Dive Brief:
- Wayfair is turning to AI-generated images of home interiors to inspire customers and connect them to shoppable product suggestions, the company announced Tuesday.
- Through the generative AI tool, dubbed Muse, users can browse AI images or enter search terms like “retro game room” or “cozy office for a creative.” Each photo, or Muse, includes an "Explore this Muse" button, which populates links to products Wayfair sells.
- “By offering a better discovery experience on Wayfair and expanding further up the funnel, we create a more engaging and personalized end-to-end shopping experience,” Shrenik Sadalgi, director of research and development at Wayfair, said in emailed comments to Retail Dive. “Our goal with Muse is to help customers spark inspiration and go from an abstract or unknown idea to something more tangible.”
Dive Insight:
Wayfair is leveraging generative AI to elevate its search experience, according to Fiona Tan, Wayfair’s chief technology officer. Muse builds on Decorify, Wayfair’s product visualization tool that uses AI to allow users to upload a room photo and receive style suggestions to shop from.
Decorify, which debuted in 2023, has curated over 175,000 designs since it launched, according to Sadalgi.
There’s a clear demand for do-it-yourself home personalization, ideation and design, Sadalgi said. "Our focus lies at the intersection of discovery, creation and curation of ideas for your home — helping customers start that journey.”
Muse is another example of leveraging generative AI to solve customer problems and generate value, according to Sadalgi.
“People find inspiration on platforms that aren’t dedicated to or weren’t built specifically with the home space in mind," Sadalgi said. "We think harnessing the power of AI, along with limitless ideation and offering it to customers via a compelling and simple UX, with a focus on home, is a value creation opportunity.”
Beyond the Muse tool, Sadalgi also said Wayfair is applying AI across the company in enhanced search results, custom product visuals and personalization.
Companies like Poshmark, Walmart and Nordstrom have turned to generative AI to streamline operations for customers. Over half (58%) of respondents to an Adobe survey conducted last year said that generative AI has already improved their online shopping experience.
As Wayfair works to find new ways to engage customers, its financial outlook remains uncertain as the home category sees less demand from consumers. The company's net revenue fell 2% year over year during its third quarter, though its losses narrowed.
In recent years, Wayfair has turned to layoffs across returns, international operations and its corporate workforce. Wayfair laid off 1,650 employees in early 2024, its third round of layoffs in 18 months. The restructuring affected 13% of the company’s global workforce and 19% of its corporate team.
