• by Jennifer Jones-Mitchell , Op-Ed Contributor, October 21, 2024

Brands are already realizing the benefits of custom LLMs to enhance customer service, streamline marketing, and improve product recommendations. In fact, Market Dynamics projects the brand-owned LLM market will grow from $6.4B in 2024 to $36 billion by 2030 with a compound annual growth rate of 33%. 

Meanwhile, I predict the next frontier isn't just brands creating their own LLMs -- it's brands collaborating with adjacent companies, to create a shared LLM that provides even greater value.

As early as next year, we'll see brands with similar audiences combine their data and expertise to deliver enhanced, personalized LLMs.

The Rise of Collaborative LLMs

Unlike generic AI models trained on public datasets, brand LLMs are trained on a company's data, including messaging, products, customer service scripts and past engagements. This allows them to develop AI models that deeply understand their customer needs.

Imagine an outdoor adventure brand joining forces with complementary companies to create a seamless customer experience that goes beyond what a single brand can offer.

Here's how that might play out with some made-up examples.

Let's say “Ventura” is an outdoor retailer specializing in camping, hiking, climbing and other outdoor lifestyle activities. Ventura develops a custom LLM trained on its products, reviews, outdoor tips, safety protocols, etc. The LLM helps customers find the best gear, learn about trails and get advice on their trips.

A customer might ask, for example, “What kind of tent works for a winter camping trip in the Appalachians?” or “What are the best beginner climbing routes in Colorado?” and the LLM provides expert advice drawn from Ventura's data.

While this is already a powerful tool, the LLM’s true potential emerges when Ventura partners with other brands, enhancing the model’s capabilities beyond selling outdoor gear, embracing the complete outdoor lifestyle.

According to Rover.com, 60% of American dog owners take them camping or hiking. So, this partnership is a natural fit that makes Ventura's LLM more useful for their shared customer, extending the value of the LLM and allowing Paws to reach new customers, while giving the end-user a seamless experience.

But why stop there? Ventura could partner with another fictional example, “Fuel-Up Foods,” specializing in meal kits and nutrition for outdoor adventures. Let's say a Ventura customer asks their LLM, “What should I pack for a five-day hiking trip in Yellowstone?”

The LLM -- through the Fuel Up Foods partnership -- could recommend energy bars, electrolyte drinks, or freeze-dried meals, even tailoring suggestions based on dietary preferences like vegan or gluten-free options.

Add a Travel brand partnership and Ventura's customers could book their entire trip through the LLM. The opportunities go on and on. And each brand collaboration makes Ventura's original LLM more valuable to the end user.

The Benefits of LLM Brand Collaborations

For customers, it's clear this type of collaboration within a branded LLM offers a more holistic experience.

Instead of visiting multiple sites or apps, they have a seamless interaction where all their outdoor needs are met in one place.

From a brand perspective, it's a win-win. Ventura enhances its LLM's value by offering customers a broader range of experiences without having to develop every product in-house. Meanwhile partner brands gain exposure to new customers.

However, the greatest benefit of LLM brand collaborations is the data. Each brand gains access to valuable insights across sectors, including how their shared customer plans trips, what products they bundle together, and what additional needs arise.

This creates opportunities for future product development and even more targeted campaigns based on real customer behaviors.

In fact, I see a terrific opportunity for agencies to bring their clients together around LLM collaborations. I am already developing these partnerships for my own clients and the possibilities really are endless.

As brands begin to collaborate on custom LLMs, they will not only deliver more convenient, personalized experiences, but they can tap into new customer bases, enhance their own data, and create unique cross-promotional opportunities.

It's only a matter of time before these types of collaborations become the norm, transforming the way we interact with brands through AI.