New AI Shopping Assistant is So Good

In this blog, I sit down with Michael Tutek, CEO of Preezi.com, to explore how their groundbreaking AI shopping assistant is transforming the e-commerce landscape. Michael shares the journey of building this innovative tool, the challenges they’ve overcome, and what the future holds for AI in online shopping. You’ll gain a deeper understanding of how AI is reshaping customer experiences and driving smarter solutions for retailers. Whether you’re an e-commerce enthusiast, a business owner, or simply curious about AI, this interview has something for everyone.

What I Learned

• The story behind Preezi.com and its evolution from e-commerce quizzes to AI solutions.
• Insights into the AI shopping assistant’s features, including personalisation and styling advice.
• How Microsoft supported Preezi’s development and the role of collaboration in innovation.
• The impact of AI on traditional search functionality and future trends in e-commerce.

Transcript

Interview with Michael Tutek, CEO of Preezi.com

Opening Remarks

Jim:
Hey, welcome back, Rankers! How are you doing? Bit of a change of pace this week. I had the opportunity to interview Michael Tutek, the CEO of Preezi.com, a local company making waves with an AI shopping assistant. It’s a significant innovation in e-commerce, and I’m excited to share our conversation with you. As always, remember to like, share, and subscribe. Let’s dive in!

What is Preezi.com?

Jim:
Michael, can you start by telling us about Preezi? Did I get the pronunciation right?

Michael Tutek:
Yes, it’s Preezi.com. We’ve been around for about five years. Initially, we focused on e-commerce quizzes designed to bring in-store shopping experiences online. The idea came from my time working in retail sales, where I noticed people valued advice from sales staff to make decisions—even when they thought they knew what they wanted. This inspired me to create tools that replicate that personalized interaction online.

Over time, we expanded into post-checkout solutions like loyalty programs. These remain a significant part of our business and revenue.

Pivoting to AI: The Birth of the Shopping Assistant

Jim:
So how did you make the jump from e-commerce quizzes to an AI shopping assistant?

Michael Tutek:
About a year ago, my co-founder, head of tech, and I sat down to evaluate our next steps. While e-commerce quizzes were impactful, the space is niche—only about 1% of Shopify brands actively use them. We wanted something broader and more scalable.

Around that time, Microsoft invited us to their Retail Innovation Hub in Sydney, where they showcased generative AI applications. Seeing the potential, we proposed building an AI shopping assistant that could handle product recommendations, styling advice, and more. Their response was a resounding “Yes.” By March, we started familiarizing ourselves with the technology, and by April, we were building the assistant.

Features and Benefits of the AI Shopping Assistant

Jim:
What exactly does the assistant do?

Michael Tutek:
Think of it as an in-store salesperson brought online. It offers:

• Product Search: Finds items based on specific needs or preferences.
• Styling Advice: Helps with questions like, “What shoes go with this dress?”
• Size Suggestions: Advises on sizes based on the user’s regular fit.
• Personalized Bundles: Creates recommendations like, “Show me similar dresses,” or “Bundle shoes with this outfit.”

It’s essentially a hybrid of a knowledgeable salesperson and a digital tool that integrates seamlessly with e-commerce sites.

Microsoft’s Role in Development

Jim:
How involved was Microsoft in bringing this to life?

Michael Tutek:
Microsoft played a massive role. They provided resources, technical expertise, and even marketing support. Initially, they helped us build a proof of concept (POC), but we ended up developing it faster than expected internally. Their team now supports us weekly, offering technical advice and go-to-market strategies. We’ve also collaborated with their Redmond-based teams on advanced features.

Microsoft’s startup program was instrumental too, giving us significant Azure credits early on. This kind of support has been invaluable in scaling up.

Early Implementation: Blue Bungalow’s Experience

Jim:
Where is the assistant currently live?

Michael Tutek:
Our first implementation is with bluebungalow.com.au, a Shopify fashion brand. Their audience, mostly aged 40-60, provided valuable insights. Surprisingly, even among older demographics, the feedback has been overwhelmingly positive. We were prepared for resistance to AI but haven’t seen much of it.

Understanding User Mindsets Around AI

Michael Tutek:
Through our studies, we identified four distinct mindsets about AI:

1. Enthusiasts: Younger users eager to adopt AI for its novelty.
2. Curious but Sceptical: Open-minded users who need minimal convincing.
3. Cynical: Users who need proof that AI is useful and trustworthy.
4. Haters: Strongly resistant, often believing AI is deceptive or a job threat.

Interestingly, these groups are almost evenly distributed, but older generations tend to fall into the cynical and hater categories.

Privacy, Security, and Data Handling

Jim:
What about privacy and data security? How does the assistant manage that?

Michael Tutek:
Currently, the assistant operates independently from customer accounts. It stores temporary profile information, like size or preferences, to personalise recommendations. Users can see what the assistant knows about them and delete their profile data anytime. It doesn’t store sensitive details like emails or phone numbers.

In the future, we plan to integrate it more closely with accounts but will maintain strict transparency and privacy standards.

Costs and Scalability for Retailers

Jim:
What are the costs for businesses looking to implement this?

Michael Tutek:
We aim to make onboarding simple and cost-effective. For most retailers, setup takes under 30 minutes. The main costs are token-based (per interaction) and minimal database expenses. We’re building the platform to be plug-and-play, scalable, and affordable—even for smaller brands.

Future Developments: Enhancements and Broader Reach

Jim:
What’s next for the assistant?

Michael Tutek:
We’re expanding into visual search, deeper personalisation, and embedding components across e-commerce pages. Long-term, the assistant may merge with search functionality, offering smarter navigation and conversational capabilities. Initially, we’re focusing on Shopify fashion brands, but we plan to branch out into other categories like beauty and electronics, eventually exploring non-retail applications.

Broader Implications for Search and E-Commerce

Jim:
Do you see tools like this replacing traditional search functionality?

Michael Tutek:
It’s possible. Traditional search is often basic and navigational. AI assistants can enhance this by understanding intent and delivering nuanced responses. For instance, instead of searching “red tops,” you could ask, “What red tops are good for work and made of cotton?” The assistant bridges the gap between navigation and intelligent recommendations.

Closing Remarks

Jim:
Michael, thank you for sharing such detailed insights into Preezi.com and your AI shopping assistant. It’s clear this technology has the potential to revolutionize e-commerce.

Michael Tutek:
Thanks for having me! We’re excited about the journey ahead and making online shopping more intuitive for everyone.

Jim:
Thanks for tuning in, everyone! Remember to like, share, and subscribe. See you next week!

Jim

Jim’s been here for a while, you know who he is.