Top 10 AI Prompts and Use Cases and in the Retail Industry in Israel
Last Updated: September 9th 2025

Too Long; Didn't Read:
Israel's retail AI playbook spotlights top 10 prompts/use cases - personalization, demand forecasting (MAPE cuts, 20–50% error reduction), dynamic pricing, multilingual bots, visual search, loss prevention and last‑mile optimization - with 28% adoption and 28.33% CAGR to ≈$4.6B by 2030.
Introduction - Israel's retail scene is rapidly moving from pilots to production: a June snapshot shows 28% of Israeli businesses reporting AI use, while market forecasts project a 28.33% CAGR to roughly $4.6 billion by 2030 - signals that personalization, computer‑vision heatmaps, and smarter last‑mile logistics are no longer niche experiments but competitive levers for local retailers.
Israeli retail‑tech startups are already shipping practical tools - demand forecasting, in‑store analytics, and unified commerce platforms - showcased by more than fifty companies on the NRF 2025 stage, and policymakers and firms are focused on training and safe deployment as adoption grows.
For retailers and teams that need hands‑on prompt design, model‑use skills, and change‑management tactics, Nucamp's AI Essentials for Work bootcamp offers a practical 15‑week path to apply AI across business functions.
Read the market outlook from Greenberg Traurig and the national adoption snapshot to understand where opportunities and risks intersect.
Metric | Value |
---|---|
Businesses reporting AI use | 28% |
Projected AI market CAGR (2024–2030) | 28.33% (≈ $4.6B by 2030) |
Share of tech startups focused on AI | ~25% (attracting 47% of tech investment) |
Table of Contents
- Methodology - How we selected prompts and use cases (Data & Research Sources)
- 1. Personalized Customer Experience - Hyper-Personalization (Example: Michaels-style campaigns)
- 2. Demand Forecasting & Smart Inventory Management - Forecasting for perishables (MAPE focus)
- 3. Dynamic Pricing & Promotion Optimization - Price experiments across store tiers
- 4. Conversational AI, Chatbots & Voice Assistants - Multilingual Hebrew & Arabic Support
- 5. Visual Search & Frictionless Checkout - Camera and sensor pilots (Instacart/Caper Cart analogues)
- 6. Dynamic Merchandising & In-Store Layout Optimization - Heatmaps and planograms
- 7. Loss Prevention & Shrink Detection - CCTV analytics and transaction anomaly detection
- 8. Supply Chain & Last-Mile Logistics Optimization - Route and replenishment strategies for Israel
- 9. Marketing Optimization & Generative Content - Multilingual product copy and campaigns
- 10. AI Agents for Store Associates - Sales Copilots and mobile assistant tools
- Conclusion - A practical checklist for Israeli retailers
- Frequently Asked Questions
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Methodology - How we selected prompts and use cases (Data & Research Sources)
(Up)To pick the prompts and use cases most relevant to Israeli retailers, the shortlist was built by triangulating practical vendor playbooks, market studies and real-world case studies: legal and commercial checklists from industry writeups, hands‑on product guidance from platform vendors, and Israel‑focused notes on logistics and workforce impacts.
Key inputs included deep dives on AI use cases and compliance from Michalsons, sector-wide adoption and in‑store tooling trends from the CTA report, vendor playbooks from CommerceIQ and Instacart, AWS guidance on generative AI for merchandising and service, and local context from Nucamp's Israel profiles on last‑mile logistics and skill shifts.
Selection criteria were simple and outcome‑driven - measurable lift (for example, forecasting error reductions of 20–50% cited in market analyses), technical feasibility, data‑privacy and bias risk, and clear operational playbooks that translate to Israeli supply‑chain and multilingual retail settings - a focus on prompts that move the needle, not just headlines.
“CommerceIQ has enabled my team to operate at the pace needed to win in the market. Issues that would take weeks to identify are now being flagged and resolved on the same day.” - CommerceIQ testimonial
1. Personalized Customer Experience - Hyper-Personalization (Example: Michaels-style campaigns)
(Up)Hyper-personalization is becoming a production-ready lever for Israeli retailers, where local vendors and global platforms combine product intelligence, auto‑tagging, and real‑time rewards to turn occasional buyers into loyal shoppers; Israeli retail‑tech profiles highlight companies like SELECTIKA that use generative AI to auto‑tag inventory with an extensive list of attributes (reducing returns and boosting margins), and Watchful/Corsight use real‑time signals to inform timely experiences - details that make Michaels‑style project campaigns practical in Israel's omnichannel stores.
