“Applying AI increased product search visibility 3.9-fold” ... GS Retail reports results of startup collaboration

[Financial News] GS Retail confirmed results in areas including product search visibility and customer behavior analysis through PoCs conducted with AI startups. The company plans to expand the adoption of AI technology, based on needs in the field, to accelerate the AI transformation (AX) of its retail business.
According to industry sources on the 11th, GS Retail held a results-sharing event for the fourth cohort of its open innovation program, “The GS Challenge. Future Retail,” at GS Tower in Gangnam District, Seoul, the previous day, and announced the results of PoCs it had conducted with five AI startups for about four months since July.
Future Retail is an open innovation program that GS Retail has run with the Seoul Center for Creative Economy & Innovation since 2023. For this fourth cohort, the company first identified challenges based on the operational needs of 17 business divisions across the company, then selected startups with relevant technologies.
GS Shop applied generative engine optimization (GEO) technology with the startup Search OSAI to increase product visibility in generative AI search environments. After optimizing information on about 100,000 products for AI search and creating and publishing about 2,000 pieces of product-related content, product search visibility increased by 3.8 times and 3.9 times in the first and second PoCs, respectively.
GS25 deployed a Vision AI-based customer behavior analysis solution with the startup Mei-ai at four stores with an enhanced fresh-food offering. The system analyzes purchasing patterns by linking customer behavior data, including visitor numbers and time spent at product displays, with point-of-sale (POS) data. Accuracy on key evaluation metrics was at least 90%. GS25 plans to use the solution to improve its product assortment and store operations.
A system was also developed to help merchandise planners (MDs) identify new products. GS Retail and BuildUp Labs created a dashboard to analyze the volume of mentions, stages of spread and staying power of food and desserts gaining attention on social media (SNS).
“The fourth cohort of Future Retail was a process of working with startups to address challenges in the field and verify the applicability of AI technologies,” said Lee Seong-hwa, head of GS Retail’s New Growth Division. “We will continue to actively leverage startups’ outstanding technologies to improve the customer experience and strengthen field-driven AX that delivers tangible business results.”
[email protected] Kim Hyun-ji Reporter