Shinsegae Partners with US Reflection AI: Integrating AI into Six Major Retail Sectors

Shinsegae Group, after initiating plans to establish the largest AI data center in Korea in collaboration with the U.S. artificial intelligence company Reflection AI, has also agreed to jointly launch a project to integrate AI across the entire retail sector, including product sourcing, inventory management, and customer management.

On April 17, Shinsegae Group and Reflection AI announced, "Both companies will implement an AI-based retail business model optimized for the future of distribution, aiming to enhance productivity and increase customer satisfaction."

(From left) Missha Laskin Reflection AI CEO, Howard Lutnick, U.S. Secretary of Commerce, and Yongjin Chung, Chairman of Shinsegae Group, are taking a commemorative photo after signing the contract at the Memorandum of Understanding (MOU) ceremony between Shinsegae Group and Reflection AI held last month. Provided by Shinsegae Group

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The two companies have identified six retail areas where they will apply AI: from product sourcing, ordering, pricing, logistics, inventory management, to customer management. This collaboration aims to incorporate AI into virtually every stage of retail business operations. By applying AI throughout retail operations, the companies explained that they expect to supply customers with the products they most desire at the right time and to sell them at 'optimal prices.'

Previously, on March 17, Shinsegae Group and Reflection AI signed a memorandum of understanding (MOU) in San Francisco, agreeing to build an AI data center in Korea with a power capacity of 250MW. Shinsegae Group stated that this is the largest AI data center ever, surpassing any built or planned in Korea to date. The project will be carried out in phases, gradually increasing the power capacity. In addition, by jointly operating the AI data center, the companies plan to leverage synergies between Shinsegae Group's existing retail business and AI, focusing on 'retail innovation through advanced AI.'

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Leading Shinsegae Group’s AI-driven retail innovation is Emart, the group's retailer with the widest product range and most diverse customer interactions. Emart’s task force will meet with Reflection AI at the end of this month during their visit to Korea to begin discussions on implementation strategies. Reflection AI, led by CEO Missha Laskin and project team members, will not only meet with Emart but also hold workshops with Shinsegae Group executives. At these workshops, discussions on the business model for building and operating the AI data center are expected to be further detailed.

Reflection AI was founded in February 2024 by a group of AI experts, including CEO Missha Laskin, a core developer of Google DeepMind, and CTO Ioannis Antonglou, one of the main developers behind AlphaGo. In October 2025, the company was valued at $8 billion (approximately KRW 12 trillion) and secured $2 billion (about KRW 3 trillion) in investments from companies including NVIDIA.

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A Shinsegae Group representative stated, "Based on our collaboration with Reflection AI, we will make AI a new pillar of our group’s future vision, while rapidly driving innovation in our existing businesses through AI to achieve sustainable growth and greater customer satisfaction."

Meanwhile, Shinsegae Group announced that it has decided to suspend its discussions on collaboration with OpenAI, the developer of ChatGPT, in order to quickly expand its partnership with Reflection AI in the retail sector and efficiently pursue the construction of the AI data center. Earlier this month, Shinsegae Group and OpenAI announced an MOU for the development of a ChatGPT-based 'end-to-end AI commerce' model covering the entire shopping process for all Emart products, from search and payment to delivery. A Shinsegae Group official explained, "As we expand our collaboration with Reflection AI, there is a possibility of business area overlap, so we made this decision as part of a 'selection and focus' strategy."

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