LVMH Bets on AI for Efficiency and Personalized Luxury Amid Industry Headwinds

LVMH Integrates AI Tools to Boost Efficiency and Strengthen Customer Loyalty

Luxury conglomerate LVMH is actively applying artificial intelligence (AI) across its operations to improve efficiency and enhance customer retention. The company employs predictive AI, generative AI, and AI agents in areas such as supply chain management, pricing strategies, product design, and marketing.

Franck Le Maol, LVMH Group IT and Technology Director, emphasized that technology is essential for achieving operational efficiency while preserving luxury’s unique appeal and delivering top-tier customer experiences.

Practical Applications of AI at LVMH

• Summarizing past customer interactions to help sales advisers craft personalized messages.
• Analyzing customer search behavior on brand websites to better understand demand.
• Adjusting prices dynamically based on currency fluctuations and other market factors.
• Identifying and addressing supply chain issues more swiftly.
• Creating “mood boards” to inspire design teams.
• Generating copy for eCommerce platforms.

Additionally, LVMH operates a companywide generative AI agent named MaIA, which handles over 2 million requests monthly from 40,000 employees. This AI ecosystem runs on a central data platform developed in partnership with Google over the past four years.

Carrie Tharp, vice president of global solutions and industries at Google Cloud, remarked that AI and agentic AI can be decisive factors for consumer businesses managing economic challenges.

Business Context and Market Challenges

LVMH recently reported a 2% year-over-year revenue decline in the first quarter, with fashion and leather goods dropping 4%. Factors affecting demand include weakening consumer confidence in China and other markets. The company is focusing on managing these macroeconomic uncertainties and implementing mitigation strategies.

According to research by PYMNTS Intelligence and AI-ID collaboration, 77% of retailers consider generative AI the most impactful emerging technology, highlighting its growing significance in retail operations.

What Operations Professionals Can Learn

LVMH’s approach demonstrates how integrating AI tools into core business functions can streamline processes, improve responsiveness, and personalize customer interactions. For operations teams, this signals the importance of adopting AI not just for automation but for enhancing decision-making and agility.

Building a centralized data platform is key to supporting AI at scale, enabling real-time insights across departments. Companies looking to implement AI can benefit from exploring training and resources that focus on practical AI deployment in operations and customer engagement.

For those interested in expanding their AI knowledge and skills relevant to operations roles, Complete AI Training offers targeted courses to help professionals navigate AI adoption effectively.