Platforms such as Dynamic Yield Experience OS personalization platform show the kind of lift to expect (+8% AOV, 32% of purchases from recommendations, and other conversion uplifts), while loyalty research on 2025 hyper-personalized loyalty programs and retention research underscores real‑time personalization and instant reward delivery as retention drivers (72% of customers expect immediate service).
For Israeli retailers, the so what is simple: combine granular tags, predictive recommendations, and instant, context‑aware rewards to make curated craft and project campaigns convert like a mini pop‑up - relevant, timely, and measurable.
2. Demand Forecasting & Smart Inventory Management - Forecasting for perishables (MAPE focus)
(Up)For perishables, the headline metric isn't fanciful AI jargon but a clear operational lever: mean absolute percentage error (MAPE) - a measure of the average absolute difference between forecasted demand and actual sales - and tightening that error rate directly cuts spoilage, markdowns, and costly rush replenishment.
Focusing prompts and models on short‑horizon demand signals, store‑level seasonality, and SKU‑level perishability turns forecasting from a monthly spreadsheet exercise into an operational alarm bell that tells teams what to move, when, and where; see a practical primer on forecast accuracy and MAPE for retail forecasting best practices.
In Israel's dense retail landscape, pairing tighter MAPE targets with intelligent replenishment and the right last‑mile playbook reduces both lost sales and wasted inventory - explore how AI‑driven logistics and local vendor profiles fit into retail stacks to keep fresh goods turning into purchases, not markdowns.
3. Dynamic Pricing & Promotion Optimization - Price experiments across store tiers
(Up)Dynamic pricing in Israel should be treated as a tightly scoped experiment across store tiers - city-center, suburban, and periphery - where real‑time inventory and competitive signals let merchants run safe, measurable price tests that protect margins and clear slow SKUs before they calcify into markdowns.
Modern platforms weave live stock data into price rules so a promotion can be paused the moment milk (a typical KVI) runs low, or dialed up in a neighborhood showing an event-driven surge; RELEX's playbook on real‑time pricing and promotions explains how inventory‑aware rules and confidence scores keep automation from becoming a black box.
Pairing event intelligence from PredictHQ with elasticity models lets Israeli retailers pre-commit to targeted, time‑boxed experiments (for example, testing a 5% discount in three stores for one weekend) and simulate outcomes before rollout, while B2B/wholesale guidance from Revology shows how segment and customer‑level constraints prevent margin erosion.
Start with narrow pilots, clear KPIs, and human exception workflows so pricing becomes a competitive lever - not a trust issue - and the most valuable outcome is simple: faster, less risky decisions that capture demand where and when it appears.
Mathem promotional outcomes (RELEX case) | Result |
---|---|
Increase in profitable promotions | 56% |
Gross promotional sales boost | 20% |
Improvement in true lift sales | 32% |
Reduction in unprofitable campaigns | 17% |
“RELEX gave us an automated, integrated system that provides our teams with a much deeper understanding of the factors behind successful campaigns. Working with RELEX has really helped us to run our promotions more efficiently and profitably.” - Carl‑Johan Sagner, Mathem Promotional Strategy Manager
4. Conversational AI, Chatbots & Voice Assistants - Multilingual Hebrew & Arabic Support
(Up)Conversational AI in Israel needs more than a one‑size‑fits‑all bot: multilingual chat and voice assistants must fluently switch between Hebrew, Modern Standard Arabic and regional dialects, preserve right‑to‑left layout, and work across channels like web widgets and WhatsApp to meet shoppers where they already are.
Practical how‑tos such as Khoros's guide to creating an Arabic‑speaking bot with automatic right‑to‑left alignment show the small UI details that prevent a clumsy experience, while Verloop's deep dive on Arabic chatbots highlights the dialect diversity and the need for local training data and generative NLU to sound natural across Levantine and Egyptian variants.
Retail‑focused platforms like BOTTER demonstrate prebuilt retail NLP and no‑code flows that accelerate omnichannel deployments and analytics for dialect detection.
The payoff for Israeli retailers is tangible: fewer escalations, faster resolutions, and higher trust when a customer in Haifa can seamlessly switch languages mid‑chat and still get a context‑aware, correctly aligned reply - turning a friction point into a competitive customer service advantage.
5. Visual Search & Frictionless Checkout - Camera and sensor pilots (Instacart/Caper Cart analogues)
(Up)Visual search plus camera-and-sensor pilots are the quickest route to making checkout feel invisible in Israeli stores: by letting shoppers snap a photo or circle an item, on‑device vision and backend product vectors surface matching SKUs, complementary items, and even in‑session recommendations so a mobile query converts far faster than typing - Shopify notes visual search can halve the path to purchase.
