Israeli Fashion Retailer Factory 54 Launches AI Lab with $50 Million Investment
Irani Group, the importer of international fashion brands and owner of the Factory 54 retail chain, is expanding its technological activities by establishing F54 AI Labs. This new tech division will focus on developing artificial intelligence and retail technology products, with an investment of $50 million. The move follows the group's 2021 launch of a startup investment fund, which invested 100 million shekels in ten startups specializing in retail, digital commerce, and data, using Factory 54 as a platform for piloting and integrating innovative tech solutions.
F54 AI Labs will develop AI platforms, smart agents, and products aimed at enhancing customer experience, digital commerce, supply chain management, marketing, operations, and data-driven decision-making. Co-CEO and owner Ifat Irani explained that the goal is to leverage the group's extensive data, marketing, content, and product knowledge to transform human work into more efficient and engaging tasks, not to replace employees. She emphasized that store salespeople will continue their roles but will be supported by technology to provide better service and add value to customers.
Irani highlighted the use of AI to manage processes and improve human capabilities based on broad data analysis, aiming to create innovative solutions from Israel that will impact the future of retail and drive growth in international markets. As part of this initiative, Gilad Zirkel was appointed Chief Technology Officer of Irani Group to lead the overall technology strategy and AI development in Israel and Europe. Zirkel previously worked on AI tools at the venture capital fund Aleph.
Irani Group is one of Israel's largest fashion retailers, exclusively representing global brands such as Yves Saint Laurent, Balenciaga, Ralph Lauren, Hugo Boss, Lulu Lemon, Skims, Birkenstock, and Asics. The group operates 154 stores and employs 2,200 workers across Israel and Europe, with headquarters in Amsterdam supporting its international brand activities.
