Virtual Assistants in Luxury Retail

The Future of Virtual Assistants in Luxury Retail
Siddharth Menon
Shrishti Rastogi
Foresight & Innovation Internship
under guidance of
UX and Strategy Team (Holition)
22/05/2023
The contents of this report are proprietary to Holition, and unauthorised distribution or
reproduction of any part of this document is prohibited without prior written consent from
Holiton.
Siddharth Menon - sidmenon.design@gmail.com
Shrishti Rastogi - s.rastogi0520221@arts.ac.uk

THE FUTURE OF VIRTUAL ASSISTANTS IN LUXURY RETAIL
Abstract
This report aims to investigate the potential of futuristic AI-based virtual assistant
interactions in the context of the luxury retail industry. As technology continues to advance,
AI-driven virtual assistants have emerged as a prominent tool for enhancing customer
experiences. This study delves into the unique requirements and challenges faced by the luxury
retail industry in implementing AI-based virtual assistants and examines their potential to
revolutionize customer interactions and sustainably drive business growth.
The research methodology involves a combination of qualitative and quantitative
approaches. Interviews and focus groups will be conducted with luxury retail industry
professionals to gain insights into their perceptions, expectations, and concerns regarding
AI-based virtual assistant technology.
The study will explore various aspects of futuristic AI-based virtual assistant interactions,
including personalized recommendations, real-time customer support, and seamless omnichannel
experiences. Furthermore, it will analyze the challenges associated with integrating AI into the
luxury retail environment, such as maintaining a sense of exclusivity and personalization amidst
technological advancements.
The findings of this research will contribute to the existing body of knowledge by
providing valuable insights into the potential benefits and limitations of AI-based virtual
assistant interactions in the luxury retail industry. The study aims to guide luxury retailers in
leveraging AI technologies to create unique and exceptional customer experiences while
preserving the essence of luxury and personal touch.
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Contents
Abstract……………………………………………………………………………………1
Human Behaviour…………………………………………………………………………3
Technology ………..……………………………………………………………………..12
Research Focus & Strategy...…………………………………………………………….14
Contextual Research……………………………………………………………………..16
Future Mapping…………………………………………………………………………..21
Scenario and User Journey Mapping...…………………………………………………..24
Primary Research………………………………………………………………………...29
References...……………………………………………………………………………...33
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Human Behaviour (1)
The purpose of this section was to amass a contextual understanding of human behaviour
so that it would aid an insight into drivers behind digital anthropology. Holition has identified 4
pillars of human behaviour that envelop these drivers; Acquire, Play, Explore and Connect.
Understanding human needs provides the groundwork for establishing more meaningful
relationships with technology, interfaces and experiences within retail.
Acquire (1.1)
The human need to acquire can be approached from the perspective of the acquired
goods. Humans purchase items to bolster their self-worth, which arises from internal and
external factors. Social comparison is a motivator - owning items deemed valuable by society
increases the sense of belonging within a community, whilst also establishing superiority within
its hierarchy. The need to appeal to others can also be pinpointed to an individual as opposed to a
collective, for instance, in order to satisfy the innate human desire to attract a mate. Acquisition
of products also satisfies one’s self-esteem and/or self-worth. Other drivers include the
fascination with novelty and the fear of missing out on value.
One key indicator of our willingness to acquire is the barrier of trust. Trust not only eases
us into buying products but also empowers us to buy into the idea of a service or experience.
Humans typically waver between two states; the critter state and the smart state. The critter state
is fear-driven ‘reptilian/ mammalian brain hijack’ and decisions are made on survival tendencies;
fight, flight or freeze. The smart state occurs when the brain is in harmony such that innovation,
collaboration and other higher-levels of thinking are achieved. Trust is one of the precursors for
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the transition from a critter to smart state, provoking a more engaging experience with a product
or service.
Once trust has been established, one more hurdle for a willingness to acquire can be
derived from user experience principles: usability. This can be broken down into learnability,
efficiency, memorability, error prevention, error forgiveness and satisfaction. Users should be
provided shortcuts to decision-making dilemmas, whilst providing them enough information to
console them into taking action each step of the way. Usability, in tandem with trust, can drive
consumers to acquire goods and services.
Play (1.2)
Play-psychology is not only found in humans, but is a by-product of Darwinian
principles. Non-human animals exhibit play through locomotion (jumping, swinging, running),
object play (biting, manipulating) and social play (chasing, wrestling). Humans use the tools
available to them to play in more innovative manners - construction, social-dramatic, language,
pretence, games etc. More complex play behaviours have their roots in our evolutionary
ancestors and thus the core needs to explore, survive and procreate. The complexity of play can
be broken down into three stages (although in reality it would be more of a continuous
spectrum).
Primary process play is short-term play. It is primal, is often caused by boredom and low
behavioural thresholds and excess metabolic energy. It requires the least amount of mental
processing due to its atavistic nature. Secondary process play is longer-term, maintaining
physiological, behavioural and perceptual condition through aid of physical and mental exercise.
Tertiary process play requires the highest-level of thinking. It fosters developmental milestones,
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cognitive accomplishments, social skills, creativity and pushes one’s physical abilities to their
