E-commerce platform Lotte On to adopt Upstage's AI-based recommendation solution

By Kim Joo-heon Posted : June 5, 2023, 17:31 Updated : September 20, 2023, 19:59

[Courtesy of Upstage]

SEOUL -- Lotte On, an e-commerce platform operated by South Korea's retail giant Lotte Group, will adopt an artificial intelligence-based solution capable of suggesting products based on users' consumption patterns. Lotte ON will also work with Upstage, an AI startup that developed the solution, to increase the purchase conversion rate.
 
Upstage has showcased various types of AI solutions. Earlier this year, the company released "AskUp Lemon Sparkling Highball," a whiskey highball beverage made by Chat GPT-based AI solution. The alcoholic beverage was created based on the AI solution's advice such as proper flavor and alcohol degree for the product.
 
Upstage said in a statement that the company will provide its application programming interface (API) to Lotte On with about 39 million users. The solution, developed based on Lotte On's commerce-related data, has been tested four times since January 2023. According to Upstage, the new system's purchase conversion rate increased by 30 percent in the latest demonstration from the first one.
 
"We will reduce the psychological and physical barriers of many different business operators who want to utilize AI technology and help them use solutions more conveniently," Upstage CEO Kim Sung-hoon said in a statement on June 5. The company said it would continue to cooperate with Lotte On to improve a purchase conversion rate by 50 percent from the demonstration.   

"Starting with the personalized suggestion service, we will adopt AI technology in various sectors and present upgraded commerce technology to consumers," said Lotte On CEO Na Young-ho.
Kim Joo-heon

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