Upstage Signs Generative AI MOU with Lotte Shopping

Upstage has signed a Generative AI Memorandum of Understanding (MOU) with Lotte Shopping to develop retail-specialized AI services. The signing ceremony was held on September 12, 2023 at Lotte World Tower in Seoul, with key executives from both companies in attendance.

Under this agreement, Lotte Shopping will support business model development and operations using its internal infrastructure, while Upstage will provide technical consulting and services related to generative AI. Lotte Shopping will also join Upstage's '1T Club' to collaborate on building a high-quality Korean LLM and fostering an independent domestic LLM ecosystem.

The two companies have already been collaborating for two years on Lotte On, operating a personalized AI product recommendation service. This service, introduced in June, recorded a 30% increase in purchase conversion rate compared to testing in January, demonstrating the effectiveness of hyper-personalized recommendation technology.

Upstage plans to accelerate the commercialization of private LLMs going forward. With models specialized in preventing data leakage and hallucination, the company aims to expand its application beyond retail into various industries, citing its industry-first private LLM development contract with e-commerce company Connectwave as part of this trend.