peaks.
So what causes us to transition along this spectrum? As play requires superfluous energy
levels and excess mental processing to burn, tertiary process play would require the most
security. Physiological, mental and social security; greater assurances provide greater levels of
comfort and willingness for humans to embrace a flow-state where they can engage with
higher-level play. The prerequisites for play can be further broken down into the following.
Organismal factors such as good health, a physiology conditioned to vigorous/ sustained
activity, diet and an environment that can sustain play behaviours. Developmental factors such as
the presence of parental care, time to explore and play in safety and the possession of instinctive/
motivational resources. Ecological conditions such as optimal environments (weather conditions
and presence of predators) also factor in. Social determinants include the number of play partners
available as well as the social rigidity that one may find themselves in; a more rigid social setting
would dissuade play due to the threat of social consequences.
As play can be costly to energy resources, it tends to be instigated by motivators.
Competition, rooted by the psychological instinct to succeed and survive, is one of them. In
modern play applications it could be engaged with via a ranking system. Skillfulness (perhaps
score-based) demonstrates intelligence, competence with narrative play or coordination/ physical
prowess, which satisfies our pursuit of status and recognition within a social context. The quest
for achievement can be attributed to progression, completion, perfectionism, loss-aversion and
the existential desire to leave an impact. Humans can be motivated to play through creative
exploration; expression through customisation, design etc. can distinguish oneself from the rest
of society as well as help someone understand their own preferences better. This is closely tied to
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autonomy - the use of versatile movement and actions to separate from the pack, and take
advantage of individualisms. Social motivators are largely driven by the desire for inclusion, and
exclusion from antagonistic social groups. The social schematic may influence one’s immersion
in play - it may be turn-based, cooperative or community-centric. Play can be motivated by
relaxation purposes. It can be used as a way to dissipate pent-up frustration, culminating in a
meditative or tranquil state of mind.
Another motivator for play is our desire to explore, which stems from a need to feel safe
and familiar with surroundings. Offering means to extend exploration capabilities can have
significant retaining power for an experience.
Explore (1.3)
Exploration can be interpreted across many veins. A basic definition is investigative
exploration, which concerns the examination or analysis of something. Innovation exploration is
a narrower endeavour, involving testing and experimentation. This is a line of thinking utilised
by artists and inventors. Our sense of discovery and adventure may incite a third sense of
exploration, revolving around travel and spatial awareness. Limited exploration is a diagnostic
tool used to address answers to a predetermined question, with a more thorough investigation
into a particular field. Serendipity is a form of informal experimentation, accidental discovery
and spontaneous invention.
In order to effectively explore, the approach should be directed by two orientations -
flexibility in looking for data and open-mindedness about where to find them. Drivers for
exploration may stem from several factors. Challenging oneself to approach the unknown can
validate one’s self-worth. Exploration can satisfy the thirst for knowledge, consolidate hope for a
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better future and unearth new opportunities. Travel exploration can be impelled by obsession and
compulsion. Exploration through travel can facilitate mediation and cultural symbiosis.
Self Determination Theory
There is also the matter of self-exploration to consider. Gaining an insight into the self
can provide an introspective outlook on thoughts, feelings, behaviour, motivations, strengths and
weaknesses. The purpose for self-exploration can be attributed to an understanding of who you
are, what drives you, what you value and how you could improve.
Self Determination Theory (SDT) provides the foundation for the transition from
self-awareness to self-acceptance. Self awareness can be advantageous in improving self esteem,
preserving boundaries, improving communication of needs (and subsequently personalisations)
and strengthening relationships. Self acceptance is a gateway to self-care, greater empathy and
adaptability, the latter of which can open oneself up to trying new technologies, trends and
experiences. It can also fortify an understanding of self-worth, helping people not settle against
their value, and preventing them from degrading influences such as pressure purchasing.
Organismic Integration Theory concerns extrinsic motivations (i.e. the properties,
determinants and consequences), where behaviour is viewed as an instrument to sway outcomes
extrinsic to the behaviour itself. The more internalised the extrinsic motivation, the more
autonomous the person will be when enacting the behaviours.
Casualty Orientations Theory assumes that people tend to orient towards environments
and regulation of behaviour. This can be subdivided into Autonomy (interest in and value of
what is occurring), Control (rewards and gains) and Approval (impersonal orientation
characterised by anxiety concerning competence).
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Cognitive Evaluation Theory covers the more intrinsic motivations. It addresses the
effects of social contexts, rewards, interpersonal control, ego and autonomy. Basic
Psychological Needs Theory argues that psychological well-being is predicated on autonomy,
competence and relatedness (all essential in equal measure). Goal Contents Theory comments on
the stark contrast between extrinsic goals such as financial success, appearance and popularity
with intrinsic goals such as community, close relationships and personal growth. The latter is
notably more associated with inner wellbeing. The development and maintenance of close
