Published on: March 19, 2025 / update from: March 19, 2025 - Author: Konrad Wolfenstein
Artificial intelligence: The path of island solutions to integrated digital AI strategy-Image: Xpert.digital
How the Otto Group strategically uses artificial intelligence in e-commerce
AI technologies at Otto: A gamuchang for customers and processes
The Otto Group has developed into a pioneer in the use of artificial intelligence (AI) in e-commerce in recent years. The group relies on a strategic approach instead of uncoordinated individual solutions. The systematic integration of AI technologies into the business model not only improves the customer experience, but also optimizes internal processes and strengthens the company's competitiveness in the long term.
Suitable for:
From individual initiatives to the group-wide AI strategy
Like many other companies, the Otto Group started with the first AI projects, which initially limited themselves to individual business areas. From this experimental phase, however, the group deliberately developed into a strategic overall approach. Dr. Sebastian Walter, VP Digital & Consulting of the Otto Group, the dynamics behind this change and technological progress as exceptionally fast. He emphasizes that although it is a typical hype cycle, as with many innovative technologies, it is much faster. A broad integration of AI applications in the everyday operational process can be expected within two to three years. This transition underlines how strongly the Otto Group has developed in the field of artificial intelligence.
The central knowledge: AI is not an end in itself, but must always be in the customer's service. The aim of the company is to remain a “customer-destination company” and to use artificial intelligence responsibly and always in the interests of customers. This consistent customer orientation forms the core of the AI strategy.
Otto Group focuses on six strategic areas: marketing, product development, logistics, customer care, individual productivity and improvement in customer experience. This clear prioritization enables resources to be used efficiently and achieve measurable business results.
One.O: Central platform for AI innovations
An essential component of the AI strategy is the foundation of Otto Group One.o, a central service provider for technology and strategy advice with special focus on AI. One.o bundles the existing tech and advisory skills of the OSP- Otto Group Solution Provider, the Otto Group IT and the Digital & Consulting area under one roof.
The new company is managed by Katrin Behrens and Stefan Borsutzky, who have previously held the management of the OSP. Dr. Steffen Tomschke, formerly at OSP and now at One.O, plays an important role in implementing the AI strategy as a business innovation manager.
Tomschke emphasizes the importance of AI systems that are both transparent and ethically reliable, and emphasizes how important their development and integration is for revolutionizing e-commerce. The aim is to enable companies to offer their customers unique and innovative services through the use of such technologies.
Concrete AI applications in practice
The Otto Group demonstrates its AI strategy based on specific applications at various group companies:
Manufactum: virtual shopping consultant
Manufactum has developed a AI-based “shopping consultant” that digitally depicts the high advisory skills from the stationary shops. App users can ask questions in natural language and receive personalized product recommendations. Alexander Peters, Managing Director Manufactum, explains, for example, I want to make apple sauce.
Witt group: AI for optimized search engine placement
The WITT group, specializing in fashion for the 50+ generation, uses generative AI to increase the visibility of their products in search engines. Through the analysis of existing product data and SEO databases, the company identifies relevant search terms that have so far remained unused, such as “bridal mother dresses”. The AI then automatically generates search engine-optimized product descriptions that are regularly integrated into the content management system of the web shop.
Bonprix: AI-based product development
With the “Fashion Creation App”, Bonprix pursues the goal of digitizing the entire product development process. The application relies on generative AI to support product managers in time and research-intensive design phase. Based on text inputs and uploaded images or sketches, the app generates photo -realistic design suggestions. As a result, the design process is significantly accelerated and time -consuming research is reduced.
Suitable for:
Oggt: Internal chatbot for employees
At the end of September 2023, the Otto Group launched its own internal, safe and data protection-compliant chatbot, which is based on the Chatgpt Technology of Openai and the Azure Openai Service from Microsoft. OGGPT is available around 26,000 employees of the group in the roof room and was already used by more than 4,200 employees in the first week.
Challenges in AI implementation
The implementation of a comprehensive AI strategy was not without obstacles for the Otto Group. Interestingly, the greatest challenge was not in the technology itself, but in corporate culture.
Olaf Schlüter, Head of E-Commerce at Otto, explained that when implementing the technology itself, the technology itself was not the greatest challenge of how one might be accepted. Rather, the real difficulty in the cultural adaptation within the company was to deal with the feeling of "loss of control". Before the introduction, the employees were able to intervene in many processes themselves and take over the control. However, if everything is left to a self -learning algorithm, processes and results become more difficult for you and less forecast.
This realization shows that not only technological aspects, but also cultural change in the company, must be taken into account for successful AI transformation.
The vision: ethical AI for better customer experiences
The AI strategy of which Otto Group is described by Katrin Behrens, CEO at OSP (now Otto Group One.o), follows: Our vision is to support companies with transparent AI systems in order to create unique shopping experiences for their customers. Cooperation in the IPAI Community enriches this process and enables us to participate in effective projects and innovations.
This vision underlines that the focus of the AI strategy is not on the technology itself, but on added value for customers and business processes. Transparency and ethical principles form the basis for trustworthy AI applications.
Strategic AI use as a competitive advantage
The Otto Group has successfully mastered the transition from individual AI tools to a comprehensive strategy. By bundling competencies in Otto Group One.O, the targeted implementation in six strategic areas and the consistent focus on customer added value succeeds in using AI as a competitive advantage.
The group's experiences show that the successful use of AI not only depends on the technological implementation, but also on cultural change in the company and the strategic orientation on customer needs. With this holistic approach, the Otto Group positions itself as a pioneer in the field of AI in e-commerce and creates the basis for sustainable innovations and growth.
Suitable for:
Your global marketing and business development partner
☑️ Our business language is English or German
☑️ NEW: Correspondence in your national language!
Konrad Wolfenstein
I would be happy to serve you and my team as a personal advisor.
You can contact me by filling out the contact form or simply call me on +49 89 89 674 804 (Munich) . My email address is: wolfenstein ∂ xpert.digital
I'm looking forward to our joint project.