Amazon's recent Lens upgrades show how image+text queries and instant “circle to search” tools speed discovery, and Coveo's visual‑intelligence guidance explains how catalog enrichment and image vectors turn pictures into precise product matches and richer recommendations; together these patterns map directly to camera pilots that combine shelf sensors, app cameras, and frictionless-payment flows.
For Israeli retailers this means a pragmatic pilot playbook: start with high‑quality photos and deep tagging, test image‑first flows on mobile for fashion and home categories popular with Gen‑Z shoppers, and instrument every step so a photo query - literally - becomes a one‑tap checkout, shortening visits and cutting returns by setting clearer expectations up front (Amazon Lens visual search shopping features, Coveo visual intelligence for e-commerce visual search, Shopify visual search guide for retail merchants).
6. Dynamic Merchandising & In-Store Layout Optimization - Heatmaps and planograms
(Up)Dynamic merchandising in Israel becomes surgical when heatmaps and planograms talk to each other: sensor and video‑based heatmaps surface “red” hotspots and “blue” dead zones so teams can reassign high‑margin endcaps, clear chokepoints, and redesign aisles for predictable flow - actions shown to cut customer blockage by up to 20% and lift sales by double‑digit margins in pilot studies.
Start with accurate people‑counting and millimeter‑wave or Bluetooth sensors to get sub‑1‑meter pathing, then join that movement data to POS and campaign analytics to measure true conversion from a relocated display; Contentsquare's guide explains how dwell and interaction maps drive smarter placement, Mapsted highlights GDPR‑compliant, minimal‑hardware deployments for tight rollouts, and Walkbase shows how asset‑aware sensors turn heatmaps into concrete planogram changes and staffing plans.
For Israeli retailers squeezed for space and time, the payoff is simple and measurable: turn underused corners into predictable revenue zones and schedule staff around power hours rather than guesses, making every square meter work harder.
Contentsquare guide to retail heatmaps and dwell analysis, Mapsted GDPR-compliant in-store heat mapping solutions, Walkbase sensor-based store layout and planogram optimization.
7. Loss Prevention & Shrink Detection - CCTV analytics and transaction anomaly detection
(Up)Loss prevention in Israeli stores moves from recorders to real‑time defenders when CCTV analytics and transaction‑anomaly detection are combined with POS integration, RFID/EAS and edge compute: AI vision flags pre‑theft behaviors and crowd formation outside a shop, POS analytics spot mis‑scans or “sweethearting” at self‑checkout, and connected alerts put staff where they can deter incidents before inventory walks out the door.
Practical pilots start small - cover entrances, high‑risk SKUs and checkout lanes - then layer item‑level visibility (RFID) and cloud dashboards so teams can answer “who, what, when, where” without replaying hours of footage; Axis retail cameras and analytics guide for reducing shrinkage explains the sensor and UX details to prioritize.
Tie those capabilities into broader retail playbooks for Israel via the Nucamp AI Essentials for Work syllabus and the result is not just fewer losses but clearer operational signals - know which products get targeted, when to lock cases, and where to redeploy staff so every square meter earns its keep.
“Where Rhombus really shines is its service. Rhombus doesn't just meet expectations, they shatter them, responding with industry leading speed and a willingness to try new tactics to move the industry forward.” - Yehuda Zahler, Growth & Partnerships Lead at Panoptyc.
8. Supply Chain & Last-Mile Logistics Optimization - Route and replenishment strategies for Israel
(Up)Optimizing supply chain and last‑mile logistics in Israel means turning miles and minutes into measurable margin: AI route planners and multi‑stop engines can cut miles driven by double digits and tighten ETAs so customers actually trust the window they're given.
Practical Israeli plays start with fast, integrated route engines that pair AI ETA accuracy and live tracking with execution tools - think the DispatchTrack route optimization playbook for accurate ETAs and faster routing - then layer multi‑stop planners that cluster dense urban drops and reduce empty miles (FarEye's multi‑stop strategies report up to 20% fewer miles).
The operational payoff is vivid: planners who once wrestled with paper maps and ad‑hoc spreadsheets can shave up to two hours from daily planning cycles and reroute drivers on the fly, while fleets see real reductions in fuel, failed deliveries and overtime.
For Israeli retailers juggling tight windows, narrow streets and mixed fleets, start with a route optimization trial, instrument ETAs and exceptions, and push the savings into predictable same‑day or BOPIS offers that actually improve service without breaking margins - see DispatchTrack's route optimization guide and PTV's last‑mile solutions for implementation patterns.