personal relationships arises from the concept of relatedness, which is one of the three basic
psychological needs. This is covered by the Relationships Motivation Theory, which stipulates
that high-quality relationships can not only satisfy relatedness, but also the need for autonomy
and competence to lesser degrees.
Understanding SDT and the core intrinsic and extrinsic motivation patterns in humans
can crucially affect an experience’s level of engagement with its users.
Connect (1.4)
Humans have exhibited an inherent and compelling need to connect with one another.
While the specific forms of connection have evolved over time, the underlying desire for social
interaction and interpersonal bonds remains a fundamental aspect of our existence. This essay
delves into the intrinsic human need to connect, exploring its significance in various spheres of
life and highlighting the profound impact it has on individuals and societies alike.
At the core of the human need to connect lies the recognition that we are inherently social
beings. From early childhood, we seek out companionship and form attachments with family,
friends, and peers. The presence of meaningful relationships serves as a vital source of emotional
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support, enabling us to share our joys and sorrows, validate our experiences, and alleviate
feelings of loneliness and isolation. Such social bonds not only enhance our overall well-being
but also contribute to improved mental health, reduced stress levels, and increased resilience in
the face of adversity.
Human connection plays a pivotal role in shaping our individual identities. Through
interactions with others, we gain insights into our own strengths, weaknesses, and aspirations.
Relationships act as mirrors, reflecting back our qualities, helping us develop self-awareness, and
fostering personal growth. Furthermore, it is within the context of relationships that we learn
empathy, compassion, and emotional intelligence, enhancing our ability to navigate the
complexities of human existence.
The need for connection extends beyond individual well-being; it also serves as a driving
force for societal progress. Effective communication and collaboration are crucial for the
exchange of knowledge, ideas, and innovations. When individuals connect and share their
expertise, experiences, and perspectives, it creates a rich tapestry of collective wisdom, enabling
societies to overcome challenges, discover new frontiers, and evolve intellectually. Whether in
the realms of science, arts, or governance, the collaborative nature of human connection fuels
innovation and propels humanity forward.
The human need to connect also manifests in our longing for a sense of community and
belonging. Communities provide individuals with a shared purpose, a sense of identity, and a
place to belong. They foster social cohesion, encourage cooperation, and provide a support
network that extends beyond immediate family and friends. Whether it is a neighborhood, a
cultural group, or an online community, the connections we forge within these contexts nurture a
sense of place, enabling us to find solace, belonging, and collective strength.
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In recent years, technological advancements have significantly transformed the way we
connect and interact with one another. Social media, video conferencing, and instant messaging
platforms have expanded our reach, allowing us to connect with individuals from diverse
backgrounds and geographical locations. While these virtual connections offer unprecedented
opportunities for information sharing and social engagement, it is important to recognize the
need for balance. Maintaining genuine, face-to-face connections remains essential to fully satisfy
our human need for authentic and meaningful interactions.
The human need to connect is a universal and timeless aspect of our existence. It
encompasses the desire for social bonds, personal identity development, collaborative progress,
and a sense of community and belonging. As we navigate the intricacies of an increasingly
interconnected world, it is crucial to recognize the profound impact of connection on our
well-being, personal growth, and societal advancement. By fostering and nurturing genuine
relationships, both in person and through technological means, we can satisfy this intrinsic need
and foster a more compassionate, understanding, and harmonious global community.
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Human Behavioural Metrics (1.5)
The insight into human behaviour with the context of digital anthropology and its drivers
resulted in a framework of metrics which could then be used to evaluate technologies, scenarios
and user-journeys. [Figure 1]
Figure 1
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Technology (2)
Holition identified four gigatrends from human behaviours and how technology is
shaping the future of the human experience in the retail world. The Gigatrends: Digital World,
Human Computing, Hyperpersonalization, and Metahumans explore existing technology and
how it is transforming the human experience currently as well as in the future, catering to
consumer needs, in both a physical and a digital retail environment, easing the process of
omnichannel retailing.
The gigatrends were explored in order to identify the existing technologies used in the
retail and non-retail sectors. It was evident that gigatrends were present in multiple technological
fields and industries. By blurring the line between the real and the virtual worlds, they provide an
immersive and interactive experience.
The research on existing and emerging technologies branched into various sectors
including healthcare, finance, IT, entertainment and retail. Each sector adapted existing
technologies as per their needs and has been building on them.
Finance-based organisations have always embraced emerging technology that improves
efficiency, speed, and customer satisfaction. Big data, cloud computing, blockchain, embedded
finance, and neo-banking have been growing in the last few years. AI has also been a massive
value driver in finance for fraud detection, AI-powered trading algorithms and chatbots.
Technology is an integral part of modern healthcare, from huge diagnostic imaging
scanners to tiny wearable sensors. Medical facilities are improved by technologies such as
