The Digital Shelf Just Shrunk to Three Products. Will Yours Make the Cut?

Episode Summary

Anna Luo, Chief Marketing & Customer Innovation Officer at DaVinci Commerce, introduces AI Commerce Innovators, the new AI Realized special series on agentic commerce that she hosts, and explains why she created it. She says personal AI agents can get to know a shopper over time and, once given permission, act on that shopper’s behalf, and she calls agentic commerce a fundamental change in commerce itself. She explains why the series starts with discoverability: where the digital shelf showed hundreds of products, an AI agent recommends two or three, and context is what gets a product there. She says agentic recommendations go down to the product SKU level, describes a way to bring product reviews and social conversations into a persistent knowledge graph, says the goal is humans in the critical loops rather than every loop, and lists the questions she hopes brands will be asking a year from now, including how sales lift is measured.

Key takeaways

  • Ask what a personal agent is allowed to do and who is responsible when something goes wrong. Anna Luo says the questions become privacy, authority, security, alignment and accountability, including whether an agent is really acting in the shopper’s interest, and that the series will take these up with experts

  • Plan for agentic commerce as a change in commerce itself. She says AI can interpret intent, make recommendations and increasingly take actions on people’s behalf, so the mistake would be to treat it as simply another channel

  • Put humans in the critical loops rather than every loop. She says humans in every loop would defeat much of the value of the automation, and that the goal is humans in the loops that could change the course of judgment, ethics, brand decisions, risk or accountability

  • Aim for your product being recommended, beyond your brand being mentioned. She says that before an agent can buy for a shopper, a product first has to be discovered, and that in agentic commerce what you want to see is your product being recommended

  • Compete to be one of the two or three products an AI agent recommends. She says the shift is from hundreds of products shown on the digital shelf to two or three recommended, and that context is what gets a product there

  • Expect AI agents to recommend at the SKU level, beyond the category. She says recommendations go down to the product SKU level, and that a product detail page lists attributes that are fairly narrow and would not accommodate every question someone could ask, such as whether a foundation looks orange and cakey after a hot day

  • Where you can, look beyond the product description to signals such as reviews and social conversations. She describes ingesting how people use a product into a context memory, a persistent knowledge graph that can serve the response to the exact question asked and surface the product

  • Move from asking about AI strategy to asking how discoverability is attributed. She hopes brands will ask whether their products are discoverable, how to move from discovery to recommendation to sales lift, and how that sales lift is measured

  • Experiment now rather than waiting for everything to become obvious. Among the questions she hopes brands ask is how to experiment now, because by the time everything is obvious it might be too late

About Anna Luo

Anna Luo is Chief Marketing & Customer Innovation Officer at DaVinci Commerce, formerly Jivox, and the host of AI Commerce Innovators, the AI Realized special series on agentic commerce, whose first episode is AI Commerce Innovators Ep. 1: Nobody’s Browsing Anymore. She has spent more than two decades building new technology for enterprise customers, from real-time data platforms to one-to-one personalization at scale, and the last 10 years at DaVinci Commerce, where she leads an AI-powered growth team and works with brands to pilot agentic commerce. She is a member of the AI Realized leadership team.

In this episode

00:00 Welcome and the AI Commerce Innovators series
01:23 From AI assistants to agents that act
02:10 What makes a personal AI agent different
04:19 Privacy, authority, security, alignment and accountability
05:06 The opportunity: from search to expressing intent
06:39 A fundamental change in commerce itself
07:24 Who listeners will hear from in the series
08:39 Bring your questions and join the conversation
10:03 Humans in the critical loops
11:06 Why the series starts with discoverability
11:55 From hundreds of products to two or three recommendations
13:47 Down to the product SKU level
14:30 Reviews, social conversations and a context memory
16:10 The questions brands should be asking a year from now
17:00 Where to automate, and why to experiment now
17:41 Where to follow AI Commerce Innovators
18:55 Curiosity with judgment
19:14 Stay accountable for the decisions

In her words

“It isn’t adding AI to commerce. It is a fundamental change in commerce itself.”

Anna Luo

“AI can dramatically expand what people are capable of doing, but we shouldn’t outsource judgment to autonomous AI just because we can.”

Anna Luo

“Curiosity keeps us exploring, and I think judgment keeps us from blindly following technology.”

Anna Luo

“Use all the intelligence available to you, but stay accountable for the decisions.”

