Fashion retailer ASOS is using AI to boost revenue after sales dropped 12 percent this past year, the company shared.
The brand is testing “Styled for You,” a new AI-powered feature which delivers personalised clothing suggestions to online shoppers, The Guardian reports.
The feature operates on AI which is trained on the company’s database of 100,000 curated outfits. Trained on this data, the AI suggests products based on the shopper’s buying and search history.
The tool also creates recommendations based on style trends, and preferences shoppers include when signing up for the retailer’s app.
AI in Retail
ASOS has demonstrated commitment to integrating AI into its online platform and internally. Last year, the retailer announced a partnership with Microsoft to foster smoother business operations. The company also uses Microsoft’s Azure AI to attend to customer queries through natural language processing.
Along with the drop in sales, ASOS lost 8 percent in shares this week, failing to meet 2025-2026 profit expectations.
Its annual pre-tax sales losses amounted to £281.6 million, a reduction from last year’s losses which totalled £379.3 million.
“Our priority for 2025-2026 is to deepen our relationships with customers and make ASOS not just a place to shop, but a destination for inspiration and style.” Jose Antonio Ramos Calamonte, CEO at ASOS, said in an earnings call on Friday.
The use of AI in retail is a growing trend, as brands use the technology to improve experiences for shoppers.
US retailer Target announced a partnership with ChatGPT last week. The partnership aims to drive more personalised shopping experiences, including the creation of an AI-powered ‘Shopping Assistant’ and ‘Gift Finder,’ and the embedding of Target’s app into the ChatGPT interface.