artificial intelligence (AI), machine learning, virtual care, the Internet of Medical Things, and
wireless connections. IT industry with hardware and software engineering, Application
development, AI-powered platforms like ChatGPT, Google Bard. IT industry is evolving tech
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continuously. Entertainment industry is also inclined toward AI and generative AI and metaverse
recently. AI usage is particularly prominent across sectors.
Further research into emerging technologies focused on UX Design. As the field of
human computer interaction expanded, screens disappeared and a shift was made toward Voice
UI and interactivity, utilising human senses to interact like gesture control, touch screens, and
voice control. A data-driven approach and the impact of artificial intelligence on personalization,
automation, adaptation, and empowerment. The technologies of RFID, deep learning, and virtual
assistance are emerging or already in existence.
The key technologies identified by Mckinsey for the fashion industry [Figure 2].
Artificial intelligence has gathered interest lately and its application is visible within the fashion
industry across the value chain.
Figure 2
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Research Focus & Strategy (3)
A culmination of gathered interests during the first two secondary research stages and
identification of potential in the retail industry led to the formulation of the research question.
One bracket of emerging technology with continuous rapid developments in recent years and no
sign of decelerating is artificial intelligence and deep learning. Breakthroughs in AI technology
could unlock the door to a plethora of fluid, intuitive human-interface interactions.
One such interaction which is widespread but currently perceived as purposeless/ an
annoyance is the virtual assistant. Currently used in e-commerce for various purposes such as
redirecting their customers to their desired service points, they are deemed inefficient and
inauthentic, often imploring users to obtain information themselves without its aid. A more
powerful virtual assistant would be welcomed with open arms by the retail market, but it is
important to understand how an emerging technology with facets such as deep learning could be
adopted without friction.
Modern day assistants [Figure 3] tend to have many friction
points, offering limited avenues for customer support, and are
generally not considered as efficient as a phone call with a service
operator or web search.
Figure 3
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The solution is to create a virtual assistant experience that parallels the human retail
assistant interactions we have today, a mirror to realism that doesn’t demand a large leap in faith
and knowledge from the user base. However there is a spectrum of realism that extends to
hyper-realism, and defining the experience’s position on this spectrum would be key to user
immersion. The aforementioned research questioned was stipulated as follows:
‘How can AI and deep learning deliver a hyper-realistic virtual assistant experience?’
The next step was to dissect the above question into its constituents using tools such as
word-association, defining constraints where possible in order to keep the subsequent research
grounded.
It was decided to contextualise the research within the luxury-retail space, with an aim of
creating a narrative for this industry in the year 203x (10 to 20 years into the future). Since user
interaction and adoption was the key focus here, a decision was made to consider technology as
an enabler and more of an afterthought to user experience design. Doing so would yield more
innovative results.
Before proceeding to more contextual research, branching questions/ points-of-interest to
the original research proposal were outlined, to confine the direction of said research. These
POI’s included function, interface, tactility, communication, intrusion, proactiveness,
engagement, humanisation, trust, validation, security, user retention and gamification.
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Contextual Research (4)
As technology takes a backseat at this stage of investigation and contextual analysis, the
focus shifted to analysing user experiences of modern-day retail assistants. Virtual assistants and
human personal shopping assistants were studied before constructing user journeys for them
respectively. Pain and friction points for both were identified and the journeys were further
analysed in a behavioural matrix, using the pre-established metrics from section 1. A ‘203x’
assistant experience was then comparatively designed, striking the optimal balance between the
various modern day assistants available to us.
User Experience Analysis (4.1)
Focus: Modern Virtual Assistants
Virtual assistants on e-commerce platforms typically offer text-based chatbot interactions.
Humanisation goes as far as giving them a name and perhaps a face, but conversation is stunted
due to an option-facing format. Their services include making product recommendations,
facilitating transitions, offering relevant discounts and coupons, authenticating voucher validity,
locating stores and managing returns/ shipping. They are used as an information bank primarily,
and notably do not offer opinionated feedback. In the wake of recent developments in natural
language processing, many retailers have started to work with tools such as GPT to provide a
more fluid conversational experience for their customers. Virtual assistants are useful for
retailers as they filter out customers with simple requests so that manpower is reserved for more
tailored customer requests. This is due to the lower operational costs in addition to their 24/7
availability.
Virtual assistants are also an interface tool used by many smart devices for more
generalised functionality. Voice UI’s are a staple, examples of which include iOS’s Siri,
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Microsoft’s Cortana and Amazon’s Alexa. They signal a shift to screenless technology, and a
drive to integrate more smart products into the same operating system. They serve a multitude of
functions, such as information (weather and fact-checking), planning (scheduling, shopping lists,
setting alarms), device control and media control (accessing digital streaming platforms, radio
