The role of humans in the age of AI
Every year, Google does a montage of the most searched words for that year. In 2022, the most searched word was “wordle”; in 2023 it was “deepfake”. I am predicting that the most searched words of 2024, will be “AI” or “artificial intelligence”. (Note: either double quotes or italics — either one will work)
No conversation today is complete with the mention of AI. At NRF (National Retail Federation’s biggest annual retail show) this January, AI was the theme at almost every booth, conversation and session. It did not matter how small or big the offering was — all that mattered was that you were speaking ‘AI’. No surprise there, as retail is where it needs to happen and prove itself first, by being at the forefront of all consumer experiences, put to test in stores and online, by consumers, every micromoment, of everyday.
Walmart, for example, has moved rather quickly in this space, buying several tech start-ups, while, in parallel, investing in online and in-store technologies. OpenAI allows Walmart customers to receive responses to their prompts that are specific to Walmart. With this process, the company understands the customers’ needs at a deeper level, to generate personalized responses and product suggestions.
Saks, the e-commerce arm of Saks Fifth Avenue, is also using AI for efficiency. “From a customer point of view, we want to personalize, create editorial and photography. But we must be careful and mindful of putting it in front of the customer. The technology provides lots of great things, but we have to be careful we’re not doing too much, too soon” said Saks CEO Marc Metrick.
There is no doubt that the generative AI market is ready to explode. Unlike flash-in-the-pan trends like NFTs and Metaverse, the AI boom has seen an influx of programs like Google’s Gemini ChatGPT, Salesforce’s Einstein, IBM’s Watson amongst others. The market is expected to reach $1.3 trillion over the next 10 years, from, a market size of $40 billion in 2022 (Bloomberg Intelligence). The growing demand for AI products could also add more than $280 billion in new software revenue, driven by specialized assistants, new infrastructure products, and copilots that accelerate coding. This exponential growth will be further driven with enterprises across most industries, shifting more workloads to the public cloud.
So, why all the noise around AI?
For one, it will be truly transformative in terms of its impact across several aspects of society, technology and industries. Deep learning and neural networks have enabled machines to learn from data, recognize patterns, and make decisions.
Two, AI can automate repetitive and mundane tasks, offering increased efficiency and productivity in various industries. This can free up humans and resources, to focus on more complex work.
Three, let’s talk data. Big data especially in retail, is essential to target and retain customers, streamline operations, optimize supply chain, as well as improve overall business decisions. Before the cloud was readily available, companies were limited to tracking what a person bought and when — limiting options to personalize. In recent years, the availability of massive amounts of data has become not just a driving force, but a clear mandate for AI development. Machine learning algorithms thrive on large datasets, allowing them to identify patterns and make accurate predictions.
Luxury brands such as Gucci, Louis Vuitton and Chanel are already embracing AI for big data analytics. Gucci’s global client service center uses generative AI to create conversational replies that its advisors can use to provide on-brand luxury customer experiences across every channel. The brand’s AI-equipped mobile app provides sales assistants with data about product specifications and customer purchase history, thereby refining the in-store customer experience. Additionally, AI aids in identifying new markets and optimizing product distribution, potentially elevating sales forecasts significantly.
Louis Vuitton has integrated AI with customer service, offering AI-driven chatbots and the LV App to elevate shopping experiences. LVMH has also announced its collaboration with Stanford University’s Institute for Human-Centered Artificial Intelligence Institute (Stanford HAI) to explore the applications of AI technology in its business. “Artificial intelligence is a powerful technology. We acknowledge the value that it can bring as support and complement to human talent, emotions and creativity, that are core to our Maisons.” said Antonio Belloni, LVMH Group Managing Director. “We are proud to partner team up with Stanford HAI in our efforts to learn how to leverage and manage AI potential.”
Chanel’s new lipstick color-matching tool, Lipscanner, uses artificial intelligence and virtual try-on technology, to match any color, to its nearest lipstick shade. Developed by Chanel’s Makeup Creation Studio, in collaboration with CX Lab, Lipscanner allows users to upload or scan an image of any red, pink, plum or orange color from a street sign to the petal of a flower. In return, the app provides a range of Chanel lipsticks in the same shade.
