Project Overview
A UK fashion retailer with 2.8 million registered customers and £180M annual online revenue wanted to build an...
Technology Stack
Compliance & Standards
The Challenge
A UK fashion retailer with 2.8 million registered customers and £180M annual online revenue wanted to build an AI personalisation engine — replacing their legacy recommendation system (rule-based, last updated 2019) with a real-time ML model. UK GDPR consent-based personalisation (ICO Guidance on Cookies and Similar Technologies), PECR for personalisation tracking, and a Responsible AI framework (transparency and non-discrimination) were the requirements. Budget: £110,000.
Our Approach
Personalisation ML Architecture
Collaborative filtering model (Matrix Factorisation using implicit feedback — browse, add-to-bag, purchase, return) deployed on AWS SageMaker.
Feature engineering
- user recency/frequency/monetary (RFM), category affinity scores, brand affinity, price sensitivity, seasonal behaviour patterns.
- Real-time inference: SageMaker real-time endpoint (p95 <
- 80ms) serving Next.js product recommendation components.
- UK GDPR Consent-
ICO cookie guidance
- personalisation based on browsing history requires PECR consent (not legitimate interest).
- Consent-tier architecture: Tier 1 (no consent) → session-based recommendations (no persistent profile), Tier 2 (analytics consent) → cross-session recommendations using anonymised ID, Tier 3 (personalisation consent) → full ML personalisation with named account profile.
Consent withdrawal
profile deletion within 24 hours.
Responsible AI Framework
Non-discrimination audit: personalisation model tested for proxy discrimination (price sensitivity score correlated with postcode-inferred deprivation index — removed as feature).
Transparency
- "Why am I seeing this?" explanation on every recommendation (driven by: your recent views, similar customers, trending in your size).
- Right to object to automated decision-making: opt-out of ML personalisation returns to editorial curation.
A/B Testing and Revenue Attribution
Multi-armed bandit (not pure A/B) for faster convergence: Thompson Sampling allocation between model variants.
Revenue attribution
ML recommendations tagged with recommendation_id — tracked through add-to-bag and purchase events via server-side analytics (not client-side — PECR compliant without additional consent).
Statistical significance
Bayesian approach (probability of being best, not p-value).
The Results
Model live at 14 weeks, £102,000 — under budget.
Revenue per session (personalised vs non-personalised): +23%.
Email click-through rate with personalised product picks: +41%.
Return rate: −8% (better size/style matching).
PECR compliance: ICO cookie audit zero findings.
Responsible AI audit: zero discriminatory proxy features.
Consent rate for personalisation: 67% (industry benchmark: 55%).
“23% revenue per session uplift on a £180M business is material. The PECR-compliant consent architecture getting 67% opt-in (vs 55% industry benchmark) proves that transparency builds trust. The Responsible AI audit removed the postcode proxy — which was the right decision commercially and ethically." — Chief Digital Officer, UK Fashion Retailer (name withheld)”
Project Details
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