etc.). As the market share for voice-controlled devices continues to dissipate amongst emerging
players (originally firmly controlled by Amazon’s Echo devices), it is expected that consumers
will own more than one brand of voice-controlled device as the market expands.
Consumer interest in voice shopping services is currently low. A CouponFollow survey
in April 2021 determined that product browsing was the top ecommerce activity facilitated using
voice assistants. Less than a quarter of these respondents said that they conduct purchases via
their voice assistant, and most of these purchases were for products in health and beauty or
electronics. As voice shopping becomes more ubiquitous and engagement is refined, consumer
interest has potential to grow especially in markets such as fashion.
Adoption has had many hurdles, the prime being concerns with privacy and
dissatisfaction. Accessibility, data security and privacy are non-negotiables when it comes to
encouraging user retention, which has instigated research into ethical compatibility from VA
developers.
Focus: Modern Personal Shoppers
Personal shopping assistants are a more familiar service and are usually provided in the
luxury retail sector. They act as locators, identifying the location of products, brands and
shopping outlets. They are an informer, providing information on products (features,
specifications and personalisation options) and respective finances (price, price history, sales,
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discounts, budgeting). They are a facilitator (logging shipping information and processing
payments, returns and exchanges) and a resolver (bespoke customer service, feedback provider,
product recommender, gift wrapper, customising and other special requests).
They are valued for their ability to tailor their service effectively, and are often employed
for their expertise in the product. Successful PSA’s have a grasp on when to disagree with their
clients and how to do so effectively. They are usually entrepreneurs and spend time growing their
personal brand. PSA’s are also known to reject clients if they feel that their personalities do not
complement one another, indicating that there will always be risk of inadaptability.
The countenance of a PSA greatly influences the likelihood of a synchronous relationship
between assistant and client. Appearance should generally be clean, inoffensive and instil
self-confidence, which all play a part in validating their feedback. Personality wise they need to
be knowledgeable about brands, products, stores and salespeople, be efficient, friendy,
empathetic, inclusive and patient. They should also be organised, able to multitask and prioritise,
and be motivated and selfless.
User Journeys (4.2)
User journeys for virtual assistants were set up by engaging with virtual assistants online
and using a first-hand account of the experience flow to map out the various stages and user
touchpoints. The same was done for personal shopping assistants by studying interviews and
reviews of contracted personal shopping assistants.
Both journeys shared common ground such as discovery, visualisation, validation
purchase facilitation. The virtual assistant had a longer but more refined product discovery
process with seamless transactions whereas the personal shopper experience had the added
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benefits of a tactile understanding of products and fits. The virtual assistant experience also was
deemed far more efficient with less set-up time and lead time, allowing the operation to be done
instantaneously online (coming at a cost of credibility due to less perceived processing).
Efficiency goes hand in hand with convenience - the greater time (and financial) commitment for
personal shopping may serve as a deterrent. Virtual shopping also provides less room for error
with regards to communication: there are fewer opportunities for language or cultural barriers
and a higher level of compatibility. This format of shopping also tends to provide a greater
selection of products and brands whereas personal shoppers have to be more conservative with
branching out for sake of time and resources.
203x Assistant (4.3)
There are numerous convenient benefits to virtual shopping as aforementioned however
the ideal shopping experience would draw from this as well as the authenticity of the personal
shopper experience. A behaviour matrix was constructed, fusing the two user journeys with
behaviour metrics outlined in section 1.5. Both journeys were judged against each metric, before
interpolating to find a balanced ideal: a ‘203x Assistant’. The 203x assistant was construed to
have the following qualities as a result of this exercise:
● On influence: algorithmic conditioning, subtle yet targeted recommendations, not overly
influential. Should be accepting and inclusive.
● On validation: empowers and incentivises self-validation, provides validation itself.
● On novelty: less novel, more familiar and trustworthy.
● On social comparability: disincentivises social comparison, provides a platform to lay out
internal dilemmas (visually or otherwise).
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● On trust: encrypted, secure and unhackable. Acts in user’s best interest, not influenced by
retailers.
● On information: verified information, standardised databases. Uses data to instantly
predict and extrapolate.
● On creativity: should understand/ analyse creativity potential of user and stimulate that
side of their character appropriately.
● On achievement: a shared sense of achievement should be conveyed, the common goal is
to assist the user.
● On autonomy: user should know they are in control, but assistant can occasionally start
conversations.
● On reasoning: machine learning used to bridge the gap, make conversations faster
without demanding too much reasoning from user.
● On relaxation: User should be as relaxed as possible and enter a flow state, so that they
obtain a clearer vision of their desired use cases.
● On curiosity: should engage user’s curiosity, and provoke the same sensation of limitless
exploration as provided by the internet. Self exploration through self expression.
● On adaptability: should adapt to different environments and adjust conversation levels/
tone accordingly.
● On social rigidity: relationship should have the respect that comes with having a friend to
