Gen AI powers Zalora’s push for enhanced shopping experiences
This has already led to improved click and conversion rates for the group.
Online fashion retailer Zalora is harnessing generative artificial intelligence (Gen AI) through its ‘TITAN’ platform to streamline operations and enhance the customer experience.
“Generative AI is not just a trend; it's a transformative power that will enhance creativity, efficiency, and productivity across industries,” said Aashish Midha, CEO of Zalora Philippines and Indonesia, at the Retail Asia Forum 2024 held at Makati Shangri-la, Philippines on 4 October.
He said Zalora aims to personalise the shopping experience, optimise efficiency, and improve overall engagement.
Midha elaborated on TITAN, which consolidates all of the group’s AI efforts into one initiative. He explained how the project integrates AI across the value chain, using customer data such as buying history, browsing patterns, and lookalike mapping to create personalised shopping experiences.
He said this personalised approach has already resulted in improved click and conversion rates.
Early adopters of Gen AI, like Zalora, are expected to gain a significant competitive advantage through better customer experiences and cost efficiencies, said Midha.
“AI is to serve humanity, not replace it,” he said, adding that whilst AI presents excitement and uncertainties, it is fundamentally aimed at improving human experiences.
“It is not a silver bullet that will solve every problem,” he warned, urging businesses to approach AI with both optimism and caution.
AI divide
However, the adoption of AI is not without its challenges. The chief executive acknowledged the growing concerns surrounding AI, particularly the risk of creating a divide between businesses that can leverage this technology and those that cannot.
Whilst early adopters gain an advantage, Midha said there is a pressing need to ensure equitable access to AI tools.
To mitigate this, he encouraged peers in the industry to explore open-source AI products, which could lower the entry barriers and enable more businesses to benefit from AI innovations.
Security concerns
In addition to accessibility, Midha emphasised the importance of data privacy and security. The increasing prevalence of data breaches, scams, and transparency issues has left many consumers wary of digital transactions.
“It is a fight that will always stay,” he said. “And as a corporate, we stay ahead in terms of having the best security products, best protocols, and best compliances to ensure that our customer is protected.”
“I think data privacy and data security are paramount. Consumer data has to be guarded. We have very strict data protocols,” he noted.
Despite these risks, Midha remains optimistic about the future. “We should be optimistic about 2025; it’s only going to get better.”