Albertsons made a new commerce agent from Google Cloud available to its online customers, making it the first retailer to use the agentic artificial intelligence (AI) offering, the companies announced Sept 10.
The conversational AI agent, which Google Cloud created to work with Google’s Vertex AI platform, is designed for business-to-consumer (B2c) retail use cases. Among the outcomes it is meant to drive, Google cited personalization, streamlined operations and revenue.
Albertsons is No. 18 in the Top 2000, Digital Commerce 360’s database ranking of North America’s leading retailers by annual online sales. There, it falls under the Food & Beverage merchandise category. Digital Commerce 360 projects Albertsons’ online sales in 2025 will reach $7.55 billion.
Albertsons web sales by year
How Albertsons is using Google’s AI agent
Albertsons shared some early results from its Ask AI platform, which is where Google’s technology is being put to use. So far, Albertsons notes that customers using Ask AI are often adding “one or more additional items to their cart.”
Moreover, the grocer has seen customers finding products that they might not have otherwise discovered. In addition, the grocer sees increased engagement occurring. It shared that more than 85% of conversions with Ask AI began with “open-ended or exploratory questions,” which it cited as evidence that they needed personalized guidance.
“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, senior vice president for digital customer experience at Albertsons. “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.”
In the announcement, Pavlovich expressed confidence that Ask AI would increase the overall quality of customers’ experiences.
“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,” she added.
Key features for Google’s customer-facing conversational AI
Among the most prominent features Google Cloud mentioned for the retail deployment of its conversational commerce agent were:
- Personalized search and discovery
- Natural conversations
- Intelligent answers
- Safe, reliable information
- Drives engagement
The platform leverages Google’s Gemini large language model (LLM) to interpret preferences and intent from shoppers’ queries. Ultimately, Google claims these features will lead to bigger orders and more sales for retailers.
“Albertsons has been a phenomenal partner, helping us push the boundaries of what’s possible with AI,” said Paul Tepfenhart, global director of retail at Google Cloud. “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.”
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