AI Revolutionizes Retail with 95% Drop in Failed Searches and Boosts Revenue by 5.5%

July 9, 2025
AI Revolutionizes Retail with 95% Drop in Failed Searches and Boosts Revenue by 5.5%
  • A recent partnership highlights how AI can revolutionize retail by enhancing product discovery, understanding customer needs quickly, and building trust and loyalty.

  • This AI deployment led to a 5.5% increase in search-based revenue, a 10% boost in click-through rates, and a dramatic 95% reduction in failed searches, with no-result queries dropping from 2% to just 0.1%.

  • The AI system was specifically designed to interpret complex trade-specific slang and synonyms, significantly reducing irrelevant search results and manual workaround efforts.

  • Rob Contreras, Head of Innovation at Toolstation, emphasized that understanding customer intent through AI helps deliver a knowledgeable, responsive digital experience similar to in-store staff.

  • Toolstation integrated Google Cloud’s AI across its website, app, contact center, and in-store tills, creating a unified, intelligent platform that enhances product discovery, recommendations, and personalization.

  • Google Cloud highlighted that deep understanding of customer language and intent through Vertex AI Search for Commerce drives better customer journeys, increased loyalty, and business growth.

  • The AI solution, supported by Gemini models, achieved a 95% reduction in failed searches and a significant decrease in no-result queries, improving the overall customer search experience.

  • This AI-powered platform immediately improved the customer journey by making searches more accurate and responsive, thereby strengthening trust and loyalty.

  • The success of this AI deployment aligns with broader digital transformation initiatives and is set to be recognized at the upcoming RTIH AI in Retail Awards.

  • As a result of these improvements, search-based revenue increased by 5.5%, and customer loyalty saw a 2% rise, with fewer reports of irrelevant search results.

  • The collaboration aimed to create a more knowledgeable digital storefront that matches the expertise of in-store staff, addressing industry challenges related to complex language interpretation.

Summary based on 4 sources


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