Trends


The impact of AI within luxury brands

On September 10, 2024, Bain & Company, along with the Comité Colbert, detailed the impact of artificial intelligence within the luxury sector.
Here’s the demonstration.

A detailed analysis of new technologies within the luxury sector

Presentation - © Comité Colbert
For the third consecutive year, Bain & Company, a strategic consulting firm, and the Comité Colbert, which represents major French luxury houses, have examined new technologies within the industry. The 2024 edition of their report, dedicated to artificial intelligence, offers a detailed analysis of the progress and acceptance of these technologies within the sector, highlighting use cases that are already shaping its transformation.

A growing adoption of AI across all levels of the value chain

New material - © Comité Colbert
The study reveals that the adoption of artificial intelligence solutions, initiated by analytical AI over five years ago, is seeing promising growth. To date, luxury houses have already implemented an average of two use cases out of the twenty tested in the study. Furthermore, significant acceleration is expected in the next 12 to 24 months, with each house testing or planning to implement five additional use cases on average. Currently, larger luxury houses hold an advantage, having adopted three times more use cases than smaller houses. However, this gap is narrowing as smaller brands are now experimenting with as many applications as the larger ones. Mathilde Haemmerlé, Partner at Bain & Company and co-author of the report, notes: “There is real awareness of AI’s potential among luxury houses. The arrival of generative AI, which is more accessible and less costly than analytical AI, could help smaller houses catch up with the larger ones.”

Four main areas of AI application, at different stages of maturity

Script - © Comité Colbert
in sales forecasting optimization (adopted by 26% of houses, with 34% in the testing phase) and inventory management (23% adoption, 27% in testing).
Enhanced customer relations: Generative AI opens new possibilities for refining personalized customer interactions, complementing existing customer relationship management tools (22% adoption, 24% in testing).
Employee empowerment: Though currently not widespread (4% adoption, 49% in testing), AI knowledge management could become more common, allowing employees to focus on higher-value tasks and preserving the house’s expertise.
Creative process enhancement: This is the most controversial area, where the use of generative AI raises debates about its legitimacy. 72% of participants express opposition to integrating these tools into the creative process, fearing it may undermine the essence of luxury. However, some houses are already exploring AI for specific uses, such as inspiration or accelerating prototype visualization.

Promising prospects, aligned with the authenticity of luxury

Diamond - © Comité Colbert
According to Bénédicte Épinay, Secretary General of the Comité Colbert, “the alliance between tradition and innovation, refinement and technology, opens up fascinating possibilities where artisanal excellence meets digital advancements, leading to a quiet revolution.” Joëlle de Montgolfier, Global Director of Research and Studies at Bain & Company, concludes: “If luxury houses choose to make artificial intelligence a strategic priority, they will need to modernize their technological infrastructure, enrich their data management skills, and support their teams in adopting these tools to ensure the creation of sustainable value.”
Octobre 2024
By Sean Cloud