Dive Brief:
- Mattel entered into a strategic partnership with OpenAI Thursday as part of the toymaker’s pursuit to develop AI-powered products and operations.
- The toymaker is deploying ChatGPT Enterprise across business operations to improve product development, customer engagement and innovation. Mattel did not immediately respond to a request for comment.
- “The agreement unites Mattel’s and OpenAI’s respective expertise to design, develop, and launch groundbreaking experiences for fans worldwide,” the companies said in the announcement. The collaboration will bring products to market that have “an emphasis on innovation, privacy, and safety.”
Dive Insight:
Retailers are prioritizing AI investments in the face of mounting economic pressures. Companies want a competitive edge, hoping to optimize costs, improve operations and drive innovation.
Mattel’s net sales were up 2% year over year for its Q1 2025 earnings call last month as many in the retail industry braced for continued volatility throughout the rest of the year. Mattel increased its 2025 savings target from $60 million to $80 million in an effort to offset headwinds. The company also paused its full-year 2025 guidance due to the “volatile macro-economic environment and evolving U.S. tariff landscape.”
The toymakers’ AI investment dovetails with efforts to hire the right leaders and teams. In August, Mattel tapped 25-year tech veteran Sai Koorapati to fill its CTO vacancy and continue its digital transformation. Last year, the toy company also built a dedicated team to lead AI exploration efforts. While the technology supports broader goals, it’s also part of the cost-saving initiative.
Across industries, businesses are eyeing AI as a cost optimization tool. Food industry giant General Mills told investors in February it had millions in cost savings thanks to its AI projects. Financial services company Charles Schwab credited the technology with increased savings earlier this year, too.
