Shinsegae Co.,Ltd’s ‘Hyper-Personalized AI for Customers’ Recognized by World’s Leading Academic Society
Research Conducted with Seoul National University Marks Industry’s First Acceptance at ICML
AI Shopping Technology Analyzing 200 Million Purchase Data Points… Enables Personalized Services
'Agent AI Sales Agents' to Be Introduced Next Year… Average Transaction Value Expected to Rise by Up to 46%
[Edaily Reporter KYUNG GYEYOUNG ] Shinsegae Co.,Ltd’s AI-based hyper-personalized customer analysis technology, developed in collaboration with Seoul National University, has been recognized by the world’s most prestigious AI academic society. The company plans to use this technology to develop an AI-based retail platform that provides personalized services to individual customers.
#Shinsegae Co.,Ltd announced on the 23rd that its AI-based hyper-personalized customer analysis technology—developed through over a year of joint research with Seoul National University’s Graduate School of Data Science—has been accepted as a paper at the International Conference on Machine Learning (ICML).
ICML is a world-class international academic conference where global big tech companies and researchers from leading universities present the latest AI technologies. This marks the first time that industry-academia collaborative research from Shinsegae Co.,Ltd., a Korean department store, has been featured at ICML. Shinsegae Co.,Ltd. believes this acceptance is significant not only because it signifies global recognition of the company’s AI capabilities but also because it demonstrates its ability to apply these technologies to real-world retail environments.
In this research, the company developed “AI Ready Data”—a dataset meticulously processed to enable AI to understand and learn from nearly 200 million online and offline shopping records. Moving beyond the traditional method of analyzing data by customer segments (such as age, gender, and VIP tier), the system allows the AI to independently understand and analyze diverse data points for each individual customer, including purchase history, visit patterns, and preferred brands.
By utilizing AI Ready Data, customers will see different screens even when using the same Shinsegae Co.,Ltd. mobile app. For example, a man in his 40s who enjoys watching soccer games in person will be shown promotions for sports brands and travel packages for overseas soccer matches, while a woman in her 30s who enjoys wine will be shown wine promotions and travel packages to Italian wine regions.
Preliminary simulations based on these research findings showed that applying AI-based personalized recommendation technology could increase the average transaction value by up to 46%. This demonstrates how sophisticated customer analysis translates into sales efficiency.
Shinsegae Co.,Ltd plans to introduce “AI Sales Agent,” a business-use AI analytics tool based on AI-ready data, early next year. AI Sales Agent analyzes data from the sales floor in real time to support the identification of customer characteristics and purchasing patterns, as well as product management and the development of promotional strategies.
Lee Seong-hwan, Executive Vice President in charge of Sales Strategy at Shinsegae Co.,Ltd, stated, “The acceptance of this paper is significant not only as a research achievement but also because the AI technology resulting from this research has been recognized globally.” He added, “Moving forward, Shinsegae Co.,Ltd will continue to enhance the customer experience and drive retail innovation based on AI technology, while strengthening our data-driven decision-making system to create a new retail paradigm.”
Conceptual image of an Agent AI sales agent. (Photo courtesy of Shinsegae Co.,Ltd)
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