Connect with us

Hi, what are you looking for?

AI

Remote interior design is IKEA’s AI-driven sales approach.

People enter an inner-city IKEA store on its opening day in Stockholm, Sweden, June 30, 2022. REUTERS/Anna Ringstrom/File Photo

IKEA is training call center personnel to become interior design experts to offer more home remodeling services and hand off simple client inquiries to Billie, an artificial intelligence bot.

After launching in Europe, Australia, and the UAE, IKEA expanded its interior design services to the UK and the US in April. Customers in the UK pay 25 pounds ($31.44) for a 45-60 minute interior design advice video call and product list or 125 pounds for three workplace design consultations, a floor plan, and 3D visualizations.

Since 2021, Ingka has trained 8,500 call center staff as interior design experts, while Billie, introduced the same year with a name inspired by IKEA’s Billy bookshelf series, has handled 47% of client calls.

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

Biesert replied, “That’s not what we’re seeing right now.”

Ingka’s remote interior design channel generated 1.3 billion euros ($1.40 billion) in income in 2022, 3.3% of the total. Ingka Group told Reuters it wants to increase that proportion to 10% by 2028 to attract Gen Z customers.

Online sales via IKEA’s website, owned by Ingka, totaled 9.9 billion euros, or 25% of total sales in Ingka’s financial year ending Aug. 31, 2022.

Investing in digital services comes as IKEA embarks on a 2 billion euro expansion in the US. Last month, rival Wayfair launched a ‘Digital Design Studio,’ a kiosk where shoppers can experiment with furniture styles and layouts in a digital room rendering.

“It’s not surprising that IKEA are now focusing on virtual sales channels – if anything, the surprise is that it’s later than it could have been,” said Jocelyn Paulley, technology lawyer and co-head of Gowling WLG’s retail sector practice in London.

She added virtual services demand significant investment to precisely depict things’ colors, textures, and sizes and reduce returns.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.
SUBSCRIBE

You May Also Like

AI

GPS ruined our sense of direction. Search engines weaken our memory. AI, scientists warn, could do the same to everything from creativity to critical...

Fashion

Welcome to Brand Breakdown, a series of comprehensive yet easy-to-digest guides to your favorite companies, with insights and information you won’t find on the...

AI

TikTok has rowed back on an AI feature which incorrectly summarised some videos on the platform, including claiming a celebrity was fruit. The company’s...

Gadgets

It can be tough to find a good gift for tech obsessives. Since they keep up with the latest releases, they probably already have...

SUBSCRIBE

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.