AI Briefing: How Priceline and other e-commerce companies are approaching generative AI – Digiday

Beyond adding just a few new generative AI tools, some companies are using large language models to overhaul entire platforms for customers.

Last week, Priceline added more features for Penny, an AI travel assistant that debuted last June. When it first was launched, Penny could only help with finding accommodations, but now it can help find flights, car rentals and vacation packages. Built with OpenAIs GPT-4 and Googles Vertex AI, updates in the online travel agencys trip intelligence suite include using Penny find destinations, generate itineraries and modify plans directly with the chatbot.

According to Pricelines svp of strategy and brand marketing Lesley Klein, the company is testing generative AI in other parts of the business including paid and organic search, messaging formats and various creative assets.

We as a company were very early and enthusiastic about embracing the possibility of generative AI, Klein told Digiday. Theres no denying that it is going to change every facet of business and life, so we didnt want to be shy about it.

Penny is trained on a range of data sources: high quality content, first party data, search data, on-site behavior, etc. Its also plugged into various APIs to help answer questions beyond Priceline. It might also help with other parts of Pricelines marketing strategy. For example, Penny might someday help identify psychographic and behavioral data that wouldnt have been previously clear.

Instead of beginning with the early steps travelers take when planning a trip, the company started at the end, according to Priceline chief product officer Kevin Heery. When people check out, Priceline asks if theres anything else they want to know. Are pets allowed? Whats the cancellation policy? Do nearby restaurants meet dietary needs?

The approach helped to get to the real heart of what people might be worried about, Heery said. And while Priceline expected a conversion deficit from the distracting questions, that never happened.

It really helped us as we move up the funnel from checkout, Heery said. Then we moved up to the details page where people start to think about the position of a hotel. Weve now gone up to the home page, and who knows what people will ask on there?

Giants and startups alike are adding more ways to help consumers, enterprise customers and employees. One startup that debuted last week is Sierra, co-founded by former Salesforce co-CEO Bret Taylor, which promises to help people use AI agents to perform various actions. Another, XGenAI, is focused on building new generative AI features for retail and e-commerce. However, some companies also have had bot-related setbacks. Last week, a Canadian tribunal ordered Air Canada to issue a refund after a chatbot gave inaccurate information in a 2022 conversation with a customer.

Generative AI is already being adopted by a number of e-commerce businesses. In a new report from Junglescout, 50% of businesses on Amazon have used AI to manage e-commerce channels. Around 34% are using AI to help with writing and optimizing listings, 14% use it for creating marketing and social content and 7% are using it for helping with keyword and SEO research.

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AI Briefing: How Priceline and other e-commerce companies are approaching generative AI – Digiday

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