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  1. News
  2. › AI-powered search and recommendations drive conversion gains
  3. › Jul 24, 2026
AI-powered search and recommendations drive conversion gainsFriday, July 24, 2026
  • Retail / DTC › Office Supplies, Stationery, and Gift Retailers › Gift, Novelty, and Souvenir Retailers
  • Retail / DTC › Sporting Goods, Hobby, and Musical Instrument Retailers › Hobby, Toy, and Game Retailers
LLMSearchGoogle CloudMacy's Inc.MichaelsOpenAIThe Home DepotUlta BeautyAsk Mike · michaelsGemini Enterprise for Customer Experience · google-cloudGoogle Gemini · google-cloud

Michaels' Ask Mike AI assistant doubles online conversion rates versus search

Michaels launched Ask Mike, a Google Gemini-powered AI shopping assistant that has generated 75,000 conversations since its May debut, with shoppers converting at more than double the rate of traditional search users. For commerce teams, the tool demonstrates how conversational AI can drive higher engagement and larger basket sizes by guiding customers from inspiration to multi-item purchases in a single session.

AI-generated. Summaries are AI-generated from cited sources. Click through for the original report.

Michaels announced Ask Mike, its first customer-facing AI shopping assistant, on July 21, 2026, after quietly launching the tool in May (Modern Retail). Built using Google Cloud's Gemini Enterprise for Customer Experience, Ask Mike answers shopper questions and responds to prompts such as "Help me plan my kid's birthday party" and "Kids' summer craft ideas," asking for details like project type, colors, materials, and budget (Modern Retail). The assistant has had 75,000 conversations since its quiet May launch (Modern Retail).

Shoppers engaging with Ask Mike convert at a rate more than double that of those using traditional search methods (Modern Retail), and 27% of interactions lead to a customer clicking a product link or adding to cart (Modern Retail). Unlike keyword-based search, Ask Mike enables shoppers to bundle core supplies and finishing touches in a single session—such as for parties or craft projects—whereas traditional search users typically seek individual items they already have in mind (Modern Retail). For commerce practitioners, the results signal that conversational AI can unlock higher engagement and larger basket sizes by moving customers seamlessly from inspiration to product discovery and purchase.

Michaels achieved this production-grade implementation in just six weeks, leveraging its existing Google Cloud infrastructure and AI-ready product catalog (Retail Dive - Technology). Other major retailers including Ulta Beauty, Macy's, and The Home Depot have similarly adopted Google Cloud's Gemini Enterprise for Customer Experience, positioning conversational AI as an emerging standard interface between shoppers and brands (Modern Retail).

Sources:2 reports
  • Modern Retail
  • Retail Dive - Technology
Older story ›Whatnot acquires Shaped to speed up AI-powered recommendations

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ShareLast updated: July 24, 2026