Luxury Institute: Edge AI is the future of personalized luxury

Edge AI is a dramatic breakthrough, reshaping machine learning privately, personalized, and secure. Discover what's behind it

By Expert Milton Pedraza "Luxury Institute"

Edge AI
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Author: House of Eden Luxury Institute

In the past few years artificial intelligence Made huge strides - especially in the form of machine learning. And in order to continue to offer its luxury customers high-performance and future-oriented solutions, this is what concerns itself Luxury Institute currently with one of the most interesting innovations in the field of artificial intelligence: Edge AI.

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Edge AI: what is it anyway?

Edge AI is one of the most recent and most promising innovations in artificial intelligence. The application works quite simply. Edge AI operates within the customer's device without actually transmitting personal data. Hence the term "edge" - the individual devices are located at the decentralized end of the artificial intelligence ecosystem, far away from centralized servers and clouds. This means that data no longer have to be uploaded to the cloud, e.g. to share it for personalization purposes. This increases the preservation of anonymity on the part of the customer.

Trusting business and customer relationships

The result of decentralization: more security, privacy, personalization and cost advantages compared to conventional artificial intelligences. And thus the elimination of data misuse. Factors that are particularly important in the high-end segment, since customers make high-quality, high-risk, investment-intensive and emotionally charged decisions. Edge AI offers security and enables the establishment of trusting customer relationships and thus leads to improved business performance.

According to the Luxury Institute This ability to provide personalized and secure services to wealthy customers is the reason Edge AI will take the luxury industry by storm over the next 10 years. But mainstream consumers will also benefit from AI: In the future, more and more companies will use Edge AI to offer private, secure, cheaper and real-time solutions.

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5 key benefits of Edge AI

The Luxury Institute has identified and evaluated the characteristics of the innovation for its customers. And now offers more expertise in operational personalization than any other consulting or luxury company. Milton Pedraza, CEO of the institute and private investor, has personally identified the 5 main advantages of Edge AI to it luxury brands enable us to offer personalized high-end solutions and services.

  1. Privacy is the default setting
  2. Cybersecurity is designed into the process
  3. Data access and model updates are continuous and real-time
  4. Cost efficiencies scale with use
  5. Better, faster personalization is guaranteed

1. Privacy is the default setting

The technology ensures that personal data never leaves the customer's device and thus the data creator has exclusive access to his data. Even if the generated customer insights are sent to a central server, they are encrypted for identity protection. This method creates an incomparably high level of data protection and secrecy, therefore fulfilling every global data protection law. This guarantees data protection standards for wealthy consumers who expect ethical behavior from luxury brands.

2. Cybersecurity is designed into the process

Edge AI decouples machine learning from the need to store data on a centralized server or cloud. This eliminates the attack surface for cyber attacks while sensitive data is being secured. The reason for this is that it is almost impossible for hackers to attack the highly distributed, decentralized state of personal data across millions of devices. Not even data scientists can capture individual data or identities, which reduces the security and legal liability risk to almost zero.

3. Data access and model updates are continuous and real-time

With Edge AI, brands bring the computing process directly to the data in the customer's device. Only the findings generated by the algorithm are forwarded to a server, where collective feedback is collected from users. This improves the predictive power of the model, which forwards forecasts directly back to private individuals - added value for brands and customers. In short, this means that Edge AI offers seamless, continuous and legal access to relevant and current customer data that is beneficial for both parties.

4. Cost efficiencies scale with use

There are many cost reduction advantages over traditional artificial intelligences. One is that brands can go directly to customers and continuously acquire data through an ethical exchange of values ​​and trust. This minimizes processes - such as the involvement of third parties - as well as the costs of data acquisition. In addition, there are almost no storage costs, as the data is neither permanently transmitted nor saved.

Further advantages are:

  • Less communication and bandwidth costs than traditional AIs
  • No arithmetic operation costs for the brand
  • Less battery consumption on the customer's device than with conventional AIs
  • Reduce the cost of complying with data protection laws
  • Lower costs to data scientists and developers

5. Better, faster personalization is guaranteed

Since Edge AI operates directly on individual data, exclusive personalization is the key experience of the technology. Namely, faster than ever before. In this way, high-end brands can adopt Edge AI to respond to rapidly changing consumer behavior. Advanced personalization with real-time actions and reactions between brands and customers through Edge AI is becoming standard.

Applications of Edge AI

The Luxury Institute predicts that the luxury industry will quickly recognize the potential of Edge AI across all products and services. The forecast: iconic fashion houses such as Hermes or Dior will use the model to access historical data on the purchase of clothing and accessories as well as travel, browsing and location data in order to personalize recommendations and design tailor-made products.

Edge AI also has huge advantages for the automotive and real estate industries, healthcare, travel and finance companies. This can be illustrated by the following two examples:

Automotive industry: Recommendations for improving driving habits and travel benefits through legally legitimate access to driving, purchase, travel and location data.

Health care: Personalized and preventive medicine through knowledge of genetic and medical history, food consumption, wellness and fitness behavior and many other real-time data streams.

Edge AI: Paving the way for the New Luxury

In general, the multi-brand and multi-category luxury conglomerates like Kering or LVMH will be able to combine the actionable results across many of their interactions. This makes hyper-personalization possible along several categories and defines the new and improved luxury.


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Milton Pedraza

Text: Milton Pedraza

Milton Pedraza is a renowned luxury expert and CEO of the Luxury Institute. He acts as a keynote speaker and consultant for international premium brands with a focus on personalization, customer relationship management and innovative data-based technologies such as artificial intelligence. The Luxury Institute is an international research and consulting institute in the luxury industry, known for its neuroscientific high-performance educational system based on emotional intelligence.

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