What: Coresight reviews how AI is being implemented in luxury brands.

Why it is important: It is infusing at each and every level, from customer-facing to back-office operations.

AI is being used in luxury retail in 5 main ways: to create generative NFT art for customer engagement, optimize customer service via chatbots, improve operational efficiency, generate images for marketing campaigns, and develop anti-counterfeiting measures:

• Brands like Gucci, LVMH and Valentino are using generative AI to create NFT art pieces and improve customer engagement.
• AI powers chatbots and virtual assistants for customer service across many luxury brands.
• LVMH uses AI to optimize operations across 30 of its 75 brands, create digital showrooms, develop products, etc.
• Valentino used AI to generate the lookbook for its "Essentials" collection with AI-created models and imagery.
• Startups like Entrupy are developing AI-powered authentication solutions to protect luxury brands against counterfeits.

AI has high potential fordigital transformation in luxury due to brands' unique needs around personalization, exclusivity and discretion.

5 ways AI is used in luxury retail