The document discusses using AI in e-commerce, specifically for furniture retail. It outlines an agenda covering the status and use cases of AI in e-commerce, benefits and challenges, and how to implement AI. Key points include: 1. X24Factory is a furniture retailer that uses AI for product ranking, data management, and personalized recommendations to 2 million monthly users across 800 shops and 3.5 million products. 2. Popular AI uses in e-commerce include product and user ranking, pricing, search, image recognition, and chatbots. For marketplaces, AI helps with data quality, categorization, and shop ranking. 3. Benefits of AI include higher conversion rates through more relevant products

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Fundamental eCommerce A.I. in FurnTech
February-15-2018, Berlin, DE

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FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH
AGENDA
1.Introduction
2.Status of A.I. and Top Use Cases in eCommerce
3.Benefits and Challenges
4.How To A.I.?

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The World’s largest Furniture Showroom
Unique Product Data Management and
Enrichment Processes
Product ranking algorithm optimized for
relevancy, interaction and conversion
3.5M products from 800 shops for
2M monthly users
100% FurnTech
FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH
X24Factory founded in 2015 by team of
former Nvidia, HomeAway and AxelSpringer.
Supported by Founders of Trivago

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Status of A.I. and
top Use Cases in eCommerce

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HYPE-CYCLE
or
ANNOUNCEMENT
CYCLE
?
Infrastructure Tools SW Tools Application
FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH

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General eCommerce:
• Product Ranking (relevancy, relation and recommendation)
• User Ranking and Segmentation = Personalization
• Dynamic Pricing
• Freetext Search (relational processing and query)
• Image Recognition and Image Search
• Language Processing and Chat-Bots, Amazon-Echo
Market Places:
• Data Quality Management, Categorization and Structuring
• Shop-Ranking (based on signals such as user reviews)
FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH

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Benefits and Challenges

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Personalization
• Higher Product Relevancy = higher CVR
• Higher Offer Relevancy (Pricing, Promo) = higher CVR
• Higher Search-Query Relevancy = higher Product Relevancy
Product Data Recognition
• High intent users find products better in search/filters/sort = CVR
• Comparibility and Relation = higher CVR and Basket
FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH

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Gigabytes of own Live data (products, visitors, transactions) and Training data
• Time to show results / “AI patience”
• Talent: Algo-developers, A.I. supporter, A.I. datascientist, training team
Very similar users, use cases and products
to rely on integrated pre-trained models from external providers (industry specific models)
FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH

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How To A.I. ?

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FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH
DIY-SW
if it’s core to your business,
but it will take longer
Off-the-Shelf SW
if you need results faster
and don’t need a lot of
flexibility
A.I. Recipe ?

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Infrastructure Tools
Languages
• Scala (big data)
• R
• Python
DataScience Libraries:
• Deep-Learning:
• Hi-Performance data calc
• Data-Visualization:
Learning Algorithms
FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH
Cloud Services:
Amazon AWS
• Rekognition – Image Recognition
• AWS DeepLens – video recognition
• Polly – speech recognition
• Amazon Translate
Google Cloud
• Natural Language Cloud – language recognition/meaning
• Vision Cloud – image recognition
• Video Intelligence Cloud – video recognition
• Google Talk Bot
Microsoft Azure
• Bot
• Machine Learning Studio
• Cognitive Services (Analytics, Face, Computer Vision)
Facebook – API services
• Messenger - Natural Language Processing
• Messenger - Bot
High-Performance Hardware
• nVidia TitanV, Volta

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Image Recognition
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FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH
Software Tools
Marketing Campaign
Personalization
Onsite Search Tools
Onsite
Personalization

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Human Resources
careers@x24factory.com
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FUNDAMENTAL ECOMMERCE A.I. IN FURNTECH

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