Israel’s leading premium and luxury retail group, backed by a $50 million investment, is launching a new division dedicated to developing artificial intelligence in retail technology.
The Irani Group, the company behind multi-brand retailer Factory 54, said in a statement that this new division will operate in-house, developing AI platforms, intelligent agents, and advanced technology solutions across its value chain.
Called F54 AI Labs, this will put innovation at the core of Irani Group’s long-term business strategy.
“The future of retail will be shaped at the intersection of brands, data and artificial intelligence,” said Yifat Irani, co-owner and co-CEO of the Irani Group. “The launch of F54 AI Labs is another natural step in our evolution.”
The Irani Group, which exclusively represents several international brands in Israel including Saint Laurent, Skims and Balenciaga, operates 145 stores serving more than one million customers. Its European division, headquartered in Amsterdam, operates across multiple European markets through strategic partnerships with leading global brands.
“We are not only adopting new technologies—we are building them. Our ambition is to develop breakthrough solutions from Israel that will help shape the future of retail, create significant value for the Group, and support growth in international markets,” she added.
As it advances retail tech, the company appointed Gilad Zirkel as chief technology officer of the Irani Group, who will establish and manage F54 AI labs while setting the direction for the group’s overall technology strategy in Israel and Europe.
This in-house AI division also comes as the group established a NIS 100 million venture investment fund (roughly $33 million) focused on retail, digital commerce and data startups.
Since launching its investment fund in 2021, it has invested in ten startups. Beyond financial investment, the Irani Group said it has served as a design partner, providing product development, pilot programs, and commercial implementation.
Elsewhere in the global fashion industry, luxury brands and retailers have been exploring what AI has to offer to elevate the shopping experience, from AI stylists that recommend outfits and converse with customers to AI agents that power backend operations. In Europe alone, an end-to-end AI transformation can yield the retail industry up to 320 billion euros ($368.7 billion) in five years, according to estimates from McKinsey & Company study.
But unlocking that economic value requires going beyond the pilot phase, the study said, which is a hurdle since not every business is ready for AI. A previous McKinsey report noted that 86 percent of leaders feel that their organizations are not “very prepared” to adopt AI into their daily operations.
