AI 'Hits the Spot'... Upstage Provides AI Recommendation Solution to LotteON

AI startup Upstage will provide customer preference-targeted recommendation AI to Lotte ON, a leading domestic commerce platform.

On the 5th, Upstage announced that it signed a 'Recommendation Application Programming Interface (API) Introduction and Usage Agreement' with Lotte ON. Through this contract, Upstage will provide a hyper-personalized product recommendation API for users of Lotte ON's app and website.

Upstage announced on the 5th that it has signed a 'Recommendation Application Programming Interface (API) Introduction and Usage Agreement' with Lotte ON.
[Photo by Upstage]

Upstage's recommendation AI has demonstrated outstanding performance across various metrics, including click-through rates and transaction conversion rates related to sales. In four tests conducted since January this year, the purchase conversion rate improved by 30 percentage points. The two companies aim to increase the purchase conversion rate by 50 percentage points from the initial level through performance improvements.

Starting with this contract, the two companies plan to lead AI innovation in the distribution sector by continuing discussions on applying Upstage's AI solutions such as Document AI and AskUp Suggest, including cooperation in technology exchange, education, and consulting.

Seonghoon Kim, CEO of Upstage, said, "Through this collaboration with Lotte ON, we will create a model case where various AI technologies can provide practical help in the commerce field," adding, "Upstage will lower the psychological and physical barriers for various corporate clients who want to use AI technology through the recommendation API and help customers utilize the technology more easily and conveniently."

Youngho Na, CEO of Lotte ON, stated, "We expect this collaboration with Upstage, an AI company attracting attention not only domestically but also globally, to be an opportunity for growth for both companies," and added, "Starting with personalized recommendations, we will apply AI technology to various fields and present advanced commerce technology to customers."