Share to Facebook Share to Twitter Share to Linkedin LVMH CEO French Bernard Arnault (R) and Morgan Mao of FancyTech company, winner of LVMH Innovation ...
[+] Awards 2024at VivaTech. In a previous article , I explained why generative AI (GenAI) has taken the world by storm and indeed, the luxury business too. I structured luxury brands’ current experiments into four distinct, mutually reinforcing types of applications.
I explained that, like any technology, GenAI is not an end per se. What matters when deciding where to experiment with this technology is to define first the strategic purpose and vision. But here is the elephant in the room: is Gen AI worth the craze, considering the nature of luxury brand management? Luxury is all about the human genius and attention to details, from craftmanship to service.
It’s a business where artistic directors lead trends, not follow them. Its artistic creations and brands are carefully copyrighted to limit copycats and counterfeiting. It’s a business that needs to cultivate a certain mystique to thrive.
GenAI can potentially uproot all this. Or can it really? There are limitations and even outright doubts about the technology. So, it might be a mistake for luxury brands to divert most of their resources to GPT because it is the latest craze, and abandon their multi-year efforts to beef up their analytics and machine learning capabilities.
What is certain is that a lot will depend on how GenAI turns out to be used and what goes on.