Plan and prepare for Microsoft Cloud for Retail in 2025 release wave 1

Overview

The retail industry is undergoing significant transformations driven by advancements in Data and AI technologies. In the retail sector, predictive AI continues to be widely adopted for traditional workloads. However, generative AI is emerging as a transformative technology, enhancing customer experiences through multimodal shopping advisors, personalized product recommendations, and adaptive advertising. In line with these trends, we are doubling down on our investments in generative AI-based copilot solutions for personalized shopping and store operations.

Despite the increased adoption of AI, challenges such as data silos and concerns about data privacy and protection remain major barriers. To address these issues, teams across the retail industry are making concerted investments in security-related features. We are also enhancing our data solutions with industry-specific templates and improved data models to drive standardization and interoperability, thereby reducing adoption barriers.

 Updates to Microsoft Cloud for Retail 2025 release wave 1

Investment areas

Personalized Shopping Agent
Consumers often start shopping without a clear idea of what they want. They browse and browse without finding the right item, or feeling confident about the right choices. The advent of large language models is changing that. Now, shoppers can interact with a copilot who acts as an expert shopping assistant, helping them find and buy exactly what they want.

Personalized Shopping Agent lets any retailer add this conversational shopping experience to their website, mobile app, or in-store kiosk easily. It's a complete solution that can be deployed by retailers with limited AI expertise. It can also be the starting place for a more tailored solution. It connects to existing item catalogs and media collections and can be configured to represent each retailer’s tone and brand values.

Store Operations Agent
Retail workforce management aims to enhance store operations and improve customer experience. The features under this workstream provide store associates with insights, information and tools to manage store tasks and customer interactions more efficiently. Additionally, AI-enabled data-driven insights help store managers monitor operations, ensure compliance with HQ standards, and improve overall store efficiency. These features create a seamless and productive environment for both store employees and customers.

To learn more about the entire set of capabilities being delivered during this release wave, check out the release plan for Microsoft Cloud for Retail below: