Retail AI — from product recommendations to dynamic pricing — mostly falls under limited or minimal risk. But transparency requirements apply to every AI chatbot, and GDPR remains the primary dual compliance concern.
Retail and e-commerce businesses are increasingly reliant on AI for personalization, pricing, fraud prevention, and customer service. While most retail AI falls under limited or minimal risk categories, the EU AI Act introduces specific transparency requirements (Article 50) that affect every AI chatbot and recommendation system. The intersection with GDPR is particularly relevant for retail, as AI-driven personalization processes significant volumes of personal data.
AI-powered product suggestions, personalization engines, and 'customers also bought' features.
AI algorithms that adjust prices based on demand, competition, customer segments, or market conditions.
AI chatbots for customer support, order tracking, returns processing, and product inquiries.
AI-based payment fraud detection, account takeover prevention, and chargeback analysis.
AI image recognition for product search, virtual try-on, and augmented reality shopping features.
AI-driven demand forecasting, stock level optimization, and supply chain planning.
Most retail AI falls under limited risk (requiring transparency) or minimal risk (voluntary codes of conduct). Chatbots must disclose that users are interacting with AI (Article 50). Recommendation engines and dynamic pricing are generally minimal risk unless they process biometric data or make decisions that significantly affect individuals. The key dual compliance area is GDPR — retailers must ensure AI personalization complies with data protection requirements, including consent, purpose limitation, and the right to object to automated profiling.
Identify all AI in customer interactions: chatbots, recommendations, pricing, and personalization. These need transparency measures first.
Ensure all AI chatbots clearly inform users they are interacting with AI. This is required under Article 50 and is already enforceable.
Audit AI personalization against GDPR requirements. Ensure proper legal basis for profiling, data minimization, and automated decision-making safeguards.
If using dynamic pricing, document how the system works, what factors influence pricing, and how you prevent discriminatory pricing practices.
Ensure staff who manage AI tools understand their capabilities, limitations, and when to escalate to human agents.
Understand Article 50 transparency obligations for chatbots, recommendations, and customer-facing AI.
Read moreAktAI helps retailers navigate AI Act transparency requirements and GDPR intersection. Start with a free assessment to understand your obligations.
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