[26.02.25, Berlin] — The shopping experience is going in a new direction where AI is the real protagonist, driving retail industry innovation and empowering consumers with informed decisions, striving towards a more sustainable future.

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Vaayu, the world’s first automated software for retail brands and businesses to track and cut carbon and impact in real-time, and Klarna, the AI-powered global payments network and shopping assistant, worked together to compile a report to highlight the advantages of the power of AI to improve the customer experience retail and bolster sustainability efforts on a global scale. 

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The report comes at a crucial time when, globally, 68% of consumers consider environmental factors before making a purchasing decision, but 44% believe they cannot actually make an informed decision about a product’s sustainability (YouGov 1, 2).

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AI’s Transformative Role in the Consumer Shopping Experience

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Vaayu developed “Re_Count” alongside menswear brand LESTRANGE, creating an interactive online life cycle calculator to educate consumers on ‘carbon budgets’ — the allocated ‘carbon allowance’ per person, per given time period — and guide sustainable choices. At the same time, AI is helping businesses reduce their own environmental footprint by prioritizing impact-reduction strategies, fostering greater transparency and trust. Vaayu’s work with athletic footwear brand On assessed On’s new LightSpray™ manufacturing technology and its environmental potential, using AI to conduct product life cycle assessments (LCA). The LCA findings showed that LightSpray™ had the potential to cut athletic shoe upper production emissions by about 75%. Results can help both On and shoppers understand the impact reduction potential of innovative manufacturing technologies, and, thus, the products that are made by them.

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Consumers experience decision fatigue due to the level of choices they are now presented with during shopping, but tools integrated into the shopping experience and powered by AI, like Klarna’s AI assistant, are able to reduce this fatigue, streamlining product discovery and offering real-time insights, while personalized recommendations based on shopping behaviour increase customer satisfaction. Automated price comparison features also help consumers effortlessly find the best deals, saving time and money. Adding a layer of sustainability, AI can also analyze LCA data to provide clear and actionable environmental impact metrics, empowering consumers to make more informed choices. Klarna’s intelligent search and compare tool is AI-powered and helps you find the perfect product by searching over 100 million items and comparing prices across stores on the Klarna app and web platform.

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Together, these advancements demonstrate AI's potential to transform retail into a more efficient, affordable, and sustainable experience.

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Addressing Retail Challenges with AI

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From limiting decision fatigue to enhancing transparency, AI is addressing some of retail’s biggest challenges:

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• Decision fatigue: AI cuts through overwhelming options by narrowing choices based on sustainability, preferences and behaviour.
• Affordability: AI-driven price tracking, cost-per-wear insights and discount predictions ensure cost-effective, sustainable shopping.
• Transparency: Real-time insights from AI help consumers understand the environmental impact of their purchases.

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For an in-depth exploration of these trends and AI’s transformative role in sustainability, take a look at the full report.

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“Klarna and Vaayu’s collaboration is at the forefront of integrating AI into retail sustainability, transforming the way we shop and consume. By equipping shoppers with actionable insights and empowering brands with real-time data, we’re not just reducing environmental impact — we’re redefining what’s possible for a sustainable future. This is just the beginning of a new era where AI technology and purpose converge to create lasting change.”

– Namrata Sandhu, Co-Founder and CEO at Vaayu

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"AI is revolutionizing retail by creating smarter, more sustainable shopping experiences. At Klarna, we leverage AI to empower consumers with better decision-making tools, from personalized recommendations to price comparisons and sustainability insights. We see this is a pivotal step towards a future where technology and sustainability go hand in hand."

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About Vaayu

One of TIME’s Best Inventions, Vaayu is the world’s first automated software empowering brands and businesses within the retail industry to track and cut their carbon and impact in real-time. Vaayu has created retail’s largest and most accurate impact database, which is continually evolving to power reduction at scale.

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About Klarna

Since 2005, Klarna has been on a mission to smooth commerce with consumer needs at the heart of it. With over 85 million global active Klarna users and 2.5 million transactions per day, Klarna’s fair, sustainable and AI-powered payment and shopping solutions are revolutionising the way people shop and pay online and in-store, empowering consumers to shop smarter with greater confidence and convenience. More than 600,000 global retailers integrate Klarna’s innovative technology and marketing solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. 

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For media inquiries, please contact:

Elena Mazzotti
PR Account Manager
‍press@vaayu.tech