Debenhams is piloting an agentic AI solution integrated with PayPal to optimize the mobile shopping experience and reduce cart abandonment rates, a persistent challenge for online retailers.

Integration Details

The pilot makes Debenhams the first UK retailer to test an automated checkout flow that keeps the user entirely within the PayPal ecosystem. Shoppers can use natural language to search for items from Debenhams Group's brands, including boohoo, boohooMAN, Karen Millen, and PrettyLittleThing. The AI analyzes the user's profile to provide personalized recommendations based on budget and preferences.

The virtual assistant asks follow-up questions to narrow down options and locate product availability. Once an item is selected, the transaction takes place directly in the chat window, using saved credentials for shipping and payment. This eliminates the need to redirect customers to a separate mobile site or app.

Business Drivers

Debenhams processes 16% of its sales through PayPal. Integrating product discovery into a channel already widely used by customers simplifies the sales process. Debenhams and PayPal jointly developed the agentic AI project. After an initial testing phase in the United States, an extension of the service is planned in the United States and the United Kingdom by the end of the year. In the US, the system also integrates with external tools such as Perplexity and Microsoft Copilot.

AI Infrastructure Integration

Debenhams recently partnered with Peak AI to improve forecasting for stock, sales, and pricing. Effective deployment of agentic AI in commerce requires real-time visibility into inventory and pricing. Additionally, the company launched the Debenhams Group AI Skills Academy to train employees in the application of AI.

This agentic AI commerce deployment tests whether third-party platforms can capture high-intent traffic better than proprietary apps. Success will depend on data accuracy and the ability of the agent to interpret queries without hallucination.