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May 30, 2024

LVMH Embraces AI: Boosting Human Creativity and Craftsmanship in the Luxury Market

In Brief

LVMH addresses job displacement concerns with AI-driven technology, focusing on complementing human knowledge and utilizing strategic alliances to enhance creativity, effectiveness, and consumer experiences.

The luxury market has always been characterized by an exquisite fusion of exclusivity, legacy, and workmanship. In this case, the human touch is paramount, a symbol of the love and craftsmanship that give each piece its own distinct personality. However, even the most established businesses are seeing an approach change as a result of the waves of technological disruption that are sweeping through them. 

Striking the Right Balance: AI as an Accelerant, Not a Replacement

LVMH has taken a sophisticated and progressive stance at a time when worries about the displacement of jobs across industries due to AI-driven technology have grown. The corporation is adamant that AI should complement human knowledge rather than displace it. This concept serves as the foundation for LVMH’s strategic alliances and projects, which aim to use AI as a driver of creativity, effectiveness, and improved consumer experiences.

Axel de Goursac, the Director of AI Factory at LVMH, stated that their goal is to augment humans with artificial intelligence rather than replace them. He emphasized that the creative process remains human, but generative AI can complement that process. This idea is present in all of LVMH’s AI initiatives, demonstrating a deep awareness that the creative vision and artisanal skill of its human staff are what define the luxury sector.

LVMH Boosting Innovation and Simplifying Procedures

Within LVMH, one of the main uses of AI is to speed up and lower the cost of launching new goods. The conglomerate hopes to improve workflows from inspiration to production by utilizing generative AI algorithms, all the while maintaining the human creativity that drives each design.

Take into consideration, for example, the difficulty of creating marketing materials for a wide range of items across the many brands in LVMH’s portfolio. In the past, this process would require a significant amount of human effort, from creating high-quality movies and photographs to developing visualizations. However, this difficult work may be greatly expedited with the incorporation of AI-powered systems like FancyTech, a business that just received LVMH’s Innovation Award.

The amount of time and money needed for asset development may be decreased by using FancyTech’s generative AI models to quickly create movies from 3D product models and creative briefs. LVMH companies like Hublot, Givenchy, and Bulgari have already made use of this technology, which has allowed them to produce eye-catching visual material for e-commerce and advertising efforts with previously unheard-of efficiency.

Moreover, LVMH’s partnership with Blng, an online studio focused on jewelry visualization, is an example of how AI may improve the creative process itself. With the help of Blng’s generative AI technology, designers can quickly preview their ideas and make changes to them in real time by transforming their physical sketches into vibrant digital renderings. 

Before AI, designers were forced to wait days to see an early version of their ideas, according to Valerie Leblond, CEO of Blng. They can now do this in a couple of seconds, freeing up extra time for them to experiment, build, and collaborate with others.”

LVMH Using AI to Improve Operational Efficiency

LVMH’s AI projects extend beyond the domains of product development and marketing to encompass several aspects of the premium shopping experience. The company has improved demand forecasting, tailored customer offerings, and streamlined supply chain management procedures by utilizing AI.

LVMH has improved its consumer targeting and product alignment strategies by leveraging cloud-based AI technologies that are made possible by its cooperation with Google Cloud. LVMH can examine enormous volumes of customer data, spot new trends, and precisely customize its products to match changing market demands with machine learning algorithms.

The use of a data-driven strategy has resulted in observable advantages, including enhanced stock levels, simplified production planning, and more effective distribution tactics. As a result, by avoiding waste and needless product moves, LVMH has not only improved its operating efficiency but also lessened its environmental effect.

The strategic partnership between LVMH and Alibaba Cloud has also strengthened the company’s omnichannel capabilities in the crucial Chinese market. Through the use of Alibaba’s generative AI capabilities, such as its exclusive Qwen big language model and Model Studio (Bailian) AI model-building platform, LVMH has facilitated the development of innovative apps and services that enhance the luxury experience for Chinese customers.

Promoting Responsible AI and Innovation

Despite the diversity of LVMH’s AI efforts, one thing unites them all: the company’s dedication to supporting an innovative culture and ethical AI practices. The conglomerate has strengthened the foundations for data-driven decision-making throughout the company by establishing specialized educational programs that are available to executives, professionals, and data teams.

Furthermore, LVMH’s commitment to promoting ethical AI techniques is demonstrated by its collaboration with Stanford University’s Human-Centered Artificial Intelligence (HAI) Center. The goal of this partnership is to ensure that LVMH’s AI solutions complement human knowledge rather than diminish it by using human-centered design and interface concepts.

Aiming for sustainability, LVMH’s AI strategy goes beyond operational efficiency in light of the world’s urgent environmental concerns. Utilizing supply chain optimization and AI-powered demand forecasting, the conglomerate can reduce waste and resource consumption, helping to create a more sustainable future for the luxury sector.

Furthermore, LVMH’s acknowledgment of businesses such as Aectual, which won the LVMH Innovation Award in the Sustainability and Greentech category, emphasizes its dedication to promoting innovation in environmentally conscious activities. Using artificial intelligence (AI), Aectual’s platform analyzes data from several sources, such as environmental sensors and satellite photography, to offer suggestions and insights for the manufacturing of luxury items and sustainable design.

The LVMH and AI’s Future Direction

This conglomerate must carefully strike a balance between innovation and the preservation of its longstanding traditions as it continues to forge ahead into the new territory of AI integration. Even while AI presents a plethora of potential for customization, efficiency, and simplified procedures, LVMH must continue to retain the human touch and artisanal skill that characterize the premium experience.

The way that LVMH approaches AI education and application demonstrates this balance. The company maintains the human knowledge that drives its success while keeping its personnel at the forefront of technical innovations by investing in extensive training programs and cultivating a culture of constant learning.

Furthermore, LVMH’s strategic alliances with prominent players in the market like Alibaba, Google Cloud, and Stanford University highlight its dedication to the responsible development of AI. Through partnerships with these organizations, LVMH is able to access state-of-the-art technology while upholding moral standards and human-centered design concepts.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Viktoriia is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.

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Viktoriia Palchik
Viktoriia Palchik

Viktoriia is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.

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