Mattel rolls out ChatGPT Enterprise | CIO Dive
The toymaker Mattel has announced its plans to leverage OpenAI’s technology in order to enhance product development and customer engagement. This move comes as retailers across various industries are prioritizing AI investments to stay competitive amidst economic pressures, with the aim of optimizing costs, improving operations, and driving innovation.
Mattel reported a 2% year-over-year increase in net sales for its Q1 2025 earnings call last month, indicating a positive trend amid the challenging retail landscape. To offset potential headwinds, the company has raised its 2025 savings target from $60 million to $80 million and paused its full-year 2025 guidance due to the volatile macro-economic environment and evolving U.S. tariff landscape.
AI Investment and Digital Transformation
Mattel's AI investment aligns with its strategic efforts to recruit top talent and build high-performing teams. The company recently appointed Sai Koorapati, a seasoned tech veteran, as its Chief Technology Officer (CTO) to drive digital transformation. In addition to this hire, Mattel assembled a dedicated team last year to spearhead AI exploration initiatives, as part of its broader cost-saving strategy.
Businesses across various sectors are increasingly turning to AI as a tool for optimizing costs. General Mills, a leading food industry player, revealed substantial cost savings attributed to its AI projects, while financial services firm Charles Schwab credited technology with driving increased efficiencies and savings.
Industry Trends and Innovations
Mattel's strategic partnership with OpenAI is a significant move in the tech-driven industry landscape. The collaboration aims to revolutionize brand engagement and drive innovation in the toy sector. This partnership reflects Mattel's commitment to staying at the forefront of technological advancements.
Despite shifts in licensing models and cost structures, programming languages remain crucial in software development. The AI and data cloud segment has also emerged as a key revenue driver, contributing $900 million in annual recurring revenue for the provider during its fiscal year.
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