your catalogue and customer base without proportional cost increase.

Capabilities

What we build

Product description generation

LLM pipeline that generates brand-consistent, SEO-optimised product descriptions from your structured product data (attributes, specifications, dimensions, material) and product images. Model selection: GPT-4o with vision for product categories where image analysis adds context (fashion, homewares, food, the model describes colour, texture, and style details it can see); GPT-4o text for attribute-heavy categories (electronics, hardware) where the specifications carry the content. Brand voice system prompt encoding your tone guidelines, banned words, reading level target, and example descriptions from your best-performing existing copy, so every generated description matches your voice without post-editing. Output structured per your template: SEO-optimised title tag (under 60 characters), H1 heading, feature bullet points (5–7 items with benefit-first framing), and long-form description paragraph (150–200 words). Shopify Product API or Magento REST API integration to write approved descriptions directly back to the catalogue without copy-paste workflow. Batch generation via the OpenAI Batch API: submitting 1,000 SKUs overnight at 50% lower token cost than synchronous generation. Quality gate: a lightweight scoring prompt evaluates each output for completeness (did it reference the key attributes?), brand voice match, and factual accuracy against the input attributes before publishing. Descriptions that fail the quality gate route to human review rather than auto-publishing. Content production that took 15–20 minutes per SKU manually completed in under 30 seconds per SKU at scale.

AI customer support

AI customer support system handling the high-volume, predictable retail support queue, the queries that account for 60-75% of ticket volume but require no judgment to answer correctly: order status, shipment tracking, return initiation, refund status, product FAQ, and account changes. Technical architecture: a retrieval-augmented LLM with RAG grounding over your product catalogue, support knowledge base, and policy documents, ensuring the AI answers from your actual policies rather than hallucinating return windows or shipping costs it doesn't know. Live order data integration: OMS API (Shopify Admin API, Magento Order Management, or custom) queried in real time so the AI answers "where is my order?" with the current tracking status and estimated delivery, not a generic placeholder. Return initiation flow: AI collects order number, item, and return reason, validates against your return eligibility rules, generates the return label or return instructions, and updates the OMS, completing the return without agent involvement. Zendesk, Freshdesk, or Intercom integration for handoff: when the AI cannot resolve a query confidently (complaint, complex situation, sentiment below a configurable threshold), it escalates to a human agent ticket with the full conversation context and the customer's order history pre-populated. Scope guardrails prevent the AI from answering questions outside its designated domain (it won't give style advice or make promises beyond stated policy). Support contact volume reduction of 40–60% on standard retail support queues benchmarked across deployments.

Personalised shopping experience

Personalised product recommendations and shopping experiences built on your customer behavioural data, purchase history, and catalogue, beyond the generic "customers also bought" widgets that every ecommerce platform provides. Recommendation engine architecture: collaborative filtering for "users like you bought" signals combined with content-based filtering from product embeddings (product descriptions and attributes embedded with text-embedding-3-small and stored in pgvector or Pinecone) for cold-start coverage on new customers who have no purchase history. Recommendation contexts: homepage "recommended for you" (driven by recent browse and purchase history), product detail page "complete the look" or "frequently bought together" (item-to-item collaborative filtering), post-purchase email "you might also need" (complementary category recommendations). LLM-powered natural language search: customer types "something to wear to a summer wedding under £150", the query is embedded and matched to product embeddings, re-ranked by price filter and stock availability, with an LLM generating a short explanation of why each result matches the query. Shopify Storefront API or Magento GraphQL integration for real-time inventory-aware recommendations that don't surface out-of-stock items. Diversity controls preventing the recommendation widget from showing only one brand or category, ensuring varied options that reflect the full catalogue. Personalised promotional email recommendation blocks generated per subscriber segment from Klaviyo or Braze segment data, improving email click-through rates by 20–35% compared to static category promotions.

