What: The whitepaper, in partnership with Zalando, outlines how generative AI can revolutionise e-commerce through enhanced personalisation, improved product discovery, and efficient content creation, with potential to add $275 billion to fashion and luxury sectors' operating profits.

Why it is important: The comprehensive analysis offers retailers a roadmap for AI implementation at a time when early adopters are seeing 6% or higher revenue growth, helping bridge the gap between technological potential and practical application.

Zalando's whitepaper presents a comprehensive examination of how generative AI is transforming the e-commerce landscape. The technology's potential to revolutionise customer interactions is evidenced by its ability to tackle key challenges, including the fact that 74% of customers abandon purchases due to overwhelming choice. The paper outlines how gen AI can enhance various aspects of online retail, from search functionality and virtual assistants to size-and-fit tools and product imagery optimisation. Implementation requires careful consideration of organisational readiness, with emphasis on employee education and leadership buy-in. The document also addresses critical ethical considerations, highlighting the importance of maintaining human oversight and building consumer trust through transparency. Notably, the paper explores how retailers can leverage gen AI for content creation and trend identification, while emphasising the need for responsible deployment and clear frameworks for data privacy and security.

IADS Notes: Recent market research strongly validates Zalando's strategic focus on generative AI in e-commerce. As noted in March 2025, Adobe reported unprecedented growth in AI-powered shopping, confirming the whitepaper's emphasis on transforming customer experiences. This aligns with McKinsey's February 2025 findings that 71% of consumers now expect personalised interactions, with retailers achieving up to 30% improvement in operational efficiency through AI implementation. The business case for such transformation is compelling, as evidenced by Google Cloud's October 2024 survey showing 87% of AI-adopting retailers experiencing at least 6% revenue growth. Consumer readiness for this technology was already apparent in June 2024, when Coveo's study revealed 72% of shoppers expecting AI-enhanced online experiences. These findings reinforce Zalando's vision of AI as a transformative force in retail, particularly in areas such as personalised customer interactions, efficient operations, and enhanced product discovery.

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