AI advances retail through virtual try-on and digital customer twins

Artificial intelligence is transforming e-commerce through advanced virtual try-on (VTO) technologies and digital customer twins. Generative AI is shifting VTO from experimental features to robust business tools by using standard product images to create realistic digital twins, rather than relying on complex 3D models. This advancement utilizes computer vision and real-time rendering to improve fit accuracy, which helps address high return rates; for instance, the National Retail Federation reported that approximately 19 percent of fashion items purchased online in the US were returned in 2025.

Complementing this, the concept of the ‘digital customer twin’ allows companies to move beyond retrospective data. While many marketing executives believe they know their customers, a PwC study indicates that only 28 percent trust their data basis. Digital twins use AI to simulate buyer behavior in real-time, translating data streams into actionable insights regarding cross-selling, upselling, and price sensitivity. Companies such as ASOS, Breuninger, and Maybelline are already integrating these types of technologies into the customer journey to drive growth and reduce uncertainty.