Like many industries, the jewelry world is experiencing massive leaps in innovation thanks to the application of artificial intelligence (AI) technology. AI is transforming every aspect of the industry, from jewelry design and production to how customers interact with it in the market, helping jewelry stores grow at a rapid pace. That’s why it’s important to understand current AI jewelry applications and the prevailing trends shaping the future of this luxury business.
Brief Overview of the Jewelry Industry
Jewelry comes in many forms and can vary widely in both the type (rings, bracelets, earrings, necklaces, etc.) and the materials used in its construction (precious metals, gemstones, wood, etc.). The jewelry industry has been valued at $70 billion U.S. dollars with the average customer spending over $130 U.S. dollars on jewelry annually.
Introduction to AI and Its Growing Influence
Traditionally, trades like jewelry making have been labor-intensive processes. The creativity in the design—as well as the quality of the finished product—were entirely dependent on the craftsman’s artistic expertise. However, in recent years, technological advancements such as AI have enabled machines to perform tasks that previously could only be completed by well-trained humans.
With advanced processing and pattern recognition capabilities, AI can analyze large datasets in seconds and recognize trends or commonalities, then make predictions based on what patterns it sees. Additionally, AI can continually learn from its experiences, becoming more accurate over time thanks to machine learning algorithms. These skills can be widely applied in a variety of industries, which is why AI has grown so rapidly over the last few years.
In the jewelry industry specifically, AI has greatly affected three key parts of the jewelry lifecycle: design, production, and sales.
AI in Jewelry Design
Before AI, jewelry designs were limited by the experience of the designer and the imagination of the customer. Now, thanks to AI jewelry software, the jewelry design process requires much less physical manipulation and less visualization on behalf of the customer.
Personalized Designs and Customization
One of the most significant ways AI is being leveraged in the jewelry-making process is in the ideation phase. AI can quickly analyze customer preferences and compare that information to current industry trends and historical sales data to generate a unique design concept that’s tailored to a specific individual. The technology greatly reduces the amount of time needed to design jewelry and opens the door for greater customer participation and personalization during the design process, as AI can easily use keywords to generate different colors and styles.
Virtual Try-On Experiences
AI has also led to the birth of virtual try-on experiences which are completely changing the way consumers shop for jewelry online and in stores. Thanks to hyper-realistic AR technology, customers can see AI-generated images that demonstrate how the piece would look on them. This virtual test helps them feel more confident about committing to a certain bracelet or pair of earrings, and it also reduces the number of returns.
Enhanced Creativity and Design Possibilities
AI jewelry software is also boosting creativity. Jewelry designers are no longer limited by their own knowledge and experience. Using AI jewelry software, they can now enter design parameters and create multiple AI-generated concepts in less than half the time it would have taken to create concepts manually.
Additionally, AI isn’t human, so sometimes it will generate shapes or textures that are unconventional. These accidental details can often be the springboard a jewelry designer needs to create never-before-seen designs that will help them stand out from other designers in the market.
AI in Jewelry Production and Supply Chain
AI jewelry design is just the beginning. Supply chains around the world are seeing dramatic decreases in operational costs and improved efficiency thanks to AI’s superior decision-making and analytical abilities. Globally, AI adoption has more than doubled since 2017, and the jewelry supply chain has not been a slow adopter. Here are just three ways advances in AI are impacting jewelry production and supply chain for the better:
Streamlined Production Processes
Optimization is one of the biggest benefits of jewelry AI. Using predictive analytics and machine learning, AI is streamlining operations at every stage of the supply chain. Because of its advanced pattern recognition capabilities, it can spot bottlenecks and generate ideas for reducing them. It’s also able to analyze current processes and suggest adjustments in sequencing to improve workflows. All of this saves businesses time and money on the production line.
