Naver strengthens AI capabilities in product recommendation.
Why It Matters: Naver, a dominant force in the AI space, is making significant strides in refining its user experience.
By seamlessly integrating its proprietary AiTEMS technology with another cutting-edge AI tool, HYPERCLOVA, Naver is poised to make breakthrough advances in product recommendation.
The Key Points
- Innovative customization: At the heart of Naver's update is the introduction of 'customized blocks.' These are designed to meticulously interpret a user's shopping behavior, ensuring product recommendations are tailored to individual preferences and supported by a clear rationale.
- Rising Demand: A notable indicator of the growing market appetite for AI-driven personalized shopping is the 30% year-over-year increase in AI-recommended product transactions recorded in June.
- Effectiveness Demonstrated: Preliminary testing provides a promising glimpse into the system's effectiveness. There's been a 27% increase in click-through rates for the newly introduced personalized block, demonstrating its superiority over traditional recommendation models.
- Empowering SMEs: Naver's technology transformation isn't just about individual users. The broader impact is seen in how small and medium enterprises (SMEs) benefit. With an impressive 35% recommendation rate for lesser-known SME products, Naver is leveling the playing field and allowing niche products to gain significant visibility.
The Big Picture: Naver's commitment to innovation in AI is evident.
By continually refining their product recommendation systems, they're proactively responding to the evolving demands of the digital marketplace.
While individual users get a more personalized shopping experience, SMEs are also put in a more advantageous position.
The overarching goal is clear: increase user satisfaction and drive SMB growth through technological excellence.
With a history of AI-driven initiatives dating back to 2017, Naver's current efforts reaffirm its position as a pioneer in personalized AI recommendations.