Dive Brief:
- Williams Sonoma and Pottery Barn parent company Williams-Sonoma is participating in the OpenAI Ad Pilot program, making the home goods company among the first to test ads on the generative AI platform, according to a Feb. 11 press release.
- As part of the partnership, Williams-Sonoma will explore how to reach customers as they make purchasing decisions. The collaboration aims to help ChatGPT users see relevant, high-end products while providing shoppers with a “trusted and transparent user experience,” the release said.
- The two companies will work together to understand how ads in ChatGPT can drive consumer engagement and maintain shoppers’ trust in ChatGPT’s responses, per the press release.
Dive Insight:
The collaboration between Williams-Sonoma and OpenAI comes shortly after the generative AI company began its advertising pilot.
In January, ChatGPT announced its plans to test ads on its platform. So far, the company is introducing ads for ChatGPT’s Free and Go users, but not for its Plus, Pro, Business, Enterprise and Education subscribers, according to its website.
In addition to Williams-Sonoma, OpenAI has enlisted another retailer for its ad pilot: Target. The retail giant this month announced plans to run ads promoting itself and its brand partners via its Roundel retail media network, featuring ads tailored to specific keywords in ChatGPT prompts.
For Williams-Sonoma, the partnership is part of the company’s efforts to adopt technology that can improve the customer experience, the home retail company said.
“AI is rapidly enhancing product discovery and becoming an integral part of how consumers make informed purchasing decisions,” Williams-Sonoma President and CEO Laura Alber said in a statement. “By collaborating with OpenAI in this early test, we have the opportunity to help develop a new advertising approach — one designed to engage consumers thoughtfully, contextually, and in a manner that aligns with how users expect to interact with information on their platform.”
Before its partnership with OpenAI, Williams-Sonoma had deployed artificial intelligence in other areas. Last March, the company began using AI to trim its need for additional employees. Later that year, the company said it would develop an AI-powered “culinary companion” to guide customers toward new products and provide advice on various lifestyle topics.
“We believe we’ll be a leader in the use of AI in our operations and in our industry and that AI will be a key component in driving record sales and margin,” Alber said last year regarding the technology.