Inventory Management and Forecasting
AI-powered inventory management systems can more accurately predict and monitor inventory levels thanks to AI’s ability to compare multiple datasets quickly and more accurately than a human can. It can create predictive models based on current jewelry store marketing trends, historical sales, economic reports, and even previous forecasts to manage stock levels more effectively, reducing the occurrence of shortages and excess inventory.
Quality Control and Waste Reduction
Another way AI jewelry software is making waves is through quality control and waste reduction. Using visual AI jewelry technology, manufacturers can train an AI model to identify imperfections such as gemstone irregularities. Without the bias and subjectivity human workers bring to the production line, AI jewelry technology can spot quality issues with greater consistency and accuracy. Catching errors in workmanship early on reduces waste later. And, it also improves your brand as more customers will have positive experiences with a high-quality final product.
AI in Jewelry Customer Experience
Providing a great customer experience is vital to running a successful jewelry business. Today’s customers expect fast, reliable customer service, and AI is making it possible for every brand to deliver an unforgettable experience that’s personalized to each customer.
AI-Driven Customer Insights and Recommendations
AI algorithms have made it possible for companies to understand their customers faster and on a deeper level than traditional research methods. Using complex algorithms, AI can compile and analyze customer data from multiple sources. This provides a more holistic view of each customer and allows the technology to mine deeper insights about their personal preferences. Using those insights, jewelry brands get a broader, more accurate understanding of what makes each customer tick so recommendations are more relevant and their marketing strategies more successful.
Virtual Shopping Assistants and Chatbots
Automation in jewelry stores is quickly growing in popularity. Virtual assistants and conversational AI chatbots can be available 24/7 to provide real-time support to customers throughout their shopping journey. They supply AI-generated answers to questions about everything from products to credit card and payment processing and they can even offer recommendations on size or style. The best part is, they do it all autonomously without human oversight. Quick, accurate responses improve the customer’s experience and foster a deeper connection with the brand.
Improved Post-Purchase Services
AI can also assist with post-purchase analysis. More advanced types of AI are equipped with sentiment analysis which enables them to grasp the nuances of human language and understand the emotion in messaging. This means AI can help jewelry design brands by flagging messages with negative emotions so they can be addressed more quickly. It can also spot patterns in feedback to identify common issues before they become large-scale problems.
Future Trends and Innovations in AI Jewelry
AI jewelry technology has already facilitated huge advancements in the industry, but it has the potential to do even more in the coming years.
AI-Powered Sustainability Initiatives
Sustainability in jewelry design is an increasingly important factor for both consumers and businesses, and AI jewelry software could be a game-changer. It’s already optimizing supply chains to reduce waste, but this optimization could go a step further and operate on an even larger scale to help logistics professionals identify new avenues for greener material sourcing and carbon footprint reduction. With the help of AI, jewelry businesses won’t have to sacrifice quality or cost for more eco-friendly products and processes.
Integration of Blockchain Technology
Blockchain technology has significant potential to bring increased security and transparency to the jewelry supply chain. Blockchains make it possible to create a digital ledger of customer transactions that’s unalterable. When integrated with jewelry AI, businesses can run analytics knowing the AI is using unaltered data of the highest quality.
Potential Challenges and Ethical Considerations
AI is here to stay, but as it continues to be applied more widely across the jewelry design industry, businesses face new challenges and questions about data privacy, security, ethics, and how to avoid algorithmic bias. Businesses will also have to determine the best, most effective ways to roll out AI to their employees and customers. There will be a learning curve as employees, designers, salespeople, and marketers all learn how to effectively apply AI to their specific roles. This may result in an initial uptick in costs but over time the time-saving and personalization benefits of AI will far outweigh the potential increase in adoption costs.
Podium’s AI Employee for Jewelry Stores
If you’re ready to take your jewelry business to the next level by incorporating AI, Podium is here to help. Learn how Podium’s AI Employee can help your jewelry business respond to customers faster, gather more reviews, improve your operational efficiency, and keep you one step ahead of the competition.
