Artificial intelligence is rapidly transforming the luxury retail landscape. Dr. Kamran Abbasi, Chief Data and Technology Officer at Chalhoub Group offers his insightful look.

How do you see artificial intelligence influencing consumer behavior and expectations in the future?

Dr. Kamran Abbasi: AI is arguably one of the most disruptive innovations since the dawn of the internet. Its impact on consumer behavior is already profound, and in the near future, it will fundamentally shift how customers interact with brands and services.
One of the key ways AI will shape consumer behavior is by heightening their expectations for personalized experiences. Today, customers already demand tailored recommendations and shopping experiences, but AI will take this to a whole new level.
Let’s take personalized recommendations as an example. While many companies have begun to offer recommendation engines, few have truly perfected them. With AI, we are moving closer to that goal every day. We can better understand each customer’s unique preferences, shopping habits, and even their unspoken needs. AI enables us to make hyper-accurate predictions about what they might want next.

Chalhoub Group operates a portfolio of luxury brands. How does predictive shopping work within your group?

K.A.: Predictive shopping is the art of knowing what a customer will want before they do. At Chalhoub Group, we leverage AI to anticipate customer needs based on their purchase history and online behavior. Through machine learning algorithms, we can pre-emptively offer product suggestions that resonate with the customer’s preferences.
For example, if a customer frequently purchases certain luxury skincare products, AI can predict when they might run low and suggest a timely reorder. Even more, during their browsing journey, AI dynamically adapts recommendations in real time, constantly refining the shopping experience. It’s about removing friction, providing convenience, and making shopping delightful by knowing the customer better than anyone else.

How is AI enhancing customer service in luxury retail?

K.A.: In the realm of customer service, AI has truly transformative potential. While chatbots have been around for some time, they’ve historically been hit or miss—sometimes frustrating customers more than helping them. But AI has matured significantly, and now, it’s enhancing customer service to provide near-human interactions. Imagine asking a virtual assistant for fashion advice—like pairing shoes with a specific dress—AI can become your personal stylist.

What is the main ethical issue related to the use of AI in the retail industry?

K.A.: AI relies on vast amounts of customer data to operate effectively. It is our responsibility to ensure that this data is collected with full transparency, stored securely, and used ethically. Customers should feel confident that their data is being used to enhance their shopping experience—not to invade their privacy.

 

Dr. Kamran Abbasi
Dr. Kamran Abbasi is the Chief Data and Technology Officer at Chalhoub Group. Prior to that, he has worked at Accenture, Argos, Barclays, and the “Telegraph” newspaper, where he held pivotal senior technology roles.

 

 

Chalhoub Group
With over 16,000 employees across 8 countries in the Middle East, Chalhoub Group has been a partner and creator of luxury experiences since 1955. Its portfolio encompasses ten owned brands and over 450 international brands in the luxury, beauty, fashion, and art de vivre categories. Recently, the Group expanded its expertise into new categories of luxury watches, jewellery, and eyewear.

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