AI in Action: How Artificial Intelligence Enhances Customer Experience and E-Commerce at the Otto Group
Generative AI: Hype Cycle or Solution to All Problems? It seems that there are currently more voices and opinions regarding the real value of AI than concrete ideas and implementations. As is often the case, it depends on what you make of it. The Otto Group demonstrates how it’s done with three concrete use cases in e-commerce.
"Yes, it is always a hype cycle, as is the case with technologies, but this one is moving much faster. We’re talking about two to three years before we see a high number of applications in daily operational work," said Dr. Sebastian Walter, VP Digital & Consulting at the Otto Group, during the Innovation Insights, a new format where the Otto Group presented the strategic significance of AI and three concrete use cases from the corporate subsidiaries Manufactum, the Witt Group, and Bonprix to around twenty journalists. AI is at the forefront of the Otto Group's innovation strategy. Does this mean the Otto Group is becoming an "AI-first company"? No, that is not the goal, explained Sebastian Walter: "Our goal is to remain a 'customer-first company.' Therefore, we use AI responsibly and always in the interest of our customers and employees."
Digital Consulting Excellence and a New Tech Service Provider
The first example of a customer-focused AI application was presented by Alexander Peters, Managing Director of Manufactum, and Katrin Behrens, Managing Director of the new tech service provider One.O of the Otto Group. Anyone who has browsed through the Manufactum stores knows the special consulting expertise of the "Department Store of Good Things." With the new AI-based "Shopping Advisor," this consulting expertise is now digitally adapted. "For example, a customer might ask, 'I want to make applesauce. How do I best puree it?' The Shopping Advisor picks up this question and advises just like in a human consultation," explained Alexander Peters, referring to the app. Users of the app receive a new, inspiring entry point into the unique product and theme world and can intuitively ask questions in natural language.
The AI tool was developed with Otto Group One.O, the new central service provider for technology and strategic consulting within the Otto Group. Katrin Behrens introduced it for the first time: "To develop these solutions within the group and make them available to all corporate subsidiaries, the Otto Group established the service provider One.O, which emerged from the tech service provider Otto Group Solution Provider (OSP) and the Otto Group Holding areas of Otto Group Information Technology and Digital & Consulting. Otto Group One.O delivers end-to-end services along the digital value chain for the Otto Group and external companies. A strong new partner for digital transformation and a companion in the AI era!
Witt Group: Increased Visibility in Search Engines with Generative AI
Andreas Hofmeister, Data Scientist at the Witt Group, then demonstrated how the company optimizes product descriptions to achieve better visibility in search engines—a key success factor in e-commerce. Currently, relevant search terms remain unused because they are not explicitly included in product titles or descriptions. This is particularly true for niche target groups, such as those served by the Witt Group with individuals aged 50 and older, and relevant search terms like "mother of the bride dresses." To close this gap in product data feeds, the Witt Group intelligently combines several technologies with minimal manual effort. First, existing product data and SEO databases are analyzed to identify relevant search terms with high demand potential. Based on this, generative AI automatically creates search engine-optimized product descriptions tailored to keywords, product features, and image content for maximum relevance and impact. The generated data feeds are directly, regularly, and fully automated into the webshop's content management system.
Digital Product Development: Bonprix's "Fashion Creation App" Inspires Fashion Design
Are there actually innovations in designing new fashion styles and clothing? Yes, the Otto Group has identified and developed use cases for AI here as well. Bonprix focuses on digital product development and aims to fully digitize the entire product development process—from design idea to 3D fitting and success forecasting with AI, to virtual fitting in the online shop. Jessica Külper, Head of Consulting & Innovation, and Ghazal Mohammadi, Data Scientist, presented the self-developed "Fashion Creation App," which uses generative artificial intelligence to support product managers in the time- and research-intensive design phase. Based on text prompts and uploaded images or sketches, the application generates photorealistic design proposals that can be iteratively developed further and then serve as a basis for briefings or further discussions.
Innovation as a Longstanding Tradition
These innovation projects demonstrate the potential of artificial intelligence in e-commerce and for the customer experience. In the future, the Otto Group will continue to focus on innovations with AI, particularly in the six areas of marketing, product development, logistics, customer care, individual productivity, and improving customer experience. These cases are part of a long tradition of customer-centric innovations that have made the Otto Group a pioneer in the use of AI in retail.
