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Ralph Lauren has introduced artificial intelligence among the criteria it uses to evaluate and reward its executives. The decision, reported by Reuters on October 15, emerges from documents filed with the US SEC. The sustainability goals included in the annual incentives over the past four years have given way to metrics concerning staff training and the spread of AI within the company.
It is an interesting choice for a brand that built its identity on stylistic continuity, without chasing every change in fashion. Ralph Lauren, evidently, now considers knowledge of artificial intelligence a necessary skill even for those who run the business.
The targets set were exceeded and the relevant committee approved a 10% increase in the bonuses concerned. So far, so good. What remains to be understood, however, is how much this preparation translates into concrete results. Training employees to use AI is one thing; demonstrating that the company works better thanks to these tools is another.
I know well how much technology can affect the organization of a business. In fashion, from collection planning to warehouse management, through to distribution and sales, the possibilities are considerable. But without a deep knowledge of the product and of business processes, even the most sophisticated tool risks producing mediocre results.
What stands out most is the replacement of sustainability goals with those dedicated to AI. It does not mean that Ralph Lauren has given up its environmental commitments, but it clearly indicates where the company now wants to concentrate part of management’s responsibilities.
Personally, I think it is right for executives to learn to use these technologies. I would reward them, however, above all for the results they manage to achieve, not for the number of people they have taught to use them.
