Williams-Sonoma is leveraging artificial intelligence to revolutionise its customer engagement and enhance conversion rates, as demonstrated by recent achievements using AI assistants Olive and Otto. According to CEO and President Laura Alber, the company’s AI strategies have significantly bolstered its customer service model, leading to customers who interact with Olive converting at a rate three times higher than those who do not.
AI Adoption for Enhanced Customer Experience
During the company’s Q2 2026 earnings call last week, Alber emphasised the deployment of AI to enrich the customer journey, optimise the checkout process, and personalise offerings across their brand portfolio, which includes the Pottery Barn family. Olive, launched on the Williams Sonoma site last year, and Otto, introduced for Pottery Barn in August, both play critical roles in offering product recommendations and enhancing engagement with the brand’s content, design tools, and services.
Maintaining Profitability Amid Economic Challenges
Williams-Sonoma has continued to thrive despite challenging economic circumstances, buoyed by its focus on customer service, strong brand identity, and effective execution. The company reported a 6.2% increase in comparable sales and a 6.7% rise in total revenue, reaching nearly $2 billion. Alber credited the company’s success to its strategic use of AI, which enhances operational processes while preserving the tactile and experiential nature of their products.
The Role of First-Party Data
Sameer Hassan, the chief technology and digital officer, highlighted the importance of first-party data in maximising AI effectiveness. Williams-Sonoma utilises its proprietary tech platforms and extensive data reserves to drive impactful results through AI integration, which includes the exemplary performance of its AI agents Olive and Otto. Otto has shown promise with over 70% of customer interactions being resolved without the need for human intervention.
Scaling Personalisation and AI Impact
The retailer has successfully scaled personalisation with AI, with personalised visits generating about nine times the revenue of an average interaction, compared to two times the previous year. This significant acceleration in revenue underscores the effectiveness of Williams-Sonoma’s AI strategies and its potential to transform customer engagement across its brands.
Reporting based on coverage first published by retaildive.com.