Williams-Sonoma’s AI Assistant Triples Shopper Purchases

Williams-Sonoma's AI shopping assistant, Olive, has seen a remarkable 700% increase in engagement since the start of the year, with revenue tied to the tool rising 620%. Samer Hassan, the company's chief technology and digital officer, revealed during a recent earnings call that customers who interact with Olive convert at three times the rate of average customers.

Revenue generated from personalized eCommerce visits is now approximately nine times higher than the average visit, up from twice last year. The company's net revenue rose 6.7% year-over-year to $1.96 billion, with comparable brand revenue accelerating to 6.2% from 4.8% in the first quarter. Williams-Sonoma has extended this AI strategy to Pottery Barn, launching an AI assistant named Otto.

Early results show that over 70% of Otto's interactions are resolved without human intervention. Otto goes beyond basic product search, coordinating furnishings within a room and considering factors like rug sizing and outdoor material durability. The AI assistant can also book design consultations or direct shoppers to designers when needed.

These results mirror the pattern established by Olive, with other retailers reporting similar outcomes. Shoppers arriving at a retailer's site from an AI referral convert 54% better than those arriving from any other source. Albertsons has seen a similar effect at a smaller scale, with customers using its conversational search increasing order value by 10%, and those using a more comprehensive assistant increasing order value by 26%.

AI shopping assistants are now the most frequently cited digital capability retailers plan to invest in over the next three years, with 37% of merchants surveyed indicating this as their primary focus, even as spending on more established digital features levels off.