Artificial intelligence is reshaping retail operations behind the scenes, with Macy’s adopting an 'AI-first' approach to redesign how decisions are made. Senior director of engineering Murali Murugan explained that this strategy focuses on integrating intelligence into systems like personalization, search, and software development to enable faster business operations and more relevant customer experiences. The shift aims to compress the gap between data signals and actionable outcomes, as Murugan described it. This approach is part of a broader industry trend toward integrated AI systems rather than isolated pilots.
Macy’s began with high-impact use cases such as search recommendations and customer engagement, where measurable gains in conversion and reduced friction quickly built internal support for scaling AI initiatives. Once quick wins were established, scaling became a business decision rather than a technological debate, according to Murugan. The company is now extending this momentum into conversational commerce through tools like Ask Macy’s, an AI-powered assistant that offers curated recommendations based on customer preferences and past behavior.
The long-term vision is retail that feels seamless and personalized, with AI acting as an invisible layer that supports, rather than replaces, human judgment. Murugan emphasized that the real transformation comes from continuous improvement, learning from mistakes, and adapting to new technology standards to enhance the customer experience.
Source: mittr
