How Brands are Utilizing Artificial Intelligence
Artificial intelligence is making its way into social media. The development of artificial intelligence has brands planning how they can utilize this technology to create more immersive, personal experiences for their customers. They have started to implement different strategies incorporating AI through the creation of branded digital influencers and by streamlining their workflow process.
An example of a brand that is implementing AI technology is luxury e-commerce platform YOOX. Last November, it launched an in-app feature called YOOXMIRROR, a virtual styling suite that lets the customer express their inner stylist. The AI-powered feature allows consumers to mix and match different styles, presenting more than 250 new products a week in the format of “stories.” The team has also developed a digital avatar, Daisy, that takes users through the app and models the outfits created. She also has taken over the YOOX Instagram account, as she posts about her favorite pieces available, personifying the brand through her content. The brand says that Daisy will help to strengthen the connection between YOOX and its customers and followers.
Fashion brands are also seeing how they can use AI to forecast clothing options before producing them. Stitch Fix, owned by Hybrid Designs, says that it is generating new clothing designs based on consumers’ order data. The process utilizes a combination of three algorithms to analyze the decisions behind choosing pieces to use as a template and style attributes to compliment it. This constructs a moodboard of possible pieces that have yet to be designed. While this process can spit out a design that mathematically works in their algorithm, the designers still need to make calls based on the cultural context to determine if the clothing will be successful. Designers then take these suggestions to craft a garment that customers would wear. Stitch Fix is not the only one testing the waters with computer-generated designs, so we can expect to see more brands to tap into this process.
These new developments are not just limited to the fashion industry. Yum China, China’s largest fast-food operation, is showing how the food industry can use this technology to benefit their process. The company owns more than 8,400 KFC, Taco Bell, and Pizza Hut restaurants in China that have integrated technology at customers’ fingertips. Digital kiosks are available for customers to place their orders. At the kiosk, the customer’s face is scanned using facial recognition to process the payment. They have reported that about 84% of orders are placed via these digital kiosks or through the respective mobile app for the brand. In January, they introduced AI technology to tailor menu selections based on the customer’s previous purchases and local demographics. This helps decrease the wait time for ordering, and helps Yum China monitor patterns in stores to create less waste and achieve better margins. Because of this, the average cost per-order has increased by 1%, reaching a total of about $840 million.
These examples of brands integrating new technology into their strategies showcase the possibility of synergy between man and machine. As more research is conducted to advance these developments, the possibilities for what they can do with AI will become endless.
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