confide in.
● On loyalty: two-way loyalty, no loyalty to brands/ retailers from assistant or user.
● On competition: similarly to the world-wide-web, should have little competition.
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Future Mapping (5)
Following secondary research and analysis of the modern-personal shopping assistant and user
journeys both online and offline, a matrix was developed to illustrate the personal shopping
assistant for 2030. This led to the development of future mapping,
Future Wheel (5.1)
Figure 4
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Pillars of Satisfaction (5.2)
Hyper-personalised retail and luxury retail were the focus areas. Signals are derived from
the events of the last decade, current innovations and developments, and the changes in
perspective on how AI will be incorporated in the future.Among the signals were: (a) IP
crowdsourced by generative AI, (b) Competing brands are more open to using identical protocols
for cross- compatibility and (c) Voice Interface is underutilised and over-generalised. In
addition, signals were further classified based on the three pillars of customer satisfaction:
service, trust, and interaction. Each of these pillars was further divided into sub-sections.
It is under Services that cross-compatibility is provided in terms of transactions, smart homes,
and wearable technology and how these technologies are compatible with similar technologies
from other companies, product for recommendations, personalization, and variety for consumers
and experience in consumer engagement, exclusivity, and special treatment.
Interactions included environment for intraction physical, e-commerce or the metaverse,
communication between AI and humans through language, expressions or actions and the
interface of the AI it could be humanisation or could be gamified .
The third pillar of satisfaction which is also the most important is trust. Trust included security
of consumers’ data, privacy and transparency, credibility of the AI and from the AI assistance
and intention.
These signals gave way to direct consequence that could be possible in the next 5 years and are
more realistic like (a) all products have a digital fingerprint , (b)AI personalities start becoming
celebrities and (c) Companies develop specialised VA’s that coordinate across similar protocols.
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The indirect consequences of the signals are innovations that would be possible in the next
10years like (a) brands offer plugins/ add-ons for user’s personal AI with product database,
(b) Unique AI personalities will be assigned to humans from birth, uses ML to analyse
personality and (c)AI’s have a neural link to their users and there is multi-nodal communication.
5 W’s + 1 H (5.3)
The research question “How can AI and deep learning deliver a hyper-realistic virtual
assistant experience?” was further explored using the research methodology 5Ws + 1H.
Figure 5
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Scenario and User Journey Mapping (6)
Future mapping provided a foundation for a more focused user experience design,
incorporating the ‘203x assistant’ into ‘203x’.
World Building (6.1)
A culmination of direct and indirect consequences from the future wheel served as the
basis for a ‘203x’ world visualisation. A particular focus was given to how people would interact
with virtual assistants, before detailing a potential retail application of such an assistant:
● Meta-esque firm pairs users with a meta-pet or a meta-personal-assistant (MPA)
● MPA’s can be assigned from birth, learning from user’s interactions by seeing what they
see, hearing what they hear and using biometric sensors to gauge emotional responses.
● MPA’s can also be signed up for via a consultation, with an opt-out policy.
● In a time where wearable technology is increasingly popular, MPA data is stored on an
electronic wristband. Other peripheral devices may include AR eyewear.
● MPA’s act as a hub for communications: smart home technology, online banking, social
networking, medical records etc.
● MPA’s can have their environmental sensors (microphones and cameras) activated or
deactivated, indicated by the colour on the user’s wristband (thus alerting non-users).
● MPA has a customisable meta-appearance and can be interacted with visually within the
metaverse.
● Primary method of communication is voice interface, via open-back earbuds perhaps.
● MPA AI has its own unique and iterative personality designed to compliment the user.
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Persona (6.2)
An analysis of the luxury retail user base led to the construction of a persona that would
later help visualise a narrative. Details included a bio, personality traits, technology access and
retail-specific goals/frustrations/motivations. The overview of the persona is as follows:
‘ Olivia is a 35 year old Regional Director who travels four to eight times a month on
behalf of her company. It is common for her to visit the same cities and stay at the same hotels in
the same region in which she travels. Despite taking similar trips frequently, she spends hours
planning her outfits and schedule her trips. She expects her travel to be organized and easy to
plan. She is determined, practical and adapting. She is an introvert, but enjoys socialising with
her close circle. She adapts to changes and is always keen on trying new technologies. Her
existing toolkit is comprised of a wearable MPA (wristband) and a mobile phone with access to
applications such as social media. Her goals include:
● Working towards the growth of the region she is manages
● Streamlining her work and work flow
● Maintaining a work-life balance
● Narrowing her purchasing options easily
● Organising her routines and travel faster
● Standing out amongst her peers
● Being more self-expressive
She is frustrated at being unable to plan and map out her day, finding it difficult to put
together her outfits, remembering the articles that she already owns when buying more, and
spending too much time shopping/ making reservations. She is motivated by ease of use,
comfort, convenience and price. ’
25
Retail Narrative (6.3)
The world building was followed by the construction of a retail narrative. Inspired
cumulatively from current user journey research, signals, moodboards and pop-culture, the