Metric | Result (sources) |
---|---|
Miles driven | 10–20% reduction (DispatchTrack, FarEye) |
ETA accuracy / on‑time performance | ~98% ETA accuracy reported (DispatchTrack) |
Planner time saved | Up to 2 hours reduced in planning (PTV / ID Logistics) |
Last‑mile cost reduction | Up to 30% potential savings with routing software (Route4Me) |
9. Marketing Optimization & Generative Content - Multilingual product copy and campaigns
(Up)Marketing teams in Israel can turn generative content from a one-off experiment into a scalable revenue engine by weaving multilingual product copy, localized SEO and campaign automation into everyday workflows - especially for Hebrew and Arabic where right-to-left layout and cultural tone matter.
AI engines that auto-translate and culturally adapt new SKUs into 20+ languages (with instant Shopify/WooCommerce sync) make it possible for a Tel Aviv storefront to publish a perfectly formatted Hebrew description the moment a product is added, avoiding the garbled RTL mistakes that kill conversions; learn how a Multilingual Product Description Generator handles cultural adaptation and SEO optimization Multilingual Product Description Generator case study and implementation.
Combine that with platform-level language support and custom text classification to keep NLU consistent across Hebrew, Arabic and English (Microsoft Language Studio supported languages documentation), and feed translated copy into multilingual email and campaign tools to lift opens and conversions across segments (review of top AI tools for multilingual email campaigns).
The payoff is concrete: higher trust, better SEO in local search, and a single workflow that turns localization from a bottleneck into a predictable lift - imagine turning a new SKU into 20 tailored product pages overnight and watching purchase rates climb.
Metric | Value |
---|---|
Shoppers preferring native-language descriptions | 75% |
Languages supported by generator | 20+ (including Arabic & Hebrew) |
Indicative cost | $0.40 per SKU per language |
“We went multilingual in 48 hours. Non-English sales jumped from 12% to 47% of total revenue in Q3. The ROI was immediate - €180K additional revenue for €2,400 in translation costs.” - Erik, International Director at a sports company
10. AI Agents for Store Associates - Sales Copilots and mobile assistant tools
(Up)AI agents and mobile “sales copilots” are turning store associates into instant experts on the shop floor by surfacing product specs, inventory across locations, contextual recommendations, training snippets and task nudges in natural language - exactly the capabilities Microsoft positions in its retail Copilot playbook to boost knowledge sharing, task management and on‑the‑job coaching (Avanade Microsoft Copilot for Retail solution).
In Israel that human+AI mix is already supported by a rich local stack: Onebeat's real‑time customer analytics syncs online and in‑store signals to tailor assortments and staffing, Drill's camera‑based emotion and behavior tracking ran a 30‑store pilot with Victory supermarkets, Trax and Nexite bring shelf visibility and NanoBT tag‑enabled mobile checkout to the same workflow, and STOREE automates store operations so associates spend less time on routine tasks.
The payoff is concrete and immediate - faster onboarding, fewer stock-outs and more timely, personalized service - so an associate in a busy Tel Aviv store can move from lookup to a confident recommendation in seconds, turning short interactions into higher‑value moments for customers and teams.
Startup | Primary capability |
---|---|
Onebeat | Real‑time customer analytics and synchronized store management |
Drill | Camera‑based behavior & emotion tracking (30‑store Victory pilot) |
Trax | Autonomous shelf monitoring and store condition analytics |
Nexite | In‑store intelligence and NanoBT tags for mobile self‑checkout |
STOREE | AI‑powered automatic store operations and task automation |
Conclusion - A practical checklist for Israeli retailers
(Up)Conclusion - A practical checklist for Israeli retailers: treat AI as an operational bet, not a magic button - start by shoring up the data foundation (MIT research warns 95% of pilots stall without it), then run tight micro‑experiments that map to clear KPIs rather than broad, unfunded mandates (Publicis Sapient's playbook recommends focused pilots and data cleanup); align marketing, IT and store operations around a single omnichannel playbook and timing rules so personalization meets intent (Grant Thornton's omnichannel guidance), and lean on Israel's deep vendor ecosystem and national momentum - remember the 1 billion NIS backing for Israel's National AI Program and the rapid growth in local AI startups - when sourcing pilots and edge hardware.
Prioritize privacy-by-design and consented data capture, instrument ROI at the point of decision, and build human‑in‑the‑loop exception flows so automation scales without eroding trust; when teams need practical, job‑ready skills to write prompts and operationalize these pilots, consider a hands‑on course like the AI Essentials for Work syllabus (15-week bootcamp).
For a snapshot of Israel's national AI momentum and vendor strength see Inside Israel's AI Revolution report, and for customer‑first implementation guidance read the Grant Thornton omnichannel AI playbook for retail customer experience; follow the checklist - data foundation, narrow pilots, cross‑team ops, measured ROI, consent - and experiments turn into repeatable production wins.