Ever wondered if the Balenciaga bag you bought from a vintage reseller was legit? You may now be able to know for sure, thanks to AI. Entrupy is a technology service that uses AI to authenticate designer handbags and sneakers in the resale market to ensure that customers are buying the real thing. As of 2022, the global market for counterfeits (goods that bear a “spurious mark that is identical with, or substantially indistinguishable from, a registered trademark”), reached an estimated $4.2 trillion, with luxury/fashion goods making up a significant portion of that total. AI can ensure luxury brands lose neither revenue nor goodwill, while maintaining their authenticity.
Finally, let’s talk creative. After all, art is as human as it gets. AI continues to transform this industry as well. Which means, your next creative campaign and big idea might not come from BBDO, Ogilvy, or Publicis. It might just come from artificial intelligence. As I write this, brands like Valentino and Ralph Lauren have already started testing gen AI for copy, editing and even campaign graphics. Maison Valentino’s new Essentials line, last year, for example, was shot entirely with AI tech. Exploring the relationship between artificial intelligence and fashion, the imagery celebrates the relationship with technology and its game-changing possibilities.
French fashion brand Casablanca unveiled a campaign created entirely from artificial intelligence. Bridging the gap between nature and technology, the ad campaign featured virtual models donned in the western-wear-inspired collection in front of futuristic architecture, with backdrops harken to South America. Is this the future of image-making, in general and for luxury, in particular?
Perhaps the most important question is — what is the role of us 8.1 billion humans now? Are machines going to take over the world? Will artificial intelligence be more revered than human intelligence? Will humans continue to remain relevant? Is the fear real?
For one, will AI displace human jobs that today? Especially the ones screaming for automation? No questions about it. As machines become more capable of performing routine tasks, there is an understandable anxiety about job loss and the need for reskilling the workforce.
Two, the increased use of AI in decision-making processes raises ethical questions. Biases in algorithms, the lack of transparency, and the potential for discrimination can lead to unfair or harmful outcomes, particularly in areas like hiring, criminal justice, and finance.
Third, the idea of machines making autonomous decisions without human intervention can be rather unsettling. Concerns about losing control over AI systems and the potential for unintended consequences further contribute to these fears. Of course, misinformation or a lack of understanding about how AI works, does not help either. The perceived complexity of AI systems may make them seem unpredictable and uncontrollable. This further amplifies concerns.
Lastly, many fear that highly advanced AI, if not properly controlled, could pose existential risks to humans. This concern is often depicted in popular culture scenarios and shows such as Black Mirror, where super intelligent AI systems surpass human intelligence and act against humans.
The U.S. has been a global leader in AI development and adoption, with major tech companies, research institutions, and a robust startup ecosystem. Silicon Valley continues to be a hub for AI innovation. It’s essential to note, that, while some jobs may be automated, AI will also continue to create new opportunities, while enhancing productivity in various industries.
Sujit D’Mello of Microsoft, who I recently hosted at my NYU Stern School of Business class, recently, said and I quote, “Over the past two decades, AI has predominantly been associated with Machine Learning, resulting in the creation of various products like the Roomba, Segway, Vaymo, and DuoLingo. In each of these instances, the primary outcome has been to enhance human productivity by freeing them to concentrate on more critical tasks. In the current era of Artificial General Intelligence, pioneered by ChatGPT, we anticipate significant productivity leaps across language comprehension, image analysis, video processing, and audio understanding. With this newfound efficiency, we aspire to address longstanding global challenges, such as disease cures, healthcare improvements, climate change mitigation, and geopolitical complexities. AI remains an enduring catalyst for human progress!”
So, what does the future hold? A willing, magical collaboration with AI. Less mundane, more critical thinking. For me that’s enough to extend my hand out and partner. Chat GPT, are you listening?
Anika Sharma is an accomplished technology consultant and global digital expert, recognized as №17 on the Top 50 Global Digital Thought Leaders & Influencers. With 20 years of experience in the CPG, retail, beauty, luxury and T&H space, with a focus on eCommerce and Data, she continues to lead, large-scale technology and digital transformation initiatives for both, brick and mortar and digital-first brands. Assistant Professor of Technology at New York University’s Stern School of Business, Anika takes her passion for technology and digital to the classroom, teaching Digital Marketing, Digital Strategy, Mobile, Search, CRM and Social Media Strategy to students.
When she is not helping clients navigate the world of end-to-end technology and digital transformations, you will find her planting herbs in her garden, meditating with her friends, swimming long laps, training for triathlons and filling rooms with her resounding laughter.
Find her on LinkedIn @digitalanikasharma, X @TheAnikaSharma and ig @theanikasharma
