A Strategic Partnership for a New Era
The integration of generative AI comes as Saks Fifth Avenue navigates significant changes within its organization. Following the recent acquisition of the Neiman Marcus Group, Saks Global now houses iconic names including Saks Fifth Avenue, Saks Off Fifth, Neiman Marcus, and Bergdorf Goodman, strengthening its presence in the luxury retail landscape. Notably, Amazon has joined as a new investor, further supporting Saks’ ambition to innovate through technology partnerships.
April saw Saks Fifth Avenue unveil a luxury e-commerce storefront in collaboration with Amazon, setting the stage for deeper investment in AI-driven customer solutions. The retailer’s current deployment of NLX and AWS technologies signals a new chapter focused on intelligent personalization and operational efficiency.
Enhancing the Human Touch With AI
Central to Saks Fifth Avenue’s strategy is the belief that “At its core, luxury is personal,” as pointed out by Jessica Bengtzen, vice president of service centers at Saks Global. Bengtzen said, “By thoughtfully integrating advanced technology like NLX, we are not replacing the human touch; we are enhancing it. This allows us to work smarter to elevate every customer interaction, ensuring our teams are empowered to deliver exceptional, high-touch service across all facets of the customer journey.”
This philosophy appears in the new AI-powered tools now available to customers. Shoppers can interact with a visual, voice-guided system for instant updates on orders, returns, and other inquiries. The technology doesn’t just streamline service; it empowers Saks’ agents with real-time sentiment analysis, summarized customer conversations, and actionable insights, allowing them to offer more informed and attentive support.
Transformative Impact on Customer Service
The partnership has already delivered tangible results. According to Saks and its tech collaborators, the deployment of generative AI has slashed agent call volumes by an estimated 20%, signaling a more efficient, self-service-oriented experience for customers. Furthermore, after-call workload for customer service agents has been cut by 15 seconds per interaction, freeing up valuable time and enabling agents to focus on creating memorable luxury moments for customers.
But the real advantage lies in the system’s ability to distill lengthy customer conversations, which can span upwards of 20 minutes, into concise summaries just a few sentences long. This allows agents to quickly reference customer history and sentiment, personalizing each interaction without sacrificing efficiency.
Integrating Technology Into a Turnaround
Saks’s embrace of generative AI comes as the retailer undertakes a broader turnaround effort, addressing profit declines and vendor challenges. By leveraging AI not only to optimize customer-facing operations but also back-end processes, Saks is positioning itself to weather industry challenges and emerge as a leader in luxury service innovation.
This move shows a nuanced approach to technology. Rather than automate customer service at the expense of personal interaction, Saks uses AI to build upon the strengths of its human agents. With tools that monitor sentiment, summarize conversations, and inform agents on the fly, Saks is able to maintain its signature high-touch service even as efficiency and scalability take center stage.
Looking Ahead: Luxury Retail’s Evolving Standards
Saks Fifth Avenue’s foray into generative AI reflects an industry-wide shift toward smart, seamless customer engagement. As luxury consumers increasingly expect digital solutions that don’t compromise on personalization, Saks is setting new standards in balancing innovation with its heritage of exceptional customer care.
The partnership with AWS and NLX represents more than a technical upgrade; it marks a foundational shift in how Saks approaches service, loyalty, and ongoing brand transformation. With this move, Saks Fifth Avenue stakes its claim as a forward-thinking luxury retailer where AI and the human touch work hand in hand to deliver outstanding service with a personal flair.