Metric | Value |
---|---|
National AI Program backing | 1 billion NIS |
Israeli AI startups (2014 → 2023) | 783 → 2,170 |
Enterprise AI pilots failing to scale (MIT) | 95% |
“Generic tools like ChatGPT excel for individuals because of their flexibility, but they stall in enterprise use since they don't learn from or adapt to workflows.” - Incorta / MIT research summary
Frequently Asked Questions
(Up)What are the top AI prompts and use cases for the retail industry in Israel?
The article highlights ten production-ready use cases and prompt families: 1) Hyper-personalization and campaign prompts (granular auto-tagging, contextual rewards); 2) Demand-forecasting prompts for perishables (short-horizon, store-/SKU-level forecasting with MAPE focus); 3) Dynamic-pricing and promotion optimization prompts (inventory-aware, event-driven experiments); 4) Conversational AI prompts for multilingual Hebrew/Arabic voice and chat; 5) Visual-search and image-to-product prompts for frictionless checkout; 6) Heatmap and planogram prompts for dynamic merchandising and layout optimization; 7) CCTV and transaction-anomaly prompts for loss prevention and shrink detection; 8) Route-optimization and last-mile planning prompts for supply-chain efficiency; 9) Generative-content prompts for multilingual product copy and campaigns; 10) AI agent/sales-copilot prompts for store associates (task nudges, on-floor recommendations).
What is the current AI adoption and market outlook for Israeli retail?
A June snapshot shows roughly 28% of Israeli businesses reporting AI use. Market forecasts estimate a ~28.33% CAGR for the local AI market through 2030, reaching about $4.6 billion. About 25% of tech startups focus on AI and attract approximately 47% of tech investment. The national AI program backing is cited at 1 billion NIS, and the number of Israeli AI startups grew from 783 in 2014 to 2,170 by 2023.
What measurable outcomes and operational KPIs should retailers expect from AI pilots?
Expected lifts vary by use case: personalization pilots can yield ~+8% average order value and ~32% of purchases from recommendations; RELEX-style promotion automation reported a 56% increase in profitable promotions, 20% gross promotional sales boost, 32% improvement in true-lift sales and 17% reduction in unprofitable campaigns. Forecasting improvements are measured by MAPE reductions (directly cutting spoilage and markdowns). Last-mile and routing trials report 10–20% fewer miles driven, up to ~98% ETA accuracy in some implementations, planner time savings up to 2 hours/day, and up to 30% last‑mile cost reduction in certain stacks. For multilingual content, studies show ~75% of shoppers prefer native-language descriptions; generators can support 20+ languages at indicative costs near $0.40 per SKU per language.
How should Israeli retailers begin implementing AI while minimizing risk?
Start with a strong data foundation - MIT research indicates ~95% of enterprise pilots fail to scale without it - then run narrow, outcome-driven micro-experiments mapped to clear KPIs (e.g., MAPE targets, promo lift). Prioritize privacy-by-design and consented data capture, build human-in-the-loop exception workflows, and scope pilots (store tiers, SKUs, neighborhoods) before broad rollouts. Ensure multilingual and RTL support for Hebrew and Arabic in conversational and content systems. Leverage local vendor ecosystems and training (hands-on courses for prompt design and model use) and instrument ROI at the point of decision to convert experiments into repeatable production wins.
What legal, ethical and operational considerations should teams address when deploying retail AI in Israel?
Key considerations include data privacy and consent (privacy-by-design for customer and tracking data), bias and fairness in personalization and vision models (local dialects and demographic coverage), compliance with local regulations, secure edge and cloud deployments for CCTV and RFID, and UX details like right-to-left layout for Hebrew/Arabic. Operationally, implement human oversight for pricing and promotions, define rollback/exception rules, and document provenance for model outputs. Invest in safe-deployment playbooks and cross-team change management to avoid trust erosion and scale responsibly.
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Ludo Fourrage
Founder and CEO
Ludovic (Ludo) Fourrage is an education industry veteran, named in 2017 as a Learning Technology Leader by Training Magazine. Before founding Nucamp, Ludo spent 18 years at Microsoft where he led innovation in the learning space. As the Senior Director of Digital Learning at this same company, Ludo led the development of the first of its kind 'YouTube for the Enterprise'. More recently, he delivered one of the most successful Corporate MOOC programs in partnership with top business schools and consulting organizations, i.e. INSEAD, Wharton, London Business School, and Accenture, to name a few. With the belief that the right education for everyone is an achievable goal, Ludo leads the nucamp team in the quest to make quality education accessible