2023/9/12

• UPSTAGE AND LOTTE SHOPPING SIGNED A ‘GENERATIVE AI MUTUAL BUSINESS AGREEMENT MEMORANDUM OF UNDERSTANDING (MOU)’ ON THE 12TH

• LEADING THE DIFFERENTIATED HYPER-PERSONALIZATION TREND BY DEVELOPING GENERATIVE AI SERVICES SPECIALIZED FOR THE DISTRIBUTION INDUSTRY

• “SUPPORTING DIGITAL INNOVATION IN VARIOUS INDUSTRIES BASED ON THE WORLD’S BEST PRIVATE LLM TECHNOLOGY”

(Upstage = 2023/9/12) Upstage, Korea's leading AI startup, is joining hands with Lotte Shopping to develop a full-fledged distribution-specific generative AI service.

UPSTAGE (CEO KIM SEONG-HOON) ANNOUNCED ON THE 12TH THAT IT SIGNED A ‘GENERATIVE AI MUTUAL BUSINESS AGREEMENT MEMORANDUM OF UNDERSTANDING (MOU)’ WITH LOTTE SHOPPING. THE TWO COMPANIES HELD AN AGREEMENT CEREMONY AT LOTTE WORLD TOWER IN SONGPA-GU, SEOUL, WITH KEY EXECUTIVES FROM BOTH COMPANIES IN ATTENDANCE, INCLUDING UPSTAGE CEO KIM SEONG-HOON AND LOTTE SHOPPING VICE PRESIDENT KIM SANG-HYUN.

THROUGH THIS AGREEMENT, THE TWO COMPANIES HAVE JOINED HANDS TO DEVELOP VARIOUS NEW SERVICES USING GENERATIVE AI IN THE FUTURE AND TO STRENGTHEN COOPERATION TO DEVELOP AI SPECIALIZED FOR THE DISTRIBUTION INDUSTRY. ACCORDINGLY, LOTTE SHOPPING PLANS TO UTILIZE ITS INTERNAL INFRASTRUCTURE TO SUPPORT BUSINESS MODEL DEVELOPMENT AND OPERATION, AND UPSTAGE PLANS TO PROVIDE GENERATIVE AI-RELATED TECHNICAL ADVICE AND SERVICES. IN ADDITION, LOTTE SHOPPING DECIDED TO PARTICIPATE IN UPSTAGE'S '1T CLUB' AND COOPERATE IN CREATING A DOMESTIC LLM INDEPENDENT ECOSYSTEM BY BUILDING A HIGH-QUALITY KOREAN MACROLANGUAGE MODEL (LLM).

UPSTAGE AND LOTTE SHOPPING ARE CONTINUING THEIR COOPERATION THROUGH LOTTE ON. LAST JUNE, THE TWO COMPANIES INTRODUCED A PERSONALIZED AI PRODUCT RECOMMENDATION SERVICE DEVELOPED THROUGH TWO YEARS OF COLLABORATION, LEADING THE 'HYPER-PERSONALIZED' AI RECOMMENDATION TECHNOLOGY TAILORED TO CUSTOMERS' SEGMENTED INTERESTS AND TASTES, WHICH HAS RECENTLY BECOME A NEW TREND IN THE DISTRIBUTION INDUSTRY. THERE IS. AFTER INTRODUCING UPSTAGE'S RECOMMENDATION AI, LOTTE ON'S PURCHASE CONVERSION RATE INCREASED BY 30% COMPARED TO THE TEST CONDUCTED IN JANUARY, PROVING ITS EFFECTIVENESS.

IN THE FUTURE, UPSTAGE PLANS TO COMMERCIALIZE THE WORLD'S BEST GENERATIVE AI TECHNOLOGY, WHICH HAS SURPASSED GPT-3.5 AND RANKED FIRST IN THE WORLD, AND ACCELERATE THE DEVELOPMENT OF THE 'PRIVATE LLM' MARKET SPECIALIZED IN PREVENTING DATA LEAKS AND HALLUCINATIONS. PREVIOUSLY, UPSTAGE MADE A FULL-FLEDGED SIGNAL BY SIGNING A CONTRACT TO BUILD THE INDUSTRY'S FIRST PRIVATE LLM WITH CONNECT WAVE, AN E-COMMERCE COMPANY. IN THE FUTURE, UPSTAGE PLANS TO LEAD AI INNOVATION THROUGH PRIVATE LLM THAT CAN BE APPLIED TO VARIOUS INDUSTRIES BEYOND DISTRIBUTION.

KIM SEONG-HOON, CEO OF UPSTAGE, SAID, “WE ARE HAPPY TO BE ABLE TO WORK WITH LOTTE SHOPPING TO INTRODUCE GENERATIVE AI SPECIALIZED FOR THE DISTRIBUTION DOMAIN. BASED ON THE WORLD’S BEST PRIVATE LLM TECHNOLOGY, UPSTAGE WILL ACTIVELY SUPPORT STRENGTHENING THE DIGITAL COMPETITIVENESS OF VARIOUS INDUSTRIES SUCH AS DISTRIBUTION.” REVEALED.

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