Secoo Holdings Ltd. (SECO) shares more than doubled in value after the company disclosed that it was researching artificial intelligence to better serve its customers.
The Chinese e-commerce platform, which specializes in luxury goods and services, said on Monday that it had begun a research project with China’s leading AI technology provider, SenseTime Group Ltd., to develop an AI system for customer service. The goal of the project is to improve customer experience by providing personalized recommendations based on individual preferences and past purchases.
This news sent Secoo’s stock soaring as investors saw potential for increased sales from improved customer service and product recommendations. Shares rose over 100% during trading hours on Monday before closing up nearly 90%. This marks the biggest one-day gain since Secoo went public in 2018.
Secoo CEO Richard Li commented on the collaboration saying “We are excited about this partnership with SenseTime as we believe their cutting edge AI technologies will help us further enhance our user experience and provide even more tailored offerings for our customers.” He added that “AI has become increasingly important in today’s retail landscape, so we are confident this collaboration will be beneficial not only to our customers but also to our business overall.”
The two companies plan to use facial recognition technology along with other data points such as purchase history and browsing behavior to create a comprehensive profile of each user’s interests and needs. This information can then be used by Secoo’s algorithms when recommending products or services tailored specifically for each individual consumer. In addition, SenseTime will provide technical support throughout the development process including training models, optimizing algorithms, testing accuracy rates etc..
This isn’t the first time Secoo has partnered with an AI company either; last year they announced a strategic cooperation agreement with Alibaba Cloud Intelligence (Aliyun). Through this agreement they were able to leverage Aliyun’s cloud computing capabilities which allowed them access larger datasets faster while improving their search engine optimization capabilities at scale across multiple platforms simultaneously .
It appears that these partnerships have paid off handsomely for both parties involved; not only did Secoo see huge gains from its stock price increase but SenseTime also saw its share prices jump 6% following Monday’s announcement . It seems clear now why both companies decided it would be mutually beneficial for them collaborate together – especially considering how quickly their respective stocks reacted positively upon hearing news of their joint venture .
As digital transformation continues apace , businesses must find ways stay competitive through innovation if they want remain successful long term . By leveraging advanced technologies like artificial intelligence , companies can offer consumers better experiences while increasing efficiency internally – something every business should strive towards achieving regardless of industry or size . With any luck , collaborations like these between tech giants like SenseTime & Seco owill continue into future so everyone can benefit from advancements made within field of machine learning & artificial intelligence alike .