Levi’s has always been a company of innovation. Over 168 years old, it has weathered a few storms over the decades. However, it has made a clever move by adopting AI as part of its digital strategy, transforming itself into a leader in its field.

The problem
Retail is going through massive changes as shops close and jobs are lost. This has been exacerbated by the pandemic, speeding up high-street casualties. Levi’s was no exception, recording heavy losses in recent times. It needed to address these issues in this fast-changing landscape.

The solution
Despite bricks and mortar shops being hardest hit, online retail is up by 35%+. It is said that online clothing is at an all-time high. Levi’s has smartly spotted this and changed its business model. Levi’s had decided to opt for a complete digital transformation, the omnichannel company putting AI at its core. Chip Berg (President and CEO) has emphasised structural change to drive more robust EBIT growth in a more dynamic world. He has also hired Dr Katia Walsh – Chief strategy and AI officer, a veteran in digitisation and AI, to implement plans in the future. As part of her appointment, several AI initiatives have been within the digitalisation roadmap.
They have looked at several key areas:

• Data – Powerful use of data, analytics and machine learning in all aspects of the business for a data-driven approach.
• Demand – Using machine learning for demand forecasting, prioritising fulfilment and reducing lead times. They have developed a repository of data (transcription, browsing history, behaviour, weather, climate, economic outlook, social media and fashion trends) to anticipate demand and give the best advice.
• Customer experience – Using machine learning for a personalised shopping experience based on what you have bought and viewed. It is also using a visual search feature to help customers quickly find what they are looking for as well as a recommendation engine to optimise customer experience (CX)
• Commerce – They are looking at automating all repetitive tasks to speed up delivery and reduce issues.
• Product design – Levi uses an AI-powered design algorithm to help create new styles of denim.

The results
It is a bit early to get solid results; however, they have already seen eCommerce grow by 79% and profits four times what was taken the previous year. This is a tremendous result. The key to this bounce back is addressing and incorporating AI as part of its core business. Implementing AI in a big way throughout an organisation can yield better results. Besides this, Dr Walsh is also addressing responsible AI to help the company be more sustainable with reduced waste.

The future
With these impressive figures. Having a solid AI, data-driven strategy is helping make a difference. As the industry moves towards sustainable fashion, the technology will allow them to look at on-demand personalisation. By implementing iterative ML/AI learning, the company should understand its customer’s needs and desires. This will help develop new products/services or leverage the data with more comprehensive partners, thus driving revenues further upward. The future is perfect, and I look forward to seeing how their technology develops.

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One of the hardest things in business is to imagine what is possible with new technology. The case studies are designed to digest projects around the world using the latest technology and my insights. It is also showcasing the companies and their products, services and innovation. So that you know, we don’t have any connection with companies named unless we’ve said otherwise.

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