Merchandising content automation

Automated merchandising content production for email campaigns, promotional banners, social ad creative, and on-site landing pages, generated from your product data, pricing, campaign brief, and brand guidelines without the per-piece manual production cost. Generation pipeline: a campaign template system where the merchandising team inputs the campaign parameters (offer, featured products, target segment, promotional window) and the LLM generates headline variants, body copy variants, and call-to-action variants for each surface (email subject line, email body, social ad primary text, social ad headline, on-site banner text). A/B variant generation built into the pipeline: for each campaign, 3–5 subject line variants generated and deployed as a split test, with the winner selected by open rate after 4 hours and auto-promoted to remaining sends. Seasonal and trigger-based content automation: the system generates and schedules promotional content for sale events (Black Friday, seasonal clearances) from a campaign brief rather than requiring manual copy production per sale. Klaviyo or Braze API integration for direct email content publishing; Meta Marketing API for social ad creative delivery. Content brief-to-first-draft time reduced from 3–5 hours of copywriting to under 10 minutes of review and refinement, enabling content teams to run more campaigns at the same headcount or redeploy copywriting capacity to higher-value strategic work.

Search and discovery

AI search that understands customer intent beyond exact keyword match, converting natural language queries like "comfortable work shoes for standing all day under £80" or "gift for a 5-year-old who likes dinosaurs" into relevant catalogue results that keyword search would miss entirely. Search architecture combining two retrieval methods for best results: BM25 lexical search for exact attribute matches (size, colour, brand, SKU) merged with semantic vector search (product embeddings via text-embedding-3-small stored in pgvector) using Reciprocal Rank Fusion to blend both result sets before re-ranking. Hybrid approach outperforms either method alone, lexical search handles specific product lookups, semantic search handles conceptual and descriptive queries. Synonym expansion handled by the LLM at query time: "navy" maps to blue tones, "toddler" maps to size 2T--4T, "formal" maps to the suit and dress categories. Zero-results handling: when no results meet the confidence threshold, the AI suggests the closest matching category or related products and logs the failed query as a demand signal for merchandising review. Search personalisation re-ranks results using the logged-in customer's category affinity and price range from purchase history. Algolia or Elasticsearch as the underlying search engine with the AI layer handling query understanding and result re-ranking, rather than replacing battle-tested search infrastructure. Add-to-cart rate from search typically improves 15–25% compared to keyword-only search.

Inventory and merchandising intelligence

AI analysis pipeline that converts your sales history, inventory levels, and market signals into actionable merchandising decisions, delivered as natural language summaries the buying team can act on rather than dashboards requiring interpretation. Demand forecasting component: a Prophet or LightGBM time-series model trained on your 2–3 year sales history by SKU and category, incorporating seasonality (weekly, annual, promotional calendar), weather data for weather-sensitive categories, and Google Trends signals for trend-sensitive categories. Output: 4–8 week forward demand forecast per SKU used to generate automated replenishment alerts before stockouts occur rather than after they affect conversion. Markdown timing recommendations: stock-turn analysis per SKU identifying items holding markdown risk (slow velocity, approaching end of season, age threshold) with a suggested markdown percentage calibrated to clear remaining inventory by the end of the promotional window without unnecessary margin sacrifice. Assortment gap identification: comparison of your category distribution against basket association patterns, identifying which complementary products your customers are buying from competitors because they're missing from your catalogue. Weekly merchandising brief generated as a natural language summary (by an LLM synthesising the quantitative outputs): top 5 replenishment needs, top 3 markdown candidates with rationale, and top 2 assortment gaps, formatted as a Monday morning briefing the buying team actually reads rather than another dashboard they need to log into.

How we work

From scope to shipped

Every project follows the same four phases. Scope is locked and price is fixed before development starts.

  1. Week 1
    01

    Discovery and scope

    We map the retail workflow, the data systems, and the integration points. You leave week 1 with a written scope document and a fixed-price quote covering every integration and delivery. No development starts without your sign-off.

  2. Weeks 2-3
    02

    Design and architecture

    Data pipeline design, LLM prompt architecture, and integration contracts before any production code. Design decisions made here cost ten times less than the same decisions made in week 8.

  3. Weeks 4-12
    03

    Build, integrate, and QA

    Working software at a staging URL by the end of sprint one. Bi-weekly demos with your team. QA runs in parallel with every sprint, not as a phase at the end. OMS, catalogue, and platform integrations tested against real data.

  4. Weeks 12+
    04

    Launch and post-launch support

    Production deployment with monitoring activated on launch day. 8 weeks of post-launch support included in every project. Performance metrics tracked from day one.

