Creating competitive tech capabilities

The future
of retail with artificial intelligence

The future of retail with artificial intelligence
The future of retail with artificial intelligence

Artificial intelligence is the transformative force of our time. The Otto Group is leveraging the associated opportunities at all levels – in marketing and customer care as well as in logistics, process optimization and, above all, in customer-oriented services. “We are convinced that we can shape the future of retail with artificial intelligence. Above all, though, we focus our innovations on offering customers an inspiring and personalized shopping experience. We have a tradition of innovation,” emphasizes Petra Scharner-Wolff, who sees technology as a relevant part of her agenda as the new CEO of the Otto Group.

Manufactum: Generative AI for inspiration and product advice

AI is already a relevant component of all business processes; the e-commerce platform OTTO alone uses more than 70 AI products across virtually all value streams. The Otto Group harnesses state-of-the-art technologies and artificial intelligence in particular to enhance its business and make it more efficient. This creates a long-term competitive advantage. The Group responded to the advent of generative AI (GenAI) by systematically expanding its innovative strength in this area and has since become a pacesetter in retail.

This applies all the more to customeroriented services such as Manufactum’s virtual “Shopping Advisor”. More than almost any other retailer, Manufactum stands for a particularly high level of advisory expertise in its curated “department stores of good things”. This expertise is now being meaningfully adapted for the digital realm with the new AI-powered Shopping Advisor. It provides customers with a fresh and inspiring introduction to Manufactum’s special world of products and themes.

Fashion Creation App: AI-powered inspiration in product development
Fashion Creation App: AI-powered inspiration in product development

Witt Group: Better search results with GenAI

The Witt Group uses generative AI to exploit previously untapped SEO potential and provide customers with better search results. Search engines have persisted as a crucial success factor in e-commerce. But the true potential of relevant search terms has remained unused so far as they are not explicitly included in product titles or descriptions. This applies in particular to narrower audiences such as the over 50s that are targeted by the Witt Group. One typical example is a search term such as “dresses for mothers of the bride”. The first step is to analyze current product data and SEO databases to identify relevant terms with potential for vigorous demand.

Generative AI then automatically creates search engine-optimized product descriptions, adapted to keywords, product features and image content for maximum relevance and impact. The generated data feeds are integrated directly, regularly and fully automatically into the web store’s content management system. GenAI thus helps to provide customers with more accurate results for their search queries.

Bonprix: GenAI as an inspirational tool in the fashion design process

Customers benefit from innovations in the development of new fashion styles as well. Bonprix is focused on digital product development and pursues the goal of creating a fully digitized product development process – from the design idea to fitting in 3D and AI-powered success forecasts to virtual dressing rooms in the online store.

Doing so ensures resource-efficient workflows while maintaining the same high product quality and enabling Bonprix to respond more flexibly to trends. A milestone on this path is the selfdeveloped “Fashion Creation App”, which introduces generative artificial intelligence into the time-consuming and research-intensive design phase for fresh styles.

The app uses text prompts and uploaded images or sketches to generate photorealistic design proposals that can then be refined within an iterative workflow. Doing so allows designers and product developers to transform their creative ideas quickly and easily into visual designs, which are then used as the basis for briefings or ongoing discussions. With success: The first AI-powered styles are already available in the Bonprix web store.

The number of colleagues who regularly use ogGPT has more than doubled since its introduction.
The number of colleagues who regularly use ogGPT has more than doubled since its introduction.

Process optimization with AI

Artificial intelligence has immense potential for process optimization as well. Back in 2023, the Otto Group was one of the first German companies to build an internal, data protectioncompliant AI assistant – ogGPT. It fulfills two purposes at once: On the one hand, it is a practical tool in everyday working life which, according to internal user surveys, saves time and makes work more enjoyable.

More importantly, however, it provides all employees with a safe framework to acquire experience in handling generative artificial intelligence and developing a deeper understanding of the technology’s possibilities and limitations. Since its launch one and a half years ago, more than 9,200 colleagues actively have used ogGPT every month – and the numbers are continuing to grow.

An interdisciplinary team is responsible for the ongoing development of the AI assistant and its adaptation throughout the Group – an important contributor to its success.

The Otto Group has always emphasized the importance of bringing all employees along on the journey into the age of AI and enabling them to harness the technology responsibly and according to their specific roles.

In addition to commitment at management level, various training opportunities tailored to prior knowledge, roles and learning styles are crucial.

The Otto Group has been offering its employees a comprehensive, modular training system on digitalization and new technologies since 2019, which has been specifically expanded to include the topic of AI since 2023. In addition, there are extensive information and exchange opportunities, for example at internal conferences, in workshops and within the “DiscoverAI” community.

The evolution of ogGPT: Development of the Otto Group’s proprietary data protectioncompliant AI assistant over the past two years
The evolution of ogGPT: Development of the Otto Group’s proprietary data protectioncompliant AI assistant over the past two years

Responsible innovation

The Otto Group is aware of the responsibility that comes with the development and use of AI. This is why it has developed strategic AI guides in addition to a comprehensive cloud compliance review process that all new applications and technologies undergo prior to rollout. They are used as guidance in new AI projects and include ethical considerations, the declaration of AI-generated content and provisions on its use in accordance with data protection laws. The Otto Group and its Group companies also work closely on these topics with longstanding tech partners, are involved in alliances and are in constant dialog with experts.


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