Ikea uses AI chatbot to support shoppers

  • July 17, 2023
  • Steve Rogerson

Dutch Ikea retailer Ingka is using artificial intelligence (AI) to provide round-the-clock support to customers in different time zones.

Using natural language processing (NLP), it can understand customer questions, provide product information, offer recommendations, and even help design whole interior spaces without human intervention.

Remote selling within the retail industry has gained significant traction in recent years. But at Ingka, the largest Ikea retailer, 8500 co-workers supported by the company’s AI powered Billie chatbot are taking the concept to new heights. The approach, powered by 80 years of Ikea life at home knowledge is helping customers and co-workers.

Billie was originally created as part of a larger strategy and human-centric and data-driven vision to provide better value to customers and co-workers. By using chatbots such as Billie, powered by AI and NLP, Ikea can use automated design systems to interact with customers in real time. These intelligent bots can understand customer questions, provide product information, offer recommendations, and even help design whole interior spaces without the need of human intervention.

“This level of personalisation is not only going to continue to improve but will enhance customer satisfaction and increase loyalty overall,” said Parag Parekh, CDO for Ingka Group.

Furthermore, Billie is available round the clock, providing support to customers across different time zones. It can also handle multiple conversations simultaneously, thereby increasing efficiency and reducing response times.

Since the rollout in 2021, Billie has continued to provide value and, from 2021 to 2023, it handled approximately 47% of customer enquiries, which translated to 3.2 million interactions dealt with by the chatbot and nearly €13m in savings thus far.

With the chatbot handling simpler enquiries, co-workers are empowered to play a more value-adding role within remote selling. So far, 8500 call centre co-workers have been reskilled on remote interior design competence, digital retail sales, building relationships, and handling unique customer inquiries that require complex problem solving.

“We’re committed to strengthening co-workers’ employability in Ingka or elsewhere through lifelong learning and development and reskilling, and to accelerate the creation of new jobs,” said Ulrika Biesèrt, Ingka’s people and culture manager.

Sales through Ingka’s remote customer meeting points reached €1.3bn at the end of 2022, accounting for 3.3% of total sales. The aim is to grow the share to 10% in the next few years.

With its growing ecommerce marketplace, Ikea continues to evolve to meet the needs of customers wherever and however they choose to shop. Ultimately, the successful integration of AI tools will be defined in the long term by a seamless interaction between responsible AI and human knowledge and expertise.