Why us

Why retail teams choose RaftLabs

  1. Senior engineers build what they scope

    The engineers who assess your retail AI problem also build the solution. No bait-and-switch, no offshore handoff after the contract is signed. The team you meet in week 1 ships in week 12.

  2. Fixed price before development starts

    We scope the work, calculate the cost, and lock it in writing before any development starts. A scope change is a change request: priced, agreed, or dropped. It never absorbs into the project and appears on the final invoice.

  3. 9 years and 100+ products shipped

    Clients include Vodafone, T-Mobile, Aldi, Nike, Cisco, and Lockheed Martin. Track record across AI, SaaS, mobile, automation, and enterprise platforms across retail, ecommerce, fintech, and logistics.

  4. Compliance built in from the start

    GDPR, HIPAA, PCI-DSS — compliance requirements are scoped in week 1, not retrofitted before launch. We have shipped GDPR-compliant products for European retail clients and PCI-DSS-aware payment integrations for US ecommerce platforms.

Ready to scope your retail AI project?

30 minutes. You walk away with a clear cost, timeline, and team. No commitment.

Frequently asked questions

The highest-ROI applications in retail are: (1) Product description generation, retailers with thousands of SKUs and thin or inconsistent product descriptions can generate brand-consistent, SEO-optimised descriptions at scale. Content production cost drops 80–90%; time to publish new SKUs drops from days to hours. (2) Customer support deflection, order status, return and refund requests, and product FAQ are consistent, high-volume, low-complexity queries that AI handles accurately without agent involvement. Support cost per contact drops significantly. (3) Personalised email and promotion copy, LLMs generate personalised product recommendations and promotional messaging based on customer segments and purchase history. These three have the clearest ROI measurement and the shortest path to production.

We build a pipeline that takes your product data (attributes, specifications, category, images) and generates brand-consistent product descriptions using LLMs with your brand voice guidelines built into the system prompt. For image-based products (fashion, homewares, food), we use multimodal models that analyse product images as part of the generation context. Output goes through quality review before publishing, human review for new categories, automated publishing for high-confidence outputs in established categories. Generated descriptions can include SEO-optimised headings, bullet points, and feature callouts matching your template structure.

AI retail customer support handles the high-volume, predictable queries: order status (connected to your OMS), return initiation (connected to your returns workflow), product FAQ (sourced from your product data and support knowledge base), and account management. The AI handles what it can confidently answer within your defined scope; complex queries, complaints, and situations outside the defined scope route to human agents with context. Integration with your ecommerce platform (Shopify, Magento, or custom) and order management system is required. The AI layer reduces support contact volume by 40–60% on typical retail support queues.

A product description generation pipeline with brand voice controls and quality review workflow typically runs $20,000 to $50,000. An AI customer support system handling order status, returns, and FAQ with OMS integration typically runs $30,000 to $70,000. A full retail AI platform with product content, customer support, and personalised recommendations typically runs $60,000 to $130,000. Cost depends on catalogue size, integration complexity, and workflows in scope. We scope every project before pricing it.

Most retail AI projects ship in 8 to 14 weeks from kick-off. A product description generation pipeline with quality review takes 6 to 10 weeks. An AI customer support system with OMS integration takes 10 to 14 weeks. A full retail AI platform combining content, support, and personalisation typically runs 14 to 20 weeks. We lock scope and price in week 1 before any development starts.

We integrate with Shopify (Storefront API, Admin API, Product API), Magento (REST API, GraphQL), WooCommerce, and custom ecommerce platforms via REST or GraphQL. For order management, we integrate with OMS systems via API. For email, we connect to Klaviyo, Braze, and Mailchimp. The integration layer is scoped in week 1 as part of the fixed-price quote.

Work with us

Tell us what you need. We'll tell you what it would take.

We scope Generative AI in Retail in 30 minutes. You walk away with a clear cost, timeline, and approach. No commitment required.

  • Scope and cost agreed before work starts. No surprises. No obligation.
  • Working prototype within 3 weeks of kickoff.
  • Pay by milestone. You see progress before each invoice.
  • 60-day post-launch warranty. Bug fixes, UI tweaks, and deployment support. No retainer.
  • All conversations are NDA-protected.