IKEA Expands Interior Design Services And Combines AI Consultants To Reach Generation Z

IKEA uses artificial intelligence for design consultation. (photo: twitter @IKEAUK)

JAKARTA - IKEA trains call center workers to become interior design advisers as the Swedish furniture giant wants to offer more home repair services. They will also ask a daily customer question to an artificial intelligence bot called Billie.

In April, IKEA expanded its interior design services to the UK and the United States, after previously launching in parts of Europe, Australia, the United Arab Emirates, and other countries. In the UK, customers pay 25 (IDR 468 thousand) for interior design consulting video calls for 45-60 minutes and recommended product lists, and can pay 125 (IDR 23 million) for three workspace design consultations, floor plans, and 3D visuals.

Ingka said it had coached 8,500 call center workers as interior design advisers since 2021, while Billie - launched the same year with the name inspired by a series of IKEA book racks named Billy - has handled 47% customer questions to the call center over the past two years.

"We are committed to strengthening the work skills of co-workers in Ingka, through learning throughout life and developing new skills, as well as to accelerate the creation of new jobs," said Urrika Biesert, global manager of people and culture at the Ingka Group.

When asked if increasing the use of artificial intelligence would likely result in a reduction in the number of employees in the company, Biesert said: "That's not what we're seeing right now."

Sales of products and services through Ingka's long-range interior design channel accounted for 1.3 billion euros (Rp20.8 trillion) from Ingka's total revenue for the 2022 financial year - of 3.3%. Ingka Group told Reuters it aims to increase the share to 10% by 2028 as part of efforts to attract future Generation Z customers.

Compared to online sales of products through the IKEA website, owned by Ingka, the amount is around 9.9 billion euros (Rp158.8 trillion), or 25% of total sales in the financial year ending on August 31, 2022.

Investasi dalam layanan digital ini, saat IKEA memulai ekspansi senilai 2 miliar euro (Rp32 triliun) di Amerika Serikat, sejalan dengan rivalnya, Wayfair, yang bulan lalu meluncurkan 'Digital Design Studio' - sebuah kiosk di toko di mana pelanggan dapat berperiman dengan gaya dan tatapan berbot dalam gambaran digital ruangan.

"It's no surprise that IKEA is now focusing on virtual sales channels - if anything goes wrong, it's that they're doing it a bit late," said Jocelyn Paulley, a lawyer and head of the retail sector team at the WLG Gowling in London.

"These virtual services require significant investment," Paulley said. This is necessary, to ensure the colors, textures, and sizes of the items are accurately drawn and to minimize the return of goods.

With this change, IKEA seeks to bring a more interactive and personal shopping experience to customers. Call center worker training as interior design advisor allows them to provide more in-depth advice and recommendations to customers, while bot AIs like Billie are responsible for common questions frequently raised by customers.

Although there are concerns that the use of AI and the improvement of this virtual service can reduce human employment, IKEA emphasizes that they do not see a reduction in the number of employees today. Instead, they are committed to improving the skills and empowerment of workers in dealing with technological changes.

In addition, IKEA's move is also in line with their efforts to accommodate Generation Z customers who are active technology users and tend to look for a more digital shopping experience.

In the growing digital era, companies such as IKEA must continue to adapt and provide innovations to remain relevant and meet customer needs.