Williams-Sonoma's AI Assistants Drive Customer Engagement and Conversions
Home furnishings retailer Williams-Sonoma is leveraging artificial intelligence (AI) to enhance its customer service model, according to CEO Laura Alber. The company has been using AI assistants to improve the checkout experience, product discovery, and personalization across its brand portfolio.
In a recent earnings call, Alber highlighted the importance of customer service in driving business success. Despite a volatile macroeconomic backdrop, Williams-Sonoma delivered another quarter of profitability, with comparable sales rising 6.2% year over year and total revenue growing 6.7% to nearly $2 billion.
Williams-Sonoma’s AI-powered shopping assistants, Olive and Otto, are designed to provide customers with personalized product recommendations and enhance their overall experience. Alber noted that both assistants have increased consumer engagement with the company’s content, design tools, and free design service offerings.
The launch of Otto across the Pottery Barn family in August marked a significant milestone for Williams-Sonoma’s AI efforts. The assistant is equipped to help customers narrow down product options based on their specific needs and preferences, much like human sales associates. According to Sameer Hassan, chief technology and digital officer, over 70% of customer engagements with Otto are resolved without the need for human intervention.
Williams-Sonoma’s confidence in its AI tools stems from its extensive reserves of first-party data. The company has been collecting rich data on customer behavior and preferences through its proprietary tech platforms and decades of expertise in home furnishings. Hassan emphasized that this data is a key differentiator, allowing Williams-Sonoma to drive impactful results with its AI-powered assistants.
One notable example of the success of Williams-Sonoma’s AI efforts is the performance of Olive at Williams Sonoma. Customers who use Olive convert at three times the rate of those who do not. The company has taken a similar approach with Otto, which Hassan described as ‘helping you narrow down the right piece for your space.’
Early results from Otto are promising, with customers responding positively to its personalized product recommendations and design tools. Williams-Sonoma’s ability to scale personalization using AI has also yielded significant revenue gains. According to Hassan, a visit where the experience is personalized generates roughly nine times the revenue of an average visit, up from two times last year.
Alber attributed Williams-Sonoma’s success in part to its strong brands and focus on customer service. The company believes that its execution and commitment to delivering exceptional experiences will continue to drive business growth in 2026 and beyond.