Anna Luo

Resources

The guest

  • Anna Luo on LinkedIn: Host of AI Commerce Innovators and Chief Marketing & Customer Innovation Officer at DaVinci Commerce

  • DaVinci Commerce: The company where Anna Luo is Chief Marketing & Customer Innovation Officer and works with brands to pilot agentic commerce, and the sponsor of AI Commerce Innovators

  • DaVinci Commerce on YouTube: Where AI Commerce Innovators episodes are published as video

Ideas and terms discussed

  • Agentic commerce: Commerce in which AI can interpret a shopper’s intent, make recommendations and increasingly take actions on the shopper’s behalf

  • Humans in the critical loops: Anna Luo’s goal for automation: humans in the loops that could change the course of judgment, ethics, brand decisions, risk or accountability, rather than in every loop

  • Context memory: A persistent knowledge graph built from product data, reviews and social conversations, which Anna Luo describes as serving the response to the exact question a shopper asks

Related AI Realized episodes and events

Frequently Asked Questions

What is agentic commerce?

Agentic commerce is commerce in which AI can interpret a shopper’s intent, make recommendations and increasingly take actions on the shopper’s behalf. Anna Luo, Chief Marketing & Customer Innovation Officer at DaVinci Commerce and host of AI Commerce Innovators, says the mistake would be to think of it as simply another channel. In her words: “It isn’t adding AI to commerce. It is a fundamental change in commerce itself.”

How is a personal AI agent different from a shopping assistant?

A personal AI agent differs from a shopping assistant because it can get to know a person over time. Anna Luo of DaVinci Commerce says such an agent may know someone’s preferences, past purchases, accounts, loyalty programs, calendar and schedule, and potentially even health and financial information, depending on how much they are willing to share. Once given permission to act on someone’s behalf, she says, it is no longer just helping them find things.

What questions do personal AI shopping agents raise?

Personal AI shopping agents raise questions of privacy, authority, security, alignment and accountability, according to Anna Luo of DaVinci Commerce. She asks what the agent is actually allowed to do, whether its decisions can be manipulated, whether it is really acting in the shopper’s interest, and who is responsible when something goes wrong. She says the AI Commerce Innovators series will take these questions up with experts.

Should humans be in every loop when AI agents automate work?

Humans should be in the critical loops rather than every loop when AI agents automate work, according to Anna Luo of DaVinci Commerce, because humans in every loop would defeat much of the value of the automation. She says the goal is humans in the loops that could change the course of judgment, ethics, brand decisions, risk or accountability. In her words: “AI can dramatically expand what people are capable of doing, but we shouldn’t outsource judgment to autonomous AI just because we can.”

Why does product discoverability matter in agentic commerce?

Product discoverability matters in agentic commerce because before an AI agent can buy for a shopper, the product first has to be discovered, and what a brand wants to see is its product being recommended. Anna Luo of DaVinci Commerce says that in digital commerce the goal was visibility on the digital shelf, where hundreds of products are shown, while in agentic commerce an agent recommends two or three. Everybody is competing for those recommendations, she says, and context is what gets a product there.

How can brands get their products recommended by AI agents?

Brands can get their products recommended by AI agents by giving them product information, down to the SKU level, that goes beyond the attributes on a product detail page, according to Anna Luo of DaVinci Commerce. She says product detail page attributes are fairly narrow and would not accommodate every question a shopper could ask, such as whether a foundation will look orange and cakey after a hot day. Where there is a way to look at product reviews and social conversations to see how people use a product, she describes ingesting that into a context memory, a persistent knowledge graph that can serve the response to the exact question asked and surface the product.

What questions should brands ask about AI and commerce?

Brands should ask whether their products are discoverable and how that discoverability can be attributed, according to Anna Luo of DaVinci Commerce, who hopes brands move beyond asking “What is our AI strategy?” She hopes they will also ask how to make product data understandable and readable by personal AI agents and retail shopping agents, how to move from discovery to recommendation to sales lift, and how sales lift is measured. She adds the questions of where to automate, where humans should remain accountable, and how to experiment now rather than waiting for everything to become obvious, because by then it might be too late.

What is the AI Commerce Innovators podcast?

AI Commerce Innovators is a special series on the AI Realized Podcast about agentic commerce, hosted by Anna Luo of DaVinci Commerce. Its first episode featured Emily Pfeiffer of Forrester, Chip Knicker of Accenture and Diaz Nesamoney of DaVinci Commerce, the series sponsor. Anna says listeners will hear from practitioners, brands, retailers, direct-to-consumer companies, thought leaders, innovators and analysts, and she invites them to bring their questions and join the conversation.

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