TOKYO – Rakuten is significantly expanding its investment in generative AI (gen AI), aiming to personalize customer experiences and develop AI-powered assistants capable of handling complex tasks, teh company announced today. The move comes as adoption of gen AI in retail surges, with over half of retailers already leveraging the technology for customer segmentation.
A recent March 2024 report by PYMNTS Intelligence revealed that 54% of retailers surveyed have utilized gen AI to analyze transaction and payment data for customer segmentation within the last year. Moreover, a ample 73% of retailers plan to increase their gen AI usage for transaction and payment data analysis by 2026.
Rakuten’s approach, spearheaded by Product Management Senior Manager Risa Takahashi, focuses on improving efficiency for businesses, particularly those with limited resources. “Many stores with high inquiry volumes or small teams have shared how AI has made things easier and improved their efficiency,” Takahashi stated in a recent rakuten blog post.
The company’s AI platform, Rakuten AI, employs a hybrid architecture, combining proprietary Rakuten large language models (LLMs) with optimized models from external AI providers. According to Rakuten’s Head of AI, Wei Cai, the system is specifically designed with Japanese language optimization in mind, aiming to reduce costs by activating only the necessary components for each query. Rakuten AI currently operates out of Rakuten’s headquarters in Shibuya, Tokyo.
Future advancement will prioritize personalization and memory capabilities, enabling the AI to anticipate user needs and foster stronger customer relationships. “Our goal is to move beyond understanding, toward anticipating user needs and building long-term relationships that enhance the rakuten experience,” Cai explained.
Rakuten also envisions creating “AI friends” – persona-driven assistants capable of assisting with intricate tasks like trip planning or fitness regimen development. The company is taking a phased approach to implementation, prioritizing user convenience and safety. “We’re focused on gradually introducing these capabilities to prioritize user convenience and ensure a safe, intuitive experience,” Cai added.
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