Inside Aldo’s Thriving AI and Machine Learning Plan!

  • Editor
  • July 8, 2024
    Updated
ALDOs-Innovative-AI-and-ML-Tactics-Revealed

Key Takeaways

  • ALDO collaborated with McGill University and Amazon Web Services to enhance AI-based search and recommendations.
  • Five years of anonymized customer data support ALDO’s AI models for demand forecasting and content creation.
  • Innovative footwear technology featuring pillowy sock foam for enhanced comfort is now in 75% of ALDO’s shoes.
  • AI-driven campaigns and efforts have reduced carbon emissions by 79% and eliminated over 14 million single-use bags.
  • Use of a data clean room ensures compliance with privacy regulations, future-proofing ALDO’s data practices.

Amidst the growing hype around artificial intelligence (AI), ALDO, a renowned shoe and accessories retailer, is developing its internal AI and machine learning foundations to transition from hypothetical tools to mechanisms yielding tangible business outcomes.

Last October, ALDO hosted its inaugural Retail Gen AI Hackathon with McGill University and Amazon Web Services to enhance search functionalities and product recommendations.

Fatih Nayebi, ALDO’s VP of Data and AI, highlighted the importance of a solid data foundation supported by five years of anonymized customer behaviour data. This data underpins AI models for product recommendations, demand and sales forecasting.

Nayebi stated, “We built all of those foundations to do all of this data and AI products,” he added, “We are already having our retail e-comm supply chain running based on that data. Now we’re leveraging the same data for recommendations for demand forecasting and other insights.”

Currently, ALDO employs generative AI for text, SEO, and product descriptions and predictive AI for optimizing demand and sales forecasts.

The company’s data clean room ensures privacy by broadly aggregating insights rather than storing personally identifiable information, making it resilient to changes in data privacy regulations, such as Google’s phasing out of third-party cookies.

AI is also leveraged to optimize inventory management and drive innovation. According to Daianara Grullon Amalfitano, ALDO’s Chief Brand and Product Officer, AI helps alleviate tedious tasks, allowing teams to focus on creative projects like the “Pillow Walk” technology.

Daianara stated, “When it comes to product development, we are using AI in ways that can allow the teams to be more creative and to spend their time and effort in the spaces of innovation and exploring trends,” also added. “We really are using it to alleviate some more of the tedious and mundane tasks that take away from our focus on innovation.”

Pillow Walk Technology is an innovative footwear feature developed by ALDO, designed to enhance comfort. This technology incorporates pillowy sock foam and a sturdy outsole to provide superior cushioning and support, now in about 75% of the brand’s footwear.

AI plays a pivotal role in ALDO’s marketing strategies, such as using computer-generated imagery (CGI) for its Spring 2024 campaign, which featured oversized versions of Pillow Walk styles outside its Miami store to engage consumers.

Additionally, AI initiatives at ALDO extend to sustainability, helping reduce carbon emissions by 79% since 2013 and eliminating over 14 million single-use bags from its stores since 2019 by optimizing logistics and inventory, thus reducing waste.

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However, integrating AI into business processes presents challenges, including developing internal systems or partnering with external AI providers like OpenAI or Microsoft AI.

Experts Brian Yamada and Freddy Dabaghi emphasize the importance of flexibility and adaptability as AI technology evolves. ALDO’s strategic investment in AI and machine learning underscores its commitment to innovation, efficiency, and sustainability.

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Leveraging data-driven insights and cutting-edge technology, ALDO aims to enhance customer experience, optimize operations, and stay ahead in the competitive retail landscape.

For more news and insights, visit AI News on our website.

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Dave Andre

Editor

Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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