Williams-Sonoma Inc. reported fiscal Q2 net revenue of $1.96 billion, up 6.7% year over year, driven partly by expanding AI-powered shopping tools across its portfolio. The company launched Otto, a new AI assistant on the Pottery Barn website, building on last year's Olive assistant on the Williams Sonoma site (Digital Commerce 360 - AI). Both assistants recommend products and connect shoppers with design services.
Since the start of the year, engagement with Olive increased 700%, while revenue associated with the assistant rose 620% (Digital Commerce 360 - AI). Customers who use Olive convert at three times the rate of other shoppers (Digital Commerce 360 - AI). Otto is showing similar patterns early in its rollout, with more than 70% of engagements resolved without transferring customers to employees (Digital Commerce 360 - AI). Williams-Sonoma is also adding personalization across its ecommerce sites; a personalized online visit now generates roughly nine times the revenue of an average visit, up from twice the revenue last year (Digital Commerce 360 - AI).
The results demonstrate that AI-driven product discovery and personalization directly correlate with conversion lift and revenue expansion, even in a stagnant housing market. For commerce practitioners, the data suggests that investing in conversational AI and personalization infrastructure can unlock meaningful revenue multipliers and justify higher customer acquisition costs through improved conversion rates.