LVMH: Enhancing Human Potential with AI

Artificial intelligence (AI) is not intended to supplant human professionals but rather to work alongside them, according to Moët Hennessy Louis Vuitton (LVMH). The French multinational luxury company plans to use AI algorithms to complement the efforts of its human workforce, as stated by Axel de Goursac, the director of AI Factory at LVMH. During a speech at Viva Tech Paris 2024, Goursac emphasized that their goal is to enhance human capabilities with AI, not to replace human labor. These remarks offer reassurance to workers worried about a future where AI might dominate the workforce and render human skills obsolete.

According to LVMH, such a scenario is unlikely as human input remains crucial, particularly in the creative domain of the luxury goods industry. Goursac further elaborated that while the creative process remains inherently human, generative AI can act as a valuable complement to this process. The deployment of generative AI at LVMH is aimed at accelerating product development and reducing associated costs, thus supporting human creativity rather than overshadowing it.

Similar sentiments were echoed by Robin Li, co-founder and CEO of Baidu, who spoke at the same event. Li suggested that the advancement of artificial general intelligence (AGI) could address concerns related to the current population decline by significantly boosting productivity. He envisioned a future where AGI, attaining human-level intelligence, could potentially exhibit the productivity of a billion people, leading to overall improved living conditions. While it remains uncertain which company will achieve this milestone first, the consensus is that everyone’s life would be positively impacted.

This discourse takes place against a backdrop of growing investor interest in AI technologies. Just days before the event, Elon Musk’s company secured substantial funding, raising $6 billion in a Series B round. This investment is set to propel its Grok chatbot to become a competitor to ChatGPT by the end of 2024. This funding round represents a crucial milestone for xAI, elevating its valuation to $24 billion just 11 months after its inception in July 2023.

In a parallel development, LVMH has been working on its own AI initiatives. In early 2024, the company introduced MaIA, an internal AI chatbot designed with features that prioritize privacy. This chatbot, rooted in OpenAI’s GPT-4 foundational model, signifies LVMH’s commitment to integrating AI within its operations. The luxury giant has also invested in AI education for its staff, training 1,500 employees in AI usage during 2023. This initiative is set to expand, with plans to educate more than 10,000 employees in the coming years.

The MaIA chatbot was developed in collaboration with Stanford University’s Institute for Human-Centered Artificial Intelligence. This partnership underscores LVMH’s dedication to embedding human-centric principles in its AI applications, ensuring that AI tools are used responsibly and ethically within the company. By enhancing internal AI capabilities and understanding, LVMH aims to foster a symbiotic relationship between AI technologies and its human workforce.

The broader adoption of AI at LVMH reflects a strategic move to stay ahead in the competitive luxury market. By leveraging AI to streamline processes, reduce costs, and foster innovation, LVMH aims to maintain its market-leading position while ensuring that human creativity and expertise remain at the forefront. This strategy not only addresses operational efficiencies but also aligns with the company’s vision of integrating advanced technologies to better serve its customers and stakeholders.

The approach taken by LVMH and other industry leaders like Baidu represents a balanced perspective on AI adoption. Rather than viewing AI as a threat to human labor, it is being positioned as an empowering tool that can augment human capabilities. This cooperative outlook on AI integration sets a precedent for how technology and human expertise can coexist to drive progress and innovation in various industries.