Google Cloud announced Conversational Commerce agent, a new AI-powered solution on Vertex AI that provides an advanced product discovery experience for business-to-consumer (B2C) retailers. As AI rapidly reshapes the retail landscape, this tool will offer retailers new ways to personalize experiences, streamline operations, and drive revenue.

Albertsons Cos., one of the largest food and drug retailers in the United States, is the marquee collaborator and first retailer to bring Google Cloud's Conversational Commerce agent solution to market – helping to redefine how customers discover, plan and shop for groceries. Albertsons Cos. is leveraging Conversational Commerce agent in its Ask AI tool, accessible now via the search bar in all Albertsons Cos. banner store apps, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME and Tom Thumb, to help customers build smarter, faster baskets through simplified product discovery, personalized recommendations, and more intuitive shopping experiences.

"At Albertsons Cos., we are focused on giving our customers the best experience possible for when and how they choose to shop," said Jill Pavlovich, SVP, Digital Customer Experience for Albertsons Cos. "By collaborating with Google Cloud to bring Conversational Commerce agent to market, we are providing our customers a solution that moves beyond traditional search to help them digitally shop across aisles, plan quick meal ideas, discover new products and even recommend unexpected items that pair well together. Our Ask AI tool provides personalized interaction and intuitive guidance that is transforming how our customers purchase groceries, ultimately making their experience more enjoyable and their lives a bit easier."

Conversational Commerce agent builds upon a long-standing partnership between Albertsons Cos. and Google Cloud focused on using technology to innovate within the retail sector. Designed for companies ranging from grocers to home improvement stores, and built on Vertex AI, Conversational Commerce agent is an AI-powered agent for shoppers that detects their intent and preferences, and engages in real-time, back-and-forth conversation to surface relevant results and recommendations.

This AI-powered solution is highly tuned for e-commerce and designed to replicate the personalized shopping guidance consumers find in physical stores. Key features include:

• Personalized search and discovery: With Gemini, AI personalizes the search experience, streamlining the journey from intent to purchase. By conversing with shoppers to understand their preferences and intent – such as "sweet" vs. "salty" when buying snacks, for example – it recommends relevant products and encourages customers to explore unexpected items that meet their palettes. Early results at Albertsons Cos. show that customers using Ask AI often add one or more additional items to their cart, uncovering products they might not have found otherwise.
• Natural conversations: Multi-turn conversations seamlessly adapt to customer needs, using guided prompts to help customers easily clarify and refine results. Customers feel like they are having a multi-step conversation vs. getting canned answers from a chatbot.
• Intelligent answers: Conversational Commerce agent provides real-time answers for complex questions, such as product comparisons, and asks clarifying questions for ambiguous requests to guide shoppers to more precise results.
• Safe, reliable information: Built-in content, guardrails, and feedback tools ensure shoppers receive information they can trust, with the AI models grounded in quality product data and responsible design practices.
• Drives engagement: Retailers can drive increased customer engagement, bigger baskets, and improved revenue generation using Conversational Commerce agent. When Albertsons Cos. customers interacted with the Ask AI platform, more than 85% of conversions started with open-ended or exploratory questions –demonstrating the need for personalized guidance.

"The future of retail is personal, predictive, and effortless, and AI is the key to unlocking it," said Paul Tepfenhart, global director of Retail at Google Cloud. "Albertsons has been a phenomenal partner, helping us push the boundaries of what's possible with AI. The grocer is already seeing powerful results with our new Conversational Agents for Commerce tool, and we're excited to bring this innovation to the rest of the industry."