The ODP Corporation Enhances Customer Experience with Gen AI Data Integration

Rhea-AI Summary

The ODP (NASDAQ:ODP) has implemented Generative AI technology across its Office Depot and OfficeMax stores, significantly enhancing customer experience. The ODP Personal Assistant, an internally developed AI application, was launched in February 2023 and has since been integrated with comprehensive knowledge bases. A retail knowledge base was developed and made accessible in December 2023 on store computers and handheld devices.

Key benefits include immediate access to information, comprehensive knowledge bases, and an enhanced customer experience. Approximately 900 stores and 12,000 associates are now empowered with this AI integration, allowing for faster and more accurate customer service.

Positive

• Implementation of Generative AI technology across nationwide Office Depot and OfficeMax stores
• Development and launch of ODP Personal Assistant, an internally developed AI application
• Integration of comprehensive knowledge bases into the AI application
• Empowerment of 900 stores and 12,000 associates with state-of-the-art AI integration
• Enhanced customer experience through faster and more accurate responses

Negative

• None.

Insights

Tech Expert

The ODP 's integration of Generative AI (Gen AI) technology across its Office Depot and OfficeMax stores marks a significant step in retail innovation. By leveraging AI to enhance customer service, ODP is positioning itself at the forefront of the retail tech revolution. The implementation of the ODP Personal Assistant, which uses technology similar to ChatGPT, demonstrates a commitment to cutting-edge solutions while maintaining data security.

The integration of comprehensive knowledge bases into the AI application is particularly noteworthy. This allows store associates to quickly access information, potentially leading to increased efficiency and improved customer satisfaction. The ability to use natural language queries on handheld devices could significantly streamline in-store operations.

However, the true test will be in the long-term adoption and ROI of this technology. While the initial rollout to 900 stores and 12,000 associates is impressive, the success will depend on how effectively it's utilized and its impact on sales and customer retention. Investors should watch for future reports on productivity metrics and customer satisfaction scores to gauge the real-world impact of this AI integration.

Market Research Analyst

ODP's implementation of Gen AI technology across its retail network is a strategic move that could potentially reshape its competitive landscape. This initiative aligns with the growing trend of AI adoption in retail, which is expected to reach $31.1 billion by 2028, according to Grand View Research.

The key advantage for ODP lies in its ability to enhance customer experience through faster, more accurate service. By freeing up associates' time from information retrieval, there's potential for increased upselling and cross-selling opportunities. However, the real differentiator will be how ODP leverages this technology to gather and analyze customer data, potentially leading to more personalized offerings and targeted marketing strategies.

Investors should monitor how this AI integration impacts ODP's market share and customer loyalty metrics, especially in comparison to competitors like Staples. If successful, this could be a significant driver for long-term growth and profitability in an increasingly competitive office supply retail market.

Financial Analyst

While the implementation of Gen AI technology is promising for ODP's operational efficiency, its financial impact remains to be seen. The company hasn't disclosed the investment required for this AI integration or projected cost savings, which are important factors for investors to consider.

Potential benefits include reduced training costs for new associates, lower customer service-related expenses and improved inventory management. However, these need to be weighed against the initial investment and ongoing maintenance costs of the AI system.

Investors should look for indicators of success in upcoming financial reports, such as:

• Changes in operating expenses, particularly in SG&A
• Improvements in gross margin, potentially from better inventory management
• Increases in same-store sales, indicating enhanced customer experience

While the technology is promising, its true value will be determined by its ability to drive tangible financial improvements. Until we see concrete financial data, I maintain a cautiously optimistic stance on the impact of this initiative on ODP's bottom line.

BOCA RATON, Fla.--(BUSINESS WIRE)-- The ODP Corporation ("ODP," or the "Company") (NASDAQ:ODP), a leading provider of products and services through an integrated business-to-business (B2B) distribution platform and omnichannel presence, today announced the implementation of cutting-edge Generative AI (Gen AI) technology across its nationwide network of Office Depot and OfficeMax stores. This technology has significantly enhanced its customer experience since its last announcement, and further demonstrates the Company’s continued commitment to adopting artificial intelligence technologies.

The ODP Personal Assistant—an internally developed AI application that leverages the same technology as ChatGPT and maintains all data within ODP's secure environment—launched in February 2023 to thousands of associates across all business units. Based on early successes realized after its launch, the decision was made to integrate comprehensive knowledge bases into the application, to help associates obtain quick answers to common questions to enhance the service provided to customers. To further enhance customer service in the Company’s store locations, a retail knowledge base was developed and has been accessible since December 2023 on store computers and handheld devices used by store associates.

