Williams-Sonoma is seen saving tens of millions as AI agents replace human interventions with customer service

[Home furnishing store]
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Jefferies said last week's Salesforce Dreamforce event highlighted the significant upside for a retailer such as Williams-Sonoma (NYSE:WSM [https://seekingalpha.com/symbol/WSM]) from AI agents.

"The most compelling data point, in our view, was that more than 60% of chat queries will now be autonomously resolved by AI agents with accurate, personalized responses and without human intervention," noted analyst Jonathan Matuszewski. Following the adoption of new AI agent technologies, Jefferies thinks Williams-Sonoma (NYSE:WSM [https://seekingalpha.com/symbol/WSM]) can deliver a similar, if not improved, experience with fewer care center representatives.

Since customer service representatives account for about 11% of William-Sonoma's (WSM [https://seekingalpha.com/symbol/WSM]) total payroll expense, the savings could be meaningful. Matuszewski and his team set a conservative estimate of about $40 million in SG&A flexibility from AI reducing human intervention in the retailer's customer service department.

Jefferies has a Buy rating on Williams-Sonoma (WSM [https://seekingalpha.com/symbol/WSM]).

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