narrative revolved around the proposed ‘MPA’ - it’s set-up, integration, use on the shop floor
and use in a fitting booth.
A corresponding storyboard was then designed on Figma, outlining the experience in a
series of illustrations.
26
27
Figure 6
28
Primary Research (7)
The proposed user journey underwent extensive focus group testing, which highlighted
pressure points and areas for improvement. It was designed to provoke a thoughtful and
imaginative conversation about the pains of today’s virtual assistant experience and the potential of
the future virtual assistant experience..
Focus Group Set Up (6.1)
3 focus groups of 5+ individuals each were compiled, consisting of luxury retail users
and retail experience practitioners. In order to immerse the participants as effectively as possible,
a concise version of the scenario, future world context and and experience design were
constructed, so that the session could turn focus to the responses without overwhelming them
with information. A script was designed to improve the overall flow, and ensure that all bases for
data collection were covered.
The format of the focus group sessions started with an introduction, defining the role of
Virtual Assistants in the present day. This was followed by an icebreaker, where participants
were asked about their recent experiences with AI natural language processing tools, due to the
increasing popularity of LLM (Large Language Modelling) AI assistants in the last year. A
moodboard was then presented, triggering the imaginations of the party so that they can visualise
the scenario within the context of the future world design. These included a variety of
AI-grounded user interfaces, across several applications from minimalistic telecommunications
to wearable medical devices. [Figure 7]
29
Figure 7
Focus Group Insights (6.2)
Topic: Cross comparison of modern day assistants
One of the earlier discussions in each focus group concerned the comparison of physical
retail experiences and online/ ecommerce shopping experiences. Physical shopping was deemed
to have the following qualities: customer service, longevity of experience, sight, smell and feel of
product, assurance of quality, understanding of product context within brand, feeling of community
that shops there, opportunity to travel, better packaging, less faff to return products, instantaneous
purchase, trialling opportunities leading to a better fit, human advise.
Online shopping, in contrast, offers more spontaneity, a greater selection of used products,
fewer crowds, more introspection, reminder of existing wardrobe, 24/7 access, greater product
30
selection, comparability vs other brands, price history, insight into company ethics, more sizing
metrics, quicker navigation, cheaper options.
Topic: Personality and countenance of assistants
The incorporation of an AI assistant personality can be fun and gamify the process, but
personality of a bot would not replace existing personalities of friends - the primary purpose is to
inform and make shopping more efficient, and result in the purchase of more desirable products.
Personalisation of metahumans/ virtual assistant etc. is a secondary function/ game element.
The primary function should be to personalise the user physically. In the case of a Metaverse, it’s
addition should be a platform for product discovery and should act as a lifestyle supplement, not as
an end-goal.
Tone of voice and communication style should evolve with the user and the user’s needs.
Purpose of AI interaction would require a different communication spectrum. User could have
multiple AI personalities they could approach - maybe one who’s more objective and informative,
and one who’s more opinionated/ human.
An AI doesn't have a personality and has no human-like intentions, unlike a best friend who
has known you for a long time and knows your personality likes and dislikes or if you are interested
in trying something new. Input from the AI is verbal or sometimes typed, which might not be
expressive on point, whereas communication from a friend or human is possible through visuals and
gestures. Unless technology allows perfect human replication, the interface will fall into ‘uncanny
valley’ territory, so it would fall short of a real human interaction.
31
Topic: Intention and trust
Intention changes need for a personal connection - if there is prolonged exposure to the
assistant, if ownership falls under user (not retailer) then a more personalised interaction would be
desired. Personalisation, flexibility and countenance would be the ‘next evolutionary step’ for AI
assistant services. Greater efficiency of purchasing is also of paramount importance.
AI should typically offer recommendations based on user history, using algorithm to
occasionally incite discovery. Users raised pros and cons of the algorithmic bubble. Could constantly
gauge interactions with unfamiliar products to decide whether to increase or decrease content-type
fluctuations. Due to an underdeveloped emotional connection, AI’s opinion is less validated making
it easier to digest, so users would engage with it more and expect the AI to be honest.
Trust of service is needed before user can surrender their personal information even if a
service hinges on that information. Context of the facilitator is important - company developing AI
must have a long-standing history of protecting user’s data rights, any discrepancies would be a stain
that’s difficult to look past.
Users would trust a service more if it provided a discovery route to products, rather than
being forceful. Interface can increase ‘discovery’ effect; indicators and data visualisation can be used
to inform users about their own preferences without pushing an agenda e.g. interactive hangers
(simpler communication, less opportunity for influencing, leaning away from screens)
A generative AI that explores what it knows about the user, resulting in a more exploratory
and personalised experience. There is also a preference among users for known algorithms since
sometimes they are seeking comfort and familiarity of the products, they are already familiar with.
Trust and privacy standards are also affected by cultural context; based on what is normalised
at the time. Our expectations for data protection may be lower 10 years from now due to increased
exploitation from other industries.
32
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Virtual Assistants in Luxury Retail

