Temple & Webster on Wednesday used ChatGPT to power all pre-sales product inquiry live chats, using AI to write detailed descriptions of more than 200,000 products on its site, for lifestyle brands. announced Wednesday that it has increased its investment in an Israeli visual AI startup. .
In the announcement, CEO Mark Coulter noted Temple & Webster’s first investment in Israel’s Renovai in 2020, saying, “For years, we’ve been exploring the possibilities of AI, a revolutionary technology. I’m excited about sex,” he said.
“As a leading purely online retailer, we have the resources and capabilities to be at the forefront of this revolution.”
Temple & Webster has assembled a dedicated in-house team of software engineers, data scientists, and product managers to implement AI technology into all customer interactions and internal processes.
Using ChatGPT for pre-sales live chat increased customer satisfaction with that channel, increasing the number of customers adding products to their carts and the rate at which inquiries were converted to sales.
In company tests, using AI to create product descriptions (which a human team cannot do efficiently) increased conversion rates, “add to cart” rates, and revenue per visit. was also shown.
As an online-only business with no brick-and-mortar stores or face-to-face sales staff, Coulter said AI could significantly reduce Temple & Webster’s cost of doing business.
“We believe this will further enhance our competitive advantage and capture market share,” he said.
Temple & Webster has announced an additional $2 million investment in Renovai through a convertible bond.
The company has developed a tool that allows customers to visualize their purchases, and Temple & Webster said using it has also increased sales.
Temple & Webster also announced Wednesday that it will use a portion of about $100 million on its balance sheet to begin a stock repurchase of up to $30 million.
Sales in the last four weeks have increased by 10% compared to the same period last year.
“We recognized early on that customers are demanding choice and value in this inflationary environment, and we are adjusting our product offerings, promotional activities, pricing and on-site sales to reflect these changing customer needs. We’ve been adjusting well,” Coulter said.
As of 11:37 a.m. AEST, Temple & Webster shares were up 15.9% to $4.38.
