AI is transforming the furniture industry, helping brands create smarter, more personalized shopping experiences while improving efficiency across operations. According to a report by market research firm CSIL, 60% of European furniture brands are ‘in progress’ when it comes to adopting AI and associated technologies, with a further 10% saying they are just getting started. This highlights the widespread utility of a technology whose full potential is still being sketched out, and the reality that, for many firms, there is still uncertainty about how to maximize the benefits.
What is certain is that firms are already achieving gains. IKEA launched its AI-powered Kreativ app in 2022 and has incorporated the technology in everything from chatbots to supply chain optimization. Wayfair uses generative AI to offer shoppers shoppable, photorealistic images for reimagining room designs. Ashley Wanek, CEO of Ashley Furniture, said in a recent webinar, “We’ve identified 172 individual projects in our company today that can use AI.”
“AI is as important and impactful to society as fire was to the caveman. We’ve embraced it.”
– Ashley Wanek, CEO, Ashley Furniture
From visual search tools that bridge inspiration and action to predictive intelligence that optimizes inventory, AI is becoming a competitive differentiator in an industry where consumer expectations are higher than ever. What can AI do for your business? With exclusive insights from Enhance XR’s Trends Report for Furniture Brands, discover THREE ways AI is giving furniture brands an edge in 2025.
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1. Offer customers AI-powered on-site visual search
Many shoppers struggle to describe what they’re looking for, making traditional text-based searches ineffective. On-site visual search allows customers to upload images—whether a photo, screenshot, or magazine clip—and instantly find similar products.
Brands like Sofology have implemented visual search tools that let users upload images to find matching items in their catalog, significantly improving product discovery and customer engagement. Instead of manually searching through hundreds of listings, shoppers can identify and purchase furniture they love in just a few clicks.
This AI-driven search eliminates frustration and speeds up the decision-making process. By removing barriers to discovery, visual search ensures customers remain engaged longer and are more likely to convert.
Coleman Furniture provides a compelling case study. The brand integrated AI-powered search tools, such as camera search and shop the look, to enhance product discovery. The implementation achieved impressive results:
- 7.1-fold increase in conversion rates among shoppers using visual discovery tools
- 29% increase in average order value
- 686% increase in overall average revenue per user
Moreover, visual search supports omnichannel strategies by connecting online and offline experiences. Customers who browse in-store but prefer to finalize purchases online can use visual search to quickly find the exact item they saw in person. By reducing friction in product discovery, AI-powered visual search shortens the purchase journey, increases engagement, and drives higher sales.
“If I had to prioritize one area of investment for 2025 in the context of a hospitality furniture factory, I would choose AI based predictive intelligence as the main focus area.”
– Rebecca Lorimer, Creative Director, Coco Wolf
2. Utilize AI-driven personalized recommendations
Customers expect brands to cater to their needs. AI-powered recommendation engines analyze browsing behavior, previous purchases, style preferences, and price sensitivity to suggest highly relevant products.
Beyond just suggesting similar items, AI can provide tailored recommendations when a product is out of stock or suggest complementary pieces that align with a customer’s taste. A recent study by consulting giant McKinsey found that 76% of customers feel frustrated when they don’t receive personalized interactions, making AI-driven recommendations essential for conversion and retention.
This all feeds into the overarching goal for retailers of making it ‘easier to buy’ – a mindset focused on removing barriers at every stage of the customer journey. AI is a technology that can facilitate this. By continuously learning from customer interactions, AI helps brands build stronger connections with shoppers, increasing engagement and driving higher order values.
3. Leverage predictive intelligence for inventory and marketing
What’s better than meeting customer needs? Anticipating them. AI-powered predictive intelligence enables brands to shift from reactive to proactive operations, allowing them to forecast demand, optimize inventory, and enhance marketing strategies by identifying purchasing patterns.
“AI-based predictive intelligence offers the greatest potential to impact all stages of the business, from production to customer experience.”
– Pablo Romero Cerdido, Brand & Contract, Muebles Romero
With predictive analytics, furniture brands can avoid overstocking or stockouts, reducing waste while ensuring popular products are always available. Predictive models also enhance marketing efforts by identifying which products resonate with specific customer segments, leading to more effective campaigns. The ability to anticipate trends and adjust operations accordingly positions brands as agile and customer centric, strengthening their competitive edge.
Additionally, AI-powered chatbots and virtual assistants are enhancing customer interactions, answering product questions in real-time, and guiding shoppers through the buying process, reducing drop-offs and abandoned carts. In a study by McKinsey, early adoption of AI is forecast to enhance productivity gains by as much as 25% above the baseline projection up to 2040, largely by freeing up workers to be redeployed more effectively.
AI in furniture: a compelling path to significant gains
AI is reshaping the furniture industry by enhancing search and product discovery, improving personalization, and optimizing inventory and other operations. Furniture brands that leverage AI-powered visual search, personalized recommendations, and predictive intelligence will be well-positioned to drive sales and enhance customer satisfaction in 2025.
But despite the undeniable impact of the technology, neither cost nor upheaval should be a barrier when it comes to bringing it to your business. “It doesn’t mean you have to go and spend hundreds of millions of dollars or a million dollars or even a hundred thousand dollars on it,” concludes Ashley Furniture CEO Ashley Wanek. “It means you have to be curious and understand these tools.” Given the transformative effect it has already had for brands across the furniture industry, ignoring AI is no longer an option.
Get ahead of the competition and take the lead in 2025. Download the Enhance XR Furniture Trends Report for practical insights into how to drive growth in your business. Grab your free copy here.