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The Future of Virtual Assistants in Luxury Retail

Foresight & Innovation Internship

UX and Strategy Team (Holition)

Siddharth Menon - sidmenon.design@gmail.com

Shrishti Rastogi - s.rastogi0520221@arts.ac.uk

revolutionize customer interactions and sustainably drive business growth.

The research methodology involves a combination of qualitative and quantitative

AI-based virtual assistant technology.

including personalized recommendations, real-time customer support, and seamless omnichannel

leveraging AI technologies to create unique and exceptional customer experiences while

preserving the essence of luxury and personal touch.

Research Focus & Strategy...…………………………………………………………….14

Scenario and User Journey Mapping...…………………………………………………..24

Human Behaviour (1)

relationships with technology, interfaces and experiences within retail.

fascination with novelty and the fear of missing out on value.

provided shortcuts to decision-making dilemmas, whilst providing them enough information to

consumers to acquire goods and services.

Play-psychology is not only found in humans, but is a by-product of Darwinian

available to them to play in more innovative manners - construction, social-dramatic, language,

Organismal factors such as good health, a physiology conditioned to vigorous/ sustained

motivational resources. Ecological conditions such as optimal environments (weather conditions

would dissuade play due to the threat of social consequences.

As play can be costly to energy resources, it tends to be instigated by motivators.

score-based) demonstrates intelligence, competence with narrative play or coordination/ physical

for achievement can be attributed to progression, completion, perfectionism, loss-aversion and

in play - it may be turn-based, cooperative or community-centric. Play can be motivated by

relaxation purposes. It can be used as a way to dissipate pent-up frustration, culminating in a

meditative or tranquil state of mind.

significant retaining power for an experience.

Exploration can be interpreted across many veins. A basic definition is investigative

exploration, which concerns the examination or analysis of something. Innovation exploration is

into a particular field. Serendipity is a form of informal experimentation, accidental discovery

and spontaneous invention.

In order to effectively explore, the approach should be directed by two orientations -

Self Determination Theory

self-awareness to self-acceptance. Self awareness can be advantageous in improving self esteem,

preserving boundaries, improving communication of needs (and subsequently personalisations)

Organismic Integration Theory concerns extrinsic motivations (i.e. the properties,

determinants and consequences), where behaviour is viewed as an instrument to sway outcomes

autonomous the person will be when enacting the behaviours.

characterised by anxiety concerning competence).

Psychological Needs Theory argues that psychological well-being is predicated on autonomy,

and competence to lesser degrees.

can crucially affect an experience’s level of engagement with its users.

the face of adversity.

complexities of human existence.

innovation and propels humanity forward.

sense of place, enabling us to find solace, belonging, and collective strength.

In recent years, technological advancements have significantly transformed the way we

our human need for authentic and meaningful interactions.

and a sense of community and belonging. As we navigate the intricacies of an increasingly

interconnected world, it is crucial to recognize the profound impact of connection on our

and foster a more compassionate, understanding, and harmonious global community.

Human Behavioural Metrics (1.5)

and user-journeys. [Figure 1]

Human Computing, Hyperpersonalization, and Metahumans explore existing technology and

immersive and interactive experience.

technologies as per their needs and has been building on them.

Finance-based organisations have always embraced emerging technology that improves

Technology is an integral part of modern healthcare, from huge diagnostic imaging

wireless connections. IT industry with hardware and software engineering, Application

recently. AI usage is particularly prominent across sectors.

Further research into emerging technologies focused on UX Design. As the field of

assistance are emerging or already in existence.

industry across the value chain.

Research Focus & Strategy (3)