Macy's Adopts AI-First Retail Strategy, Expanding 1 Shopping Assistant Across Core Systems
Updated
Updated · MIT Technology Review · Jun 25
Macy's Adopts AI-First Retail Strategy, Expanding 1 Shopping Assistant Across Core Systems
3 articles · Updated · MIT Technology Review · Jun 25
Summary
Macy's is shifting from isolated AI pilots to an "AI-first" operating model that embeds intelligence into personalization, search, operational planning and software development.
Early use cases in search recommendations and customer engagement delivered measurable conversion gains and less friction, helping turn broader AI deployment from a technology debate into a business decision.
Ask Macy's now extends that push into conversational commerce, letting shoppers describe needs for occasions like prom or travel and receive recommendations shaped by past purchases, preferences and context.
Murali Murugan, Macy's senior director of engineering, said the goal is not to replace human judgment but to compress the gap between signal and action so retail becomes more seamless, adaptive and personalized.
After a decade of declining sales, Macy's made a strategic comeback by launching its conversational AI assistant, 'Ask Macy's,' in March 2026. Instead of chasing every new trend, Macy's focused on proven technology that could deliver real results. This practical approach paid off quickly, as the AI chatbot engaged customers and led to a significant increase in online spending—customers spent 4.75 times more online after its launch. Macy's success shows how adopting the right technology at the right time can revitalize a business and drive immediate, measurable impact.