Globally, the arrival of technologies signified fresh dawn in various contexts. Undoubtedly, since technological improvements are now a part of daily life, different transformations have become apparent. Nonetheless, and this is a good thing, it keeps evolving for the benefit of people everywhere. In some ways, technology has improved life by striking a delicate balance between output and suitability (Shen et al., 2020, p.2). Luxury fashion is on-trend right now since technological advancements promise to enhance a pleasant shopping experience and pave the way for exceptional services according to various customers. More specifically, with the help of technical breakthroughs, well-known luxury fashion firms have recorded higher profits in terms of sales. This is advantageous for companies since it permits knowledgeable salespeople to guarantee that prospects advance in consumer purchasing power (Puncuh, 2022 b, p.4). Arguably, technological developments such as Artificial intelligence are fundamental in modern society. Therefore, the following is a detailed discussion of artificial intelligence applications in luxury, opportunities, challenges, and recommendations.
Initially, the idea of implementing artificial intelligence in luxury did not appear viable among the leading corporations in the fashion industry. However, since the contemporary era is a transformative century, the adoption of artificial intelligence is an idea that can change the business model, generate considerable revenues, and spur industrial growth at all times, especially through increased online sales (Puncuh, 2022a, p.28). Organizations that integrate artificial intelligence are more likely to attain transformations, alter ineffective models, and introduce fundamental models that could be useful to an organization. Globally recognized fashion brands are implementing relevant measures such as incorporating Artificial Intelligence into the design process. Artificial intelligence is instrumental in collecting pertinent data on clients, identifying their choices and concerns, and meeting their varied needs. Based on the particular style, colors, and fabric, they assist consumers in selecting clothing. People in this position often act in ways that reflect their choices. Artificial Intelligence does not have a preferred color. Only options that meet the preferences and expectations of consumers are selected. Artificial intelligence can successfully assist clients in creating precisely what they prefer and expect, paving the way for the fashion industry to be innovative and create products that appeal to customers.
Adopting artificial intelligence in the luxury domain is one of the most important initiatives. Markedly, artificial intelligence has changed how stores identify what they can offer to customers and what they cannot. Before the adoption of artificial intelligence, inventory was often disregarded, contributing to the loss of profits. With the implementation of artificial intelligence in luxury, brands will be capable of calculating and highlighting the predominant trends in fashion and allowing leading retailers to display fashionable products that are likely to appeal to customers in a particular season (Puncuh, 2022a, p.28). Besides, fashion brands have been at the forefront of utilizing smart mirrors to give consumers a wonderful experience. Consumers can select their preferred products without needing to visit dressing rooms. The smart mirror enables consumers to attain a preferred experience by comparing multiple garments and adjusting to colors that suit their body shape and skin tone.
The fashion industry is one of the leading industries across the globe. This important industry has turned out to be one of the topmost money-making industries globally. It is worth noting that everybody wears a particular outfit that meets the expectation of different individuals. There has been an increase in demand for second-hand luxury goods (Laketu p.26). Artificial intelligence enhances experiences by enabling consumers to get wheat they prefer at a specific time. Incorporating artificial intelligence into the fashion industry is a major transformation that will bring more profits. Predicting emerging trends in the fashion industry will enable organizations to create more fashion trends(Vogue Culture, p.8). The success of any business depends on the satisfaction levels of different customers. Since the customer is key in an organization, Artificial intelligence will enable customers to get what they prefer and help them figure out whatever they prefer. Notably, this will ensure that consumers are content with the services they receive and will keep them coming back every moment they want to go shopping.
There is no doubt that artificial intelligence has fundamentally transformed luxury, evident in the fashion industry. However, there are noticeable challenges that can be attributed to artificial intelligence. Firstly, some customers still prefer traditional methods of shopping for various products (Mont Blanc, 2020, p.12). Although artificial intelligence aims to shift customers from physical stores to online stores, some populaces still want to visit actual stores where they can explore different products and interact with the actual seller. Thus, in cases where different organizations are determined to implement artificial intelligence, they may encounter resistance from customers, especially those who prefer the traditional shopping approach. Online stores are preferred in modern society (Bain, 2022, p.4). Nonetheless, Actual malls are more preferred by such customers when companies fail to advise customers and inform them that artificial intelligence will still enable them to attain a delightful experience.
The second challenge that can be apparent in the application of artificial intelligence in luxury is the difficulties customers encounter whenever they conduct a visual search. For instance, customers may find it challenging to search for a beautiful dress they have seen their friends wearing. When such customers try to search via various online platforms, they may encounter irrelevant results, and they may not be closer to accessing their preferred dresses. In such cases, customers may become frustrated and demonstrate discontent with modern technologies. The discontent can be a major setback to the different organizations that aim to adopt contemporary technologies meant to enhance their business operations in the luxury industry.
