In an era where digital storefronts are often criticized for their static, transactional nature, Elevated Brands Group is charting a new course. By integrating agentic, AI-powered conversational assistants into its flagship retail sites, Rugs Direct and Lightopia, the company is transforming the online shopping experience from a passive search-and-click routine into an interactive, consultative dialogue. The centerpiece of this transformation is "Ask Cleo," an AI-driven shopping agent that is already proving that when it comes to e-commerce, the human touch—even when simulated by machine learning—drives significant bottom-line results.
The Dawn of Agentic AI in Retail: The Main Facts
Elevated Brands Group, a parent company that oversees both Rugs Direct and Lightopia, has officially rolled out its AI-powered shopping assistant, Ask Cleo, across its digital platforms. The deployment represents a pivot toward "agentic" AI—a sophisticated form of artificial intelligence that goes beyond simple keyword matching. Unlike traditional search bars that require specific terminology, Ask Cleo utilizes natural language processing to engage in back-and-forth communication with shoppers.
The primary objective behind the rollout is to bridge the gap between technical product specifications and consumer design aspirations. Whether a shopper is looking for a rug that fits a specific room dimension or a light fixture capable of illuminating a vaulted ceiling, Ask Cleo is designed to act as an expert consultant. By asking clarifying questions and providing nuanced design advice, the tool effectively functions as a digital store associate, guiding customers through complex purchase decisions that might otherwise lead to decision paralysis or cart abandonment.
A Chronology of the Rollout
The strategic implementation of Ask Cleo was methodical, prioritizing a phased approach to ensure stability and effectiveness. The initiative began with Lightopia, which debuted the AI assistant on its website in May of this year. Given the highly technical nature of lighting—where factors such as color temperature, dimmability, and fixture compatibility are critical—Lightopia served as a rigorous proving ground for the AI’s capabilities.
Following the success of the Lightopia pilot, the technology was introduced to Rugs Direct in early June. The quick succession of these launches reflects the confidence Elevated Brands Group placed in its technology partner, Constructor, which was tapped to architect and develop the system. Throughout the summer, the company has focused on refining the AI’s responses, testing its brand voice, and ensuring that the agent’s advice remains consistent with the company’s high-quality standards.
The Data Behind the Dialogue: Performance Metrics
The most compelling aspect of the Ask Cleo integration lies in its performance data. According to Sharon Gautschi, chief merchandising officer of Elevated Brands Group, the metrics are not just positive—they are transformative.
Consumers who engage with Ask Cleo demonstrate significantly higher intent-to-purchase signals compared to those who rely solely on traditional search methods. Specifically, add-to-cart rates for users who interact with the AI assistant have been reported as 8x to 9x higher than the rates seen among the broader user base.
However, Gautschi remains pragmatic about these numbers. "You do have to temper that with engagement," she noted in an interview with Digital Commerce 360. While the conversion lift is dramatic, it currently exists on a smaller base of users. The majority of shoppers still default to classic search bars, a legacy behavior that the company expects to shift over time as consumers grow more comfortable with conversational AI.
The data also reveals a direct correlation between the depth of the interaction and the likelihood of a sale. The company has observed that the more questions a customer asks the AI, the higher the resulting KPIs. This trend suggests that the AI is effectively "warming up" the customer, providing the necessary reassurance and technical information required to finalize a high-value purchase.
The Technical Infrastructure: Training an AI Agent
The intelligence behind Ask Cleo is not innate; it is the product of a rigorous training process overseen by the team at Elevated Brands Group. The company invested four to six weeks in a specialized training cycle to ensure the AI understood both the products and the desired brand voice.
Feeding the Knowledge Base
To create a truly helpful assistant, the company utilized its extensive library of proprietary content. This included:
- Product Specifications: Every technical detail, from rug pile height and material composition to bulb compatibility and ceiling mount requirements, was ingested into the AI’s training model.
