The following is a transcription of the above video, and The Market Online has edited it for clarity.
Nextech3D.ai (CSE:NTAR) is rapidly making gains via its proprietary artificial intelligence that creates 3D models and is being utilized in major e-commerce settings. CEO Evan Gappelberg joins The Market Online to discuss the company’s patented AI technology, its growth in the 3D interactive model industry and its partnership with Amazon.
TMO: Let’s start with your patented AI tech for those new to the company. What does it do?
Gappelberg: Our generative AI technology converts 2D photos to 3D interactive models for the e-commerce industry. We’ve been working as pioneers in this space going all the way back to 2018. We’ve invested at this point almost $50 million into our AI technology and now we’re scaling our AI production of 3D models for Amazon and for other major e-commerce platforms.
TMO: Now you are recognized as an Amazon 3D model external content provider. How does that position you for growth with Amazon and what is the significance of this for investors?
Gappelberg: It’s a very significant development. Amazon is the 800-pound gorilla when it comes to e-commerce, and we are one of an elite few 3D model external content providers for Amazon. We went through a rigorous two-year training program. During that program we delivered millions of dollars’ worth of 3D models to Amazon, for Amazon.
So, if you go on Amazon’s site, a lot of the 3D models that you see, there are models that Nextech3d.ai has built for Amazon and yet we’re still at the very, very early stages. This is still just the beginning. Amazon still hasn’t really opened up their platform. They’ve been using Nextech to test their platform and we believe that they’re going to be opening up their platform very, very soon and we believe the floodgates are going to open when they do, where there’s roughly 10 million Amazon sellers and roughly 350 million products and they’re all going to convert from 2D to 3D. So it’s a very prestigious designation for our small company and we’re very excited about the revenue potential.
TMO: And Amazon is just going to continue to grow.
Gappelberg: Yeah, they are. Some people have projected that in the future, 95 per cent of commerce will be done online will be e-com. So yeah, there’s endless growth opportunities.
TMO: Now, Amazon reported that creating 3D and AR models increases engagement in sales and reduces return rates. Is this because of your technology?
Gappelberg: It is. So, Amazon has proven through years of testing that there’s a 2x improvement in purchase conversions on average when you have a 3D model versus a 2D photo, that’s what’s driving this. This is all about ROI, even though it’s super cool to see a 3D model in your space. The cool factor is it’s cool, but what’s driving it is ROI. For every 3D model that you have replacing a 2D photo, you’re getting a 200 per cent improvement in conversions and that is huge in the e-commerce industry. I don’t think there’s any other technology that provides that kind of return, video or hotspots maybe provide a 10 per cent or 15 per cent uplift, but it’s unheard of to see a 2x.
TMO: Personally, the reduction on the return rates has got to be a massive bonus as well.
Gappelberg: Absolutely. Returns plummet because you’re able to try before you’re buying, you’re able to see it in your space. And so especially for things like furniture where the size is always an issue or home appliances, you have a 3D model and an augmented reality view, which is what we provide.
You’re able to actually pull the product out of the screen, put it in your room with your phone just by scanning a QR code, you now have a 3D model in your room at home and if it fits, you’re buying it and then when it shows up, it fits because you’ve already measured and seen it and so like you said, returns go down by as much as 80 per cent and that saves a huge amount of money again for the seller.
So again, ROI, ROI, ROI.
TMO: On the business growth side, where are you seeing the immediate growth for Nextech and what does the company fit in with the e-commerce business trend over the next five years?
Gappelberg: Over the past five years, we’ve produced roughly a hundred thousand 3D models. As we go forward, we would expect to at least 10x that with the demand that’s out there and so we see an enormous amount of opportunity in this industry. Again, it’s early days, we’re just getting started with Amazon.
Amazon is the biggest player but they’re not the only player. We supply hundreds of other accounts across the globe, and we see really nothing but enthusiasm and blue-sky growth opportunities within the Amazon ecosystem but even outside the Amazon ecosystem. And so the whole world is going 3D.
I’ve been talking about this now for a number of years but it’s actually happening. It did take longer than anticipated. To be totally honest, I thought this was going to happen way sooner because sitting on the front lines, I saw the ROI, I saw the value, but it did take a long time for the industry to develop.
But we’re at the tipping point where we see just a massive growth opportunity, and Nextech is perfectly positioned because we’ve invested over the last five years in our technology and ultimately that’s driving this industry.
TMO: Is there anything else you’d like to share with the audience today?
Gappelberg: I would just say that when it comes to building new technology in new industries, timing is everything. It takes time before the technology gets widely accepted and adopted.
We’re at that time now. Whereas in the past I thought we were there, (but) we weren’t. But now we are, and we’re very, very excited about Amazon leaning in and speaking to the public about things that we’ve been talking (about) to Amazon, and they’ve been talking to us about in private.
So, I would say to our investors, stay tuned, the month of August is going to be quite pivotal for our business.
You can find Nextech3D.ai on the CSE under the symbol NTAR or head to its website at nextechar.com for more information.
Company shares were last trading at $0.10.
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