An alliance of the opposites: When AI and Data Analytics join forces with luxury for a better future
The technological upheaval today has affected everyone alike and the luxury industry is no exception. However, with a DNA that prides on history, heritage and traditions that have long been unchanged, luxury Maisons and conglomerates have been comparably slower in joining the wave. Thanks to the steady realisation of the way it can largely benefit many operations for luxury brands, and the results that are hard to overlook; we see a bond between timelessness and technology, where one gains its reputation by unmatched craftsmanship and creative detailing, whereas the other excels at the opposite end of the spectrum by generating a disruptive way of looking at new developments.
Perks of the pact
Everyone in the luxury industry is rethinking how to integrate information acquired by analysing the bulk of data they are sitting on, and the ones who are empowered with AI solutions are distinguishing themselves by being more informed and formulating better data-driven strategies that address not only the immediate but also long-term decisions. They want to estimate before time what to expect from their customers and competitors alike, how the brand perception is evolving in the digital space and to interpret that to their advantage. Many others know that AI has strong potential to improvise business processes but might be clueless as to how it can be deployed in their organisational structure.
The data science dominion
Data, by itself, does not add much value unless it is properly analysed and most of the companies are lacking the expertise to take its full advantage. Fortunately, the broadening realm of data scientists is here to help. But luxury brands are unclear as to whether they should maintain a data-science team in-house or outsource it to the specialists. Considering overall assets and liabilities, outsourcing comes out as a plausible solution by being more cost and time effective; with ensured expertise and efficiency to offer analytical insights that prove crucial to key decision makers for shaping their pricing, distribution and marketing strategies, while gaining a competitive advantage.
Next to expect
The current benefits of AI, including analysis of market trends, keeping track of online customer engagement and brand image awareness in real time are revolutionising the way luxury industry functions and have been a significant growth booster. Going forward, as companies would get better in capturing the value of big data and be more refined with how it is to be used across the sectors, we might witness that AI would play a bigger role by being the driving force behind the overall growth.