Data breaches are common challenges, especially in modern society. The implementation of artificial intelligence is dependent on accessible data and resources. Data is usually generated from different users across the globe. However, there are chances that such crucial data may be utilized for bad purposes. Data breach entails the revelation of confidential and crucial information about an individual to unauthorized parties. This is a serious challenge, particularly in the modern era. Some organizations have been accused of illegally accessing customer data and using such data for bad purposes. Another common illustration of a data breach is evident especially when crucial information is accessed devoid of the knowledge of a particular user. Data breaches are punishable according to the stipulated laws and regulations.
Organizations that strive to attain high profits should invest in a competent workforce. Limited knowledge is a major challenge this is linked to applications of artificial intelligence in luxury. The primary problem is the absence of competent personnel to implement artificial intelligence. Successful adoption of artificial intelligence relies on a competent person familiar with the dynamics of technologies and issues correlated with modern technologies. This major challenge may hamper the effective application of technology in luxury. The fashion industry is unpredictable and necessitates appropriate technological skills in unpredictable environments.
Modern technologies can be implemented to resolve problems associated with artificial intelligence. By bridging the gap between the leading experiences of visiting malls for shopping purposes and doing shopping via different online platforms, it is necessary to adopt applicable technologies. Artificial intelligence-enabled technologies such as virtual and augmented reality aim to address the abovementioned issue. Many people still prefer to visit real malls so they can shop and try on actual clothing. By using in-store virtual reality and augmented reality remedies, retailers can meet the expectations attributed to various customers. These innovations make shopping more enjoyable, which improves the whole experience.
Irrelevant search results are an emerging issue that requires urgent interventions. Similar to text-based search approaches in various cases, there is a need to implement principal search scans that can prevent cases of irrelevant searches. Visual search scans and detects photos entered by users and returns the most pertinent search results. Customers can look for what they prefer without major difficulties, making internet shopping easier and more satisfying (Vogue Culture p.8). Some Artificial intelligence-enabled applications are effective as they let users capture photos of online clothing, identify shoppable items in various images, find a matching outfit, and shop for related styles.
Personalization is needed to succeed in the luxury industry, such as fashion. A lot of customer data is accessible as such data can be accessed and subjected to analysis as a result of significant data modernization. Modern and effective technologies such as artificial intelligence are transforming key domains of the fashion industry. In particular, artificial intelligence enables fashion companies to track the purchasing patterns of specific clients when combined with fundamental corporate data (.DeAcetis, 2020, p.1). Marketers progressively use the information and computational abilities to advance technologies to understand consumer expectations and shape customer experiences centered on preferred styles, textures, purchases, and colors.
Trend forecasting is one of the major approaches that can be beneficial in recommending useful strategies that can contribute to long-term gains. The subject of trend forecasting centers on predicting the future of a market, including market trends. Consequently, trend forecasting will help reveal relevant trends, customer expectations, preferences, and customer discontent. This will enable organizations to adopt the most efficient measures to stimulate growth and attract more customers. Product designers have always used trend projections from key forecasters to create new accessories and clothes for various businesses (Marr, 2021, p.1). Using strong AI to convert real-world images shared on various platforms, particularly social media, into fundamental data, trend projection can be instrumental in predicting trends and demand and gaining a competitive advantage.
Conclusively, the introduction of modern technologies has revolutionized various operations worldwide. Modern technologies are often utilized daily to execute multiple tasks successfully within a specific timeline. Companies that aim at recording huge profits and competitive advantage are now relying on modern technological frameworks to realize these goals. Luxury fashion is particularly on-trend because modern technologies are promising to pave the way for a wonderful shopping experience amongst diverse customers. Notably, with the adoption of modern technologies, fashion companies can produce quality products that meet the preferences of various customers from different backgrounds. Accordingly, for artificial intelligence to be successfully integrated within an organization, there ought to be competent personnel, a dedicated team, and an appropriate technological framework.
DeAcetis, J.2020. How Technology Is Helping Luxury Fashion Brands Gain Traction. https://www.forbes.com/sites/josephdeacetis/2020/10/04/how-technology-is-helping-luxury-fashion-brands-to-gain-traction/?sh=6aa960ba3640
Bain, 2022. Luxury Management The second-hand Luxury Market CSR In Luxury
Laketu, T. The rise of the sharing economy. The sharing Economy concepts and the Future of Luxury
Marr, B.2021. Three AI And Tech Trends That Will Transform The Fashion Industry. https://www.forbes.com/sites/bernardmarr/2021/03/26/three-ai-and-tech-trends-that-will-transform-fashion-industry/?sh=7d449440746c
Mont Blanc, 2020. Luxury Management The New Luxury Consumer, and the future of luxury
Puncuh, E.2022 a. FINANCIAL PERFORMANCE & ANALYSIS
Puncuh, E.2022 b. FINANCIAL STATEMENTS
Shen, B., Minner, S., Chan, H.L. and Brun, A., 2020. Logistics and supply chain management in the luxury industry. Transportation Research Part E: Logistics and Transportation Review, 143, p.102095.