AI-Powered Search & Personalization: Insights from Algolia

1. In what ways does combining manual curation with algorithmic ranking influence your approach to customer experience and conversion optimization?

Combining manual curation with algorithmic ranking allows us to strike a balance between creativity and scale. Manual curation allows retailers to highlight seasonal trends, sponsors, editorially chosen features, and other considerations that may not be picked up from an automated algorithm. This is a great addition to the algorithmic ranking that supports the massive scale of infinite searches and the various ways customers express their needs, whether it's finding a specific product or getting help for a unique scenario. This hybrid approach enhances the customer experience by allowing retailers to solve their customers’ needs more accurately and quickly while also reducing the operational overhead of fully manual configurations. We can leverage AI to help us interpret both user intent and business goals, leading to more efficient and effective conversion optimization.

2. How are you addressing the challenge of managing large or frequently changing catalogs, and what operational improvements could you unlock for your business? 

Large, complex catalogs are where accurate and efficient search and discovery becomes really important. The first step in managing large catalogs is making sure they are fully complete and content rich. Every product must have images, descriptions, and translations, or they simply won’t be found or purchased. Next, Algolia focuses on how we can make the catalog better. For example, we can curate and personalize it for specific audiences. This includes layering in rich content such as guides, how-tos and comparisons. Since generating this content is time-consuming and costly, we have given retailers the ability to automatically generate descriptive content using GenAI. And then lastly, make sure everything is operational. We use AI to create and rank content products, create category pages rich in content, and apply image recognition to match products beyond simple metadata. These improvements significantly boost operational efficiency while still elevating the customer experience.

3. How does the ability to personalize search results and category layouts align with your broader personalization strategy across digital touchpoints?

Personalization is most effective when every touchpoint feels relevant and intuitive to the individual, and takes into account who the customer is, their current needs, and informed by recent behavior. By tailoring search results based on behavioral signals, retailers can reduce friction and add true value to a consumer’s shopping experience. Beyond search, personalizing category layouts continues to show a deep understanding of individual preferences. For example, recognizing that one shopper’s “summer look” inspiration will likely be influencing a “back-to-school” wishlist. Beyond making a sale, this personalization builds trust and loyalty in a brand.

4. How are you currently exploring retail media as a revenue stream, and how are you enabling brand placement, sponsored content, or inventory-based monetization? 

We work closely with many customers who are investing in retail media and promote their own brands through sponsored content and strategic placements. Customers also have additional revenue streams by hosting channels. Our approach blends manual input with AI optimization. Creatively, we support the manual curation to ensure that particular sponsors or content types are featured in appropriate locations based on brand relevance. At the same time, we leverage AI within our search systems to rank and feature the most optimal products and content driven by real-time customer behavior.

5. Which departments beyond merchandising—such as content, marketing, or media—could benefit most from a no-code, AI-driven content positioning tool, and how will it shape interdepartmental collaboration?

Beyond merchandising, marketing teams would benefit significantly from the combination of creative freedom and intelligent automation, allowing them to tailor campaigns and promotions while introducing them at scale. UX and customer service teams also benefit and could learn more about the content people consume.

6. How important is it to have a unified tool that supports consistent yet localized product and content presentation?

It is incredibly important. Customers are far more likely to engage with—and ultimately purchase—products and content that feel tailored to their needs, location, and preferences. By leveraging a single platform, retailers can maintain brand integrity and quality while also delivering localized, relevant experiences.