"We are thrilled about the potential of Gen AI to revolutionize our customers’ experience," said Gerry Smith, chief executive officer of The ODP Corporation. "This approach highlights our dedication to technological advancement and enhances our ability to streamline activities and tasks within our stores. We’re committed to further exploring transformative AI applications across our entire organization."

Key enhancements and benefits of the knowledge base integration in retail stores include:

• Immediate Access to Information: Associates can seamlessly interact with the ODP Personal Assistant application using natural English-language queries to receive prompt answers. This replaces traditional methods of consulting other associates or searching company portals, thus vastly improving efficiency.
• Comprehensive Knowledge Bases: Associates can leverage Gen AI technology by accessing relevant internal information ingested into Gen AI knowledge bases via the ODP Personal Assistant application. Associates can use natural language and receive immediate responses, complete with citations for the information used. This enhances associates’ abilities to assist customers. Approximately 900 stores and 12,000 associates are empowered with this state-of-the-art AI integration.
• Enhanced Customer Experience: With quick access to essential data, associates can dedicate more time to customer engagement, providing faster and more accurate responses. This allows associates to continue to provide world-class customer service.

This initiative has helped modernize the Company’s retail environments since the end of 2023, enriching the customer experience and paving the way for future applications of AI-related technologies.

About The ODP Corporation
The ODP Corporation (NASDAQ:ODP) is a leading provider of products, services, and technology solutions through an integrated business-to-business (B2B) distribution platform and omnichannel presence, which includes world-class supply chain and distribution operations, dedicated sales professionals, a B2B digital procurement solution, online presence and a network of Office Depot and OfficeMax retail stores. Through its operating companies Office Depot, LLC; ODP Business Solutions, LLC; and Veyer, LLC, The ODP Corporation empowers every business, professional, and consumer to achieve more every day. For more information, visit theodpcorp.com.

Office Depot is a trademark of The Office Club, LLC. OfficeMax is a trademark of OMX, Inc. ODP Business Solutions is a trademark of ODP Business Solutions, LLC. Veyer is a trademark of Veyer, LLC. Varis is a trademark of Varis, Inc. ©2024 Office Depot, LLC. All rights reserved. Any other product or company names mentioned herein are the trademarks of their respective owners.

FORWARD LOOKING STATEMENTS – THE ODP CORPORATION
|This communication may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements or disclosures may discuss goals, intentions and expectations as to future trends, plans, events, results of operations, cash flow or financial condition, or state other information relating to, among other things, The ODP Corporation (“the Company”), based on current beliefs and assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “estimate,” “expect,” “forecast,” “guidance,” “expectations,” “outlook,” “intend,” “may,” “possible,” “potential,” “predict,” “project,” “propose” “aim” or other similar words, phrases or expressions, or other variations of such words. These forward-looking statements are subject to various risks and uncertainties, many of which are outside of the Company’s control. There can be no assurances that the Company will realize these expectations or that these beliefs will prove correct, and therefore investors and stakeholders should not place undue reliance on such statements.

Investors and shareholders should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the U.S. Securities and Exchange Commission. The Company does not assume any obligation to update or revise any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240828392386/en/

Jennifer Robins

Media Relations

Jennifer.Robins@theodpcorp.com

Swati Joshi

Media Relations

Swati.Joshi@theodpcorp.com

Source: The ODP Corporation

FAQ

What is the ODP Personal Assistant and when was it launched?

The ODP Personal Assistant is an internally developed AI application that leverages ChatGPT-like technology. It was launched in February 2023 to thousands of associates across all business units of The ODP (NASDAQ:ODP).

How has The ODP (NASDAQ:ODP) implemented Generative AI in its retail stores?

The ODP has integrated a retail knowledge base, accessible since December 2023, on store computers and handheld devices used by associates in Office Depot and OfficeMax stores. This allows associates to access information quickly using natural language queries.

What are the key benefits of the Generative AI integration for ODP (NASDAQ:ODP) retail stores?

Key benefits include immediate access to information, comprehensive knowledge bases, and an enhanced customer experience. Associates can provide faster and more accurate responses, dedicating more time to customer engagement and improving overall service quality.

How many ODP (NASDAQ:ODP) stores and associates are using the new AI technology?

Approximately 900 stores and 12,000 associates of The ODP are empowered with the state-of-the-art AI integration, which includes the ODP Personal Assistant and the retail knowledge base.