LVMH CEO Bernard Arnault built his luxury brand on heritage products and centuries-old artistic ideas. But the 77-year-old mogul is now embracing AI, like many of his peers. Speaking at this year’s VivaTech conference in Paris, Arnault said he personally tests AI-assisted product design on a regular basis. “Every week, we have a design session with AI,” he said during an interview with VivaTech founder Maurice Lévy yesterday (June 17). “We have a young guy who makes the system work, along with me, and we design the products. Then we make them real. And maybe one of them will be a big success.”
These comments give an idea of how LVMH is working with AI as the luxury sector adjusts to soft demand following the rise of pandemic times. At VivaTech, LVMH unveiled DreamGallery, an immersive experience that demonstrates how AI is used throughout its value chain, from product creation to tracking and customer experience.
At Louis Vuitton, that includes a partnership with Comelz, an Italian leather repair equipment specialist. Companies are building a machine that creates a digital twin of leather skins, then uses AI to identify their features and suggest optimal cutting patterns. Artists can confirm or modify proposals and “retain full control over the final decision,” the company said.
Louis Vuitton’s designers also use AI tools to test colors, visualize materials and produce goods for e-commerceSoumia Hadjali, chief digital and customer development officer for the brand, during the NRF event in January. At the same time, the company draws a clear boundary around customer relations, keeping technology out of direct contact. between client advisors and consumers.
Céline, on the other hand, developed Celia, an artificial AI agent powered by MaIA, LVMH’s internal AI platform. The tool is designed for sales operations and “supports sales teams, customer services, and head office teams in their daily needs, from product information to performance analysis, after-sales support, and internal processes,” according to LVMH.
Besides individual products, the group is building a comprehensive AI infrastructure. LVMH says its AI Factory, an internal library of algorithms, is working in partnership with Stanford’s Institute for Human-Centered AI to develop tools based on “human-centered AI.” Vogue Business described the AI Factory as a set of standard algorithms that brands can adapt to recommend e-commerce recommendations, predict and support clients. Axel de Goursac, who heads the AI Factory, told the publication that the goal is “not to automate or replace people,” but to increase the workforce.
The push comes when growth increases. In its most recent quarter, LVMH reported revenue of $19.1 billion (about $22 billion), and organic sales rose 1 percent—a figure the company said would have been 2 percent if not for the Middle East conflict. Fashion and leather goods, its biggest segment and home to Louis Vuitton, Dior and Fendi, fell 2 percent. On an earnings call in April, CFO Cécile Cabanis said store traffic has slowed, but conversions are improving, adding that the group has been “working a lot, especially with AI” to drive those gains.
LVMH’s launch pipeline
Arnault has led LVMH for nearly four decades and is a co-founder and co-organizer of VivaTech, a technology conference in Paris that is now celebrating its 10th anniversary.
“I consider my team as a beginning, and we are an organization of beginnings,” he said in his interview with Lévy. “Each of my productions, at some point, was a beginning.”
He added that LVMH has acquired and worked with more than 200 startups through VivaTech since its inception. “I like meeting a lot of startups, seeing the interaction between our products and what they are creating, thinking,” he said.
The group engages startups through several channels, including La Maison des Startups, an acceleration program at the Paris campus Station F. In 2017, it also launched the LVMH Innovation Award to recognize startups developing new technologies for the luxury sector.
For participating companies, the award can serve as a gateway to the LVMH ecosystem. Winners are invited to exhibit at the LVMH Lab during VivaTech and speak to a jury of digital experts. The winners receive trophies made by Tiffany & Co., as well as support from LVMH’s investment experts and opportunities to develop relationships with the group’s brands. Both winners and runners-up can join La Maison des Startups.
This year, LVMH has nominated three winners of the Innovation Award at VivaTech. Paris-based Fairly Made received the Best Result Award for its supply chain transparency and environmental impact platform. The UK’s Synthesia won the Best Business Award for its AI video tools, while New York’s Bluefish AI took home the Most Promising Award for a platform that tracks brand image and brand positioning across AI engines. All three companies already work with LVMH houses, according to Vogue Business.
