How is The Application of Artificial Intelligence in Luxury Retail Affecting The Segment's Evolution?

Artificial Intelligence & Luxury Retail

Given the pervasiveness of AI in today's society and economy, how could the luxury market be an exception?As the number of luxury retailers across the world grows, so does the challenge of keeping existing customers happy; in response, many upscale businesses have started using AI technology across the board.

The most important question is how will luxury as a segment evolve in the coming years as Artificial Intelligence percolates into the system? How can luxury still remain bespoke, exclusive and all that it is supposed to be with AI coming?

Meanwhile the following are just a few of the many crucial functions that AI now performs in high-end retail today.

Customization: AI systems are already analysing customer information in order to provide specific recommendations, such new products or style tips. This paves the way for many high-end companies, especially those with a large customer base, to provide customers with a personalised level of service EVEN at SCALE.

Artificial intelligence (AI) is helping improve inventory management by helping with demand forecasting, stock optimization, and the identification of slow-moving items.

When it comes to marketing, AI might help high-end stores figure out which products are most popular with which demographics and other insights.

Chatbots powered by AI are providing around-the-clock support for customers by fielding often asked questions and pointing users in the right direction. 

Louis Vuitton, Burberry, Tommy Hilfiger, Dior, and Estée Lauder are just a few of the high-end brands who have implemented their own chatbots.

The application of artificial intelligence (AI) in the form of facial recognition or other biometric technology is already making purchases simpler and safer for customers. (Of course these fcators really came to the fore during the height of pandemic)

There is no doubt that some luxury brands have already seen their efficiency, revenue, and satisfaction with their customers improve in a big way with the help of AI in some form or other.

A few examples of high-end retailers using AI to enhance their services and provide a better shopping experience for their clientele include:

Neiman Marcus.

Burberry: Burberry uses AI to provide individualised service to customers through in-store recommendations and hyper-specific advertising campaigns.

Louis Vuitton: Louis Vuitton uses AI to enhance its supply chain and inventory management, making sure the right products are at the right stores at the right times.

When it comes to the retail experience, both in-store and online, Ralph Lauren uses AI to personalise it for each individual customer.

The luxury fashion house Gucci has been making extensive use of artificial intelligence (AI) to improve customer support and the shopping experience by equipping its chatbots with knowledge about the company's products and locations.

Dior, the French luxury fashion house, employs AI in a remarkable manner.

With The Dior Insider AI tool engages with Dior fans, or even aspiring people. Using emojis and GIFs, Dior utilises the messaging service to personalise and create a joyful environment for its messages.

To better serve its customers, Barneys has developed an AI-powered "style assistant" to provide personalised product recommendations and streamline the shopping experience.