Blue Bungalow transforms online shopping with AI-powered personal assistant

Blue Bungalow, a leading Australian fashion retailer, sought to enhance its online shopping experience by introducing personalized product recommendations, accurate sizing advice, and intuitive product search. Preezie, a technology partner, designed an AI-powered shopping assistant leveraging Microsoft Azure, Azure OpenAI, Semantic Kernel and Elasticsearch. The conversational assistant enables natural language queries, product recommendations, and provides direct product comparisons, closely mimicking in-store shopping support online. Semantic Kernel plays a central role, interpreting user intent and context to deliver precise search results and tailored alternatives. The assistant helps shoppers find similar products, suggests substitutes if items are unavailable, and integrates image recognition for visually matched recommendations. Product comparison tools offer side-by-side views of features, customer reviews, and pricing, empowering shoppers to make faster, more confident purchase decisions. This implementation reduced the burden on human support agents by instantly handling routine queries and requests, unlocking more value from large product catalogs. Significant impact was observed: customers interacting with the assistant spent double the time on site, had a 40% higher add-to-cart rate, conversion rates ranging from 85% to 110% higher, and a 7% increase in average order value.