- SEO-Driven Content: The company leveraged years of blog posts and articles originally written for search engine optimization, which provided the AI with a wealth of context regarding design trends, styling tips, and common consumer pain points.
- Data Integrity: Gautschi emphasized that the company’s commitment to data hygiene was a major factor in the success of the project. In many retail environments, product specs are siloed or inconsistent; Elevated Brands Group’s internal ability to maintain clean, accurate data allowed Ask Cleo to provide highly reliable answers.
The "Well-Informed Friend" Philosophy
Elevated Brands Group’s goal was to make Ask Cleo sound like a "well-informed friend with great design, style, and taste." This meant moving beyond the robotic, clinical responses often found in standard chatbots. The AI is trained to provide recommendations, not just lists. If a customer asks for a rug, the agent might suggest complementary textures or explain why a certain material is better suited for high-traffic areas, thereby adding value to the customer’s journey.
The training process involves a continuous loop of testing. The internal team frequently poses questions to the agent; if the response is deemed suboptimal or technically imprecise, the team provides corrective feedback to the third-party developers, creating an iterative cycle of improvement.
External Traffic and the AI Ecosystem
Beyond the on-site experience, Elevated Brands Group is keenly aware of the evolving landscape of AI-driven traffic. As global platforms like OpenAI’s ChatGPT, Anthropic’s Claude, and Perplexity become primary starting points for the consumer shopping journey, retail traffic is beginning to shift.
Currently, referrals from these AI platforms account for less than 10% of traffic to Rugs Direct and Lightopia. While modest, this represents a growing channel that the company intends to capture. Gautschi expressed a clear desire for this segment to expand. "We are definitely getting more traffic from AI platforms, but not enough," she admitted. "I want more."
For a mid-sized retailer, competing with industry titans like Wayfair or Walmart requires agility. By leaning into AI early, Elevated Brands Group is positioning itself to be "found" by AI search engines. If these platforms can deliver "more qualified" traffic than traditional paid search or social media advertising, the company anticipates that the Return on Ad Spend (ROAS) will be significantly higher, providing a competitive edge that is not solely reliant on massive marketing budgets.
Implications for the Future of Retail
The success of Ask Cleo signals a broader shift in the digital retail landscape. We are moving away from the "search and filter" era toward a "consult and convert" model.
1. The Death of the Passive Search
Traditional search bars are becoming insufficient for modern consumers who desire curated advice. When a customer knows what they want but not which product best solves their problem, the burden of filtering through thousands of SKUs is high. Conversational AI removes that friction.
2. The Rise of "High-Intent" Traffic
The 8x to 9x increase in add-to-cart rates highlights a critical truth: when a customer feels heard and understood, they are far more likely to commit to a purchase. AI agents like Ask Cleo are not just replacing a search bar; they are acting as a digital sales force that works 24/7.
3. Data Integrity as a Competitive Moat
The ability for an AI to be "smart" is entirely dependent on the quality of the data it is fed. Retailers who have invested in clean, structured, and comprehensive product data will find themselves at a massive advantage as the e-commerce world shifts toward AI-first search.
4. The Challenge of Scale and Adoption
While the KPIs are impressive, the hurdle remains habit formation. As Gautschi noted, the majority of customers still gravitate toward traditional methods. The next phase for Elevated Brands Group will be to increase awareness and trust in the AI agent, demonstrating to the broader customer base that Ask Cleo is a reliable tool for their design projects.
Conclusion
Elevated Brands Group has demonstrated that AI, when implemented with a focus on data integrity and brand voice, can produce tangible business results. By turning its digital stores into conversational spaces, the company is not only improving its conversion rates but also creating a more intuitive and helpful shopping experience. As AI traffic continues to evolve and the technology behind "Ask Cleo" becomes more sophisticated, the gap between the online and offline shopping experience is likely to close even further. For the retail industry, the message is clear: the future of commerce is a conversation.
