GenAI’s Retail Revolution Expands to B2B Marketplaces

Artificial intelligence’s business utility is no longer the realm of futuristic speculation, particularly across online retail.

“AI has moved from being a hypothetical idea to solving pragmatic problems,” Alex Hase, general manager of the Americas at Mirakl, told PYMNTS during a discussion for the series “When Chatbots Go Shopping: How GenAI Is Shaking Up the Retail Status Quo.”

AI’s technological innovations are having a right-now impact across retail by transforming marketplace platforms and creating value for retailers, brands and consumers, he said.

The role of AI within online marketplace technology is particularly transformative, helping enable platforms to operate more efficiently than legacy methods, enhance user experiences relative to peers and unlock new revenue streams.

“We use market-leading algorithms and layer them with proprietary work to optimize performance and cost,” Hase said. “Our goal is to drive the best outputs with the smallest model possible.”

Large language models, or what some now call efficient language models, are increasingly having a transformative effect across retail software workflows and reflect a broader industry trend toward optimizing AI tools for maximum impact with minimal resource consumption, he said.

Within online marketplaces specifically, AI can help serve as the backbone for optimizing various facets of key operations, empowering buyers and sellers while driving scalability and innovation.

“This shift is driven by strategy and competitive necessity,” Hase said. “Verticalized retailers have recognized marketplaces as a growth vector and a way to stay competitive in a challenging retail landscape. It’s no longer just about selling everything; it’s about defining a strategy that aligns with their brand and consumer base.”

The Marketplace Model as a Catalyst for Growth

Hase pointed out that Mirakl has been a pioneer in enterprise marketplace software, enabling businesses across B2B and B2C sectors to extend their eCommerce capabilities. While Amazon may dominate the space, Mirakl empowers traditional retailers like Macy’s and Nordstrom to expand their offerings by integrating third-party sellers.

The benefits of this model are manifold. For retailers, it allows for a broader product assortment, including adjacent categories.

“It’s all about delivering value to the consumer,” Hase said, adding this model enhances the shopping experience while maintaining a curated selection that aligns with the retailer’s brand promise.

For sellers, it provides access to new channels and consumers.

“Mirakl sits in the middle of this ecosystem, enabling traditional eCommerce to evolve into a platform business model,” Hase said.

Discussing AI applications within the Mirakl ecosystem, he said a prime example is the company’s Catalog Transformer solution, which uses AI to streamline the ingestion of product catalogs. Traditionally, this process could take up to 15 days and often resulted in data errors.

“We’ve used AI to cut that process down to as quick as one day while significantly improving data quality,” Hase said.

This improvement has tangible benefits, including reduced return rates and enhanced marketing efficiency.

“Data quality is crucial,” he said. “Inaccurate product descriptions can lead to high return rates, which are costly for retailers. Better data also improves search engine optimization (SEO), ensuring products are more easily found. The faster and more accurately we can help brands translate their catalog into a retailer’s taxonomy, the better it is for everyone involved.”

Revolutionizing Retail Media With AI

AI’s impact extends beyond catalog management. Mirakl has invested heavily in retail media, introducing the Mirakl Ads product.

“We’ve automated the traditionally manual process of running ad campaigns,” Hase said.

Tasks like product selection, keyword identification and campaign setup, which once required days of coordination, can now be accomplished in a few clicks.

This automation democratizes access to ad inventory, allowing smaller brands and sellers to participate in retail media.

“Our platform enables sellers not only to list their products but also to make ad buys and run campaigns seamlessly,” Hase said.

The result is greater efficiency and enhanced relevancy, as AI ensures ad placements align with consumer behaviors and seller priorities.

“We’ve made it possible for campaigns to be set up in minutes, not days, making ad inventory accessible to a wider range of sellers,” he said.

Looking ahead, Hase highlighted the potential of agentic AI to redefine online marketplaces. By automating complex decision-making processes, this next-generation AI could further streamline operations and enhance the shopping experience. However, he cautioned against over-automation, emphasizing the enduring value of human choice and discovery in retail.

“There’s an element of exploration and choice in shopping that AI can’t fully replicate,” he said.

While AI may excel in optimizing price-driven, mundane purchases, the entertainment and discovery aspects of shopping remain irreplaceable.

“People want to explore, to discover something new,” Hase said. “That’s an experience AI can’t fully deliver.”

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