Bernard Arnault, CEO of LVMH, built his luxury collection on heritage brands and centuries-old craft concepts. But the 77-year-old mogul is now embracing artificial intelligence, like many of his peers. Speaking at this year’s VivaTech conference in Paris, Arnault said he personally experiments with AI-assisted product design on a regular basis. “Every week, we have a design session with AI,” he said during an on-stage conversation with VivaTech co-founder Maurice Levy yesterday (June 17). “With a young man who implements the program, and with me, we design the products. And then we make it a reality. And maybe one of them will be a huge hit.
The statements offer a glimpse into how LVMH is approaching artificial intelligence as the luxury sector adjusts to weak demand after the pandemic-era boom. And at VivaTech, LVMH unveiled DreamGallery, an immersive experience showcasing how AI is applied across its value chain, from product creation to traceability and customer experience.
At Louis Vuitton, this includes a partnership with Commels, an Italian company specializing in leather processing machinery. The companies are developing a machine that creates a digital twin of leather, then uses artificial intelligence to determine its characteristics and suggest ideal cutting patterns. Craftsmen can then validate or modify the suggestions and “Retaining full control over the final decision,The company said.
Louis Vuitton designers also use artificial intelligence tools Color testing, material perception and Producing e-commerce assetsSomaya Hadjali, the brand’s executive director of digital and customer development, said during an NRF event in January. At the same time, the company draws clear boundaries around the customer relationship, keeping technology out of direct interactions Between customer advisors and shoppers.
Meanwhile, Celine has developed Celia, a custom AI agent powered by MaIA, LVMH’s in-house AI platform. The tool is designed for retail operations and “supports sales, customer service and head office teams in their daily needs, from product knowledge to performance analysis, after-sales support and internal procedures,” according to LVMH.
Beyond individual brands, the group has built a broader AI infrastructure. LVMH says its AI Factory, an in-house library of algorithms, works alongside its partnership with the Stanford Human-Centered AI Institute to develop tools rooted in “Human-centered artificial intelligenceVogue Business described the AI Factory as a set of modular algorithms that brands can adapt for e-commerce recommendations, forecasting and customer advisor support. Axel de Gursac, who leads the AI Factory, told the publication that the goal is “Do not automate or replace humans,“But increase staff.
This push comes as growth stops. In the latest quarter, LVMH reported revenue of 19.1 billion euros (about $22 billion), with organic sales increasing 1 percent — a figure the company said could have been 2 percent if not for the conflict in the Middle East. Fashion and leather goods, its largest division and home to Louis Vuitton, Dior and Fendi, fell 2 percent. On an earnings call in April, CFO Cecile Cabaniss said store traffic was down, but conversion was improving, adding that the group was “working a lot, especially with artificial intelligence” to achieve those gains.
LVMH’s startup pipeline
Arnault has led LVMH for nearly four decades and is also a founding shareholder and co-founder of VivaTech, the Paris technology conference now celebrating its 10th anniversary.
“I consider my group a startup, and we are a group of startups,” he said in his conversation with Levy. “Every one of my brands was, at one point, a startup.”
He added that LVMH has discovered and worked with more than 200 startups through VivaTech since its inception. “I like to meet a lot of startups, to see the interaction between our brands and what they are creating and what they are thinking about,” he said.
The group engages startups through several channels, including La Maison des Startups, an accelerator program at its Paris startup campus Station F. In 2017, it also launched the LVMH Innovation Prize to honor startups developing new technologies for the luxury sector.
For participating companies, the award can serve as a gateway into the LVMH ecosystem. Finalists are invited to exhibit at the LVMH Lab during VivaTech and pitch to a jury of digital experts. Winners receive prizes designed by Tiffany & Co., along with support from LVMH’s investment specialists and opportunities to develop partnerships with the group’s brands. Both winners and finalists can also join La Maison des Startups.
This year, LVMH named three winners of the VivaTech Innovation Awards. Paris-based Fairly Made received the Best Impact Award for its supply chain transparency and environmental impact platform. UK-based Synthesia won Best of Business for its AI-powered video tools, while New York-based Bluefish AI took home the Most Promising award for a platform that tracks brand image and product placement via AI engines. All three companies We already work with LVMH homes, According to Vogue Business magazine.
