Gap buys AI tech business
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Gap is investing on AI and machine learning technology through the acquisition with the New York and Tel Aviv-based start-up Context-Based 4 (CB4).
CB4’s technology has been implemented by several fashion retailers, including Levi’s, Urban Outfitters, Lidl, and Kum & Go. Gap says the acquisition will help it transform its retail operations and improve the customer experience by enhancing predictive analytics and demand sensing.
“We believe artificial intelligence and machine learning will shape the future of our industry,” said Sally Gilligan, chief growth transformation officer and head of the strategic growth office at Gap.
“We understand the impact and the wide applications their science can have across sales, inventory and consumer insights, as well as its potential to unlock value and enhance the customer experience.”
Since moving to the cloud last year, Gap has increased its investments in technology to enable growth and innovation that can impact its entire portfolio of brands. The value of the CB4 deal has not yet been disclosed.
Before acquiring CB4, Gap bought e-commerce startup Drapr, which powers 3D-fit technology and virtual fitting rooms to reduce returns of online sales. Its strategic growth office also participated in the latest funding round for Obe Fitness, a digital fitness platform that partners with Gap’s Athleta Brand to bring entertainment, pop culture and design to fitness.
Questions & Answers
Q.Which other businesses have used CB4's technology?
Which other businesses have used CB4's technology?
CB4's technology has been implemented by several fashion retailers. These include Levi’s, Urban Outfitters, Lidl, and Kum & Go, indicating its use across different retail sectors.
Q.What is the primary goal of Gap's acquisition of CB4?
What is the primary goal of Gap's acquisition of CB4?
Gap aims to transform its retail operations and improve the customer experience. This will be achieved by enhancing predictive analytics and demand sensing, using CB4's artificial intelligence and machine learning.
Q.Has Gap made other technology investments recently?
Has Gap made other technology investments recently?
Yes, Gap bought e-commerce startup Drapr, which offers 3D-fit technology and virtual fitting rooms. Its strategic growth office also invested in Obe Fitness, a digital fitness platform that partners with Gap’s Athleta brand.
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