Asos is one of the retailers experimenting with haggle bot Nibble.(Photo Illustration by Pavlo … [+] Gonchar/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty ImagesNot happy with the deal that’s on the table? Feel you could get a retailer’s price down on a fashion haul? Then why not haggle with an AI bot?
In the latest bid to lure savvy shoppers, a futuristic new tool has been launched for a behavior as old as retail itself, bidding to get the best price and wrangle with a merchant, after a host of retailers have begun experimenting with a bot that’s empowered to bargain.
U.K.-based online fast fashion retailer Asos, which has become a machine learning advocate for its customer services, is the latest to launch an AI chatbot – called Nibble – on its ecommerce website, which allows customers to haggle over prices with the bot.
The company is initially using Nibble, from London-based Nibble Technology, for its River Island branded stock and is among 300 brands and retailers, including make-up brand Iconic London, that are using the AI-powered chatbot.
In recent press reports, some users reported that they had managed to get discounts on shopping hauls from Asos of up to 40% using the AI feature.
How The AI Bot Works
Nibble Technology says that custom-built algorithms determine bids by considering various factors such as the previous bot offer, the user’s last offer, the length of the negotiation, and other factors.
Nibble then deploys techniques based on behavioral science and negotiation theory, with tactics that recognize specific user behaviors and in turn adapt the bot’s behavior in response. Designed from the ground up specifically for negotiation, according to Nibble, the bot understands and responds to user’s offers, reasons and their own negotiation techniques.
It’s not the first time that Asos has deployed AI for customer-facing interactions and earlier this month the company signed a new three-year AI deal with Microsoft as it pushes forward with what it says is a “commitment to operational excellence, efficiency, and data-driven decision-making”.
Dubbing itself an “early technology adopter”, Asos is currently leveraging Power Automate for process automation, Teams Premium for automated meeting summaries, notes, actions, and live translations, and Microsoft Copilot to boost productivity.
Asos Backs AI Adoption
Earlier this year, the business launched customer testing for its AI Stylist, helping customers discover new looks through an easy-to-use, conversational interface, built using early access to Microsoft’s generative AI tools.
The Asos/Nordstrom store opening at The Grove in 2022 in Los Angeles, California. (Photo by Gonzalo … [+] Marroquin/Getty Images for Nordstrom)
Getty Images for NordstromAsos has also launched selected ranges on TikTok Shop as it continues to focus on platforms where its young consumer base shop.
“A core part of our business strategy is driving operational excellence within Asos: making sure we’re as fast, efficient, and effective as we can be, and investing our time and resources in the projects that matter,” Asos director of technology operations Victoria Arden said.
“Under this new agreement, we’re helping ‘Asosers’ safely experiment with generative AI tools that can remove ‘busy work’ from their day, freeing them up to unlock greater creativity and insights and focus on delighting our customers.”
Asos has pledged to continue moving forward with its turnaround plan despite losses widening in its most recent trading report in April. Shares have dipped by around 7.5% in the year to date but are down over 93% from their peaks in early 2021 when many e-commerce fashion retailers were still riding the crest of the pandemic online boom.
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