How HYPERVSN AI Human Builds Relationships in Switzerland’s Most Personal Department Store

Meet Emilia. Since November of last year, she’s been bringing a smile to customers’ faces at the Loeb department store in Bern, Switzerland. But her charm and witty banter aren’t the only things delighting shoppers. You see, Emilia isn’t just any shop assistant. She’s an immersive representation of the future of retail – a life size, AI-powered, 3D holographic avatar. Just a few months into her new role, Emilia has helped thousands of consumers with queries on everything from where to find funny t-shirts to directions to the nearest café. In this case study, we take a look at Emilia’s impact on the store, the larger potential of AI [Holographic] Humans – also known as digital avatars – and what the future holds for this customer experience innovation. 

Retailtainment with a Personal Touch

“It’s something new, something modern.”– Martin Stucki, Chief Digital Officer at Loeb

According to Data Bridge Market Research, the global AI Human market is valued at $4.59 billion and expected to grow 30% year-on-year until 2032, when the market will reach an impressive $39.63 billion. Their research identifies the retail industry as the fastest growing market for these digital avatars, “fuelled by increasing use of AI avatars for personalised shopping experiences, virtual try-ons, and customer engagement”. It’s no surprise that retail brands are fast adopters of this technology. With increasing pressure from the convenience of online shopping, and consumer demands higher than ever, physical retailers must innovate to survive. 

Founded in 1881 and still run by the Loeb family, this famous department store has become a landmark in Bern, affectionately referred to as ‘the Harrods of Bern’. Their commitment to an elevated customer experience is evident throughout the store; a dedicated kids’ area, a beauty salon, a men’s lounge complete with gaming and drinks. Martin Stucki, Chief Digital Officer, shares that Loeb achieves their tagline ‘the most personal department store in Switzerland’ by using ‘retailtainment’ – retail plus entertainment – as their winning strategy. By combining excellent service with fun, immersive and unexpected experiences, Loeb keeps customers coming back. This was exactly their aim with the HYPERVSN AI Human.

How AI Humans Emerged

AI humans – also known as digital avatars or digital humans – are virtual representations of humanoid beings powered by artificial intelligence, with the ability to interact with users, simulating human-to-human conversation. Though avatar technology has been around for decades – most popularly associated with gaming – it has seen vast improvements as the access and application of artificial intelligence has skyrocketed. Thanks to integration with AI – specifically GenAI – digital humans now enable more fluid, context-aware conversations and have broadened their use in customer-facing roles.

Within the field of AI Avatars, technological advancements continue to make these virtual assistants exponentially more impressive. As EY note, “AI Humans have evolved [from simple chatbots] into sophisticated, tailored entities capable of providing personalised experiences”. Pushing beyond the boundaries of 2D interactions, HYPERVSN’s revolutionary entry into the market combines the intelligence of AI Avatars with a 3D holographic ‘body’, making the experience more immersive, engaging and memorable.

Loeb chose HYPERVSN because they wanted more than just an intelligent assistant. With HYPERVSN’s hyper-realistic digital human, customers are entertained, shocked and surprised as well as being supported. “We first came across HYPERVSN in New York, where we saw the technology in action”, said Martin. “HYPERVSN offered fast, advanced technology, and we were impressed – and now we have Emilia here in our store!”

Loeb’s AI Human Hyper-Localisation

“I think most customers just find Emilia really cool.”– Martin Stucki, Chief Digital Officer at Loeb

Emilia came to life through advanced motion graphics, high-level animation and an LLM loaded with data from Loeb – all managed by HYPERVSN. At Loeb, the customer comes first, so it was important for Emilia to feel representative of the department store’s audience. The HYPERVSN AI Human offers in-depth customisation of everything from appearance to character. Taking advantage of this, Loeb created an avatar that is smart, witty and speaks French, German and English fluently. Dressed in a casual yet stylish outfit featuring the Loeb logo, Emilia’s look seamlessly reflects Swiss convention with an innovative spirit, proudly representing what Loeb stands for. 

The most crucial aspect of Emilia’s creation was ensuring authenticity and representation for the Bernese audience. Localisation through Emilia’s fourth language was the key to success. Berndeutsch is a unique Swiss German dialect local to Bern. Through rigorous training and working closely with the Loeb team, we’re proud to have created a first-of-its-kind digital human that can understand such a rare dialect. Martin notes that customers do speak to Emilia in Berndeutsch as their habitual everyday language, aiding in her ability to speak it more naturally over time. 

While interactions with Emilia might feel magical to customers, they are the result of a carefully crafted suite of tools.

Customers simply start the conversation by tapping the tablet in front of the hologram. They speak to Emilia through the mic, this information is fed to Emilia’s digital brain through speech-to-text (STT), she formulates a response using ChatGPT and/or her LLM database, this response goes through a text-to-speech (TTS) module, and then Emilia speaks back to the customer. This whole process happens within seconds. 

The Role of AI Humans in Retail

“Hologram avatars should clearly be used as a complement to human service – for information, guidance or simple questions.”– Gianluca Scheidegger, Senior Researcher at the GDI Gottlieb Duttweiler Institute

There’s a misconception that technologies like Emilia are created for cutbacks. In truth, the possibilities for AI Humans are vast, and their application ultimately depends on the specific roles they’re assigned in each use case. Martin has always been clear that the role of the AI Human for Loeb is not to replace human workers, but rather to make their job easier (and more entertaining!). “Emilia replaces no one; she is an addition,” says Martin. “She can answer questions about anything, highlighting what we offer and where items can be found.”

For Loeb, Emilia represents a high-tech brand ambassador, designed to be a central knowledge hub and wayfinding system for the comprehensive range of brands, products and services housed in the store. Beyond just sharing information, Emilia aligns with Loeb’s mission to provide friendly, competent customer service. There are four key areas where Emilia excels:

1. Navigation & wayfinding: Positioned close to the escalators on the first floor, Emilia is in a prime position to support shoppers with navigating the huge department store. “Where is the bathroom?” is one of the most commonly asked questions, with customers also seeking directions to specific brands, products and Loeb’s special services like the café.
2. Products, collections & brands: Emilia has been extensively trained on all things Loeb, including details on each brand the store carries. In response to one user’s enquiry about what she could buy a dear friend for her birthday, Emilia replied: “How about a beautiful piece of jewellery from our selection on the ground floor? Or perhaps a fragrance from the perfumery, also on the ground floor? If she’s feeling creative, a DIY kit from the craft department on the third floor could be a great idea. Happy shopping!”  
3. Sales & promotions: Boosting the impact of printed materials and in-store announcements, Emilia ensures shoppers are aware of any sales and promotions that might be of interest to them. She is trained to fold these offers naturally into conversation, ensuring they come across as recommendations rather than pushy sales tactics.  
4. Dining & services: Loeb has created a world that has everything you need for a full day out. Beyond shopping, there are place to eat, relax and even get pampered. Emilia expertly advises customers on where to find these extra services. 

Dimitrios Stefos, who works as a sales assistant at Loeb said, “…she keeps getting smarter, and her sense of humour and personality are becoming more and more interesting”.

Real World Results

“[Having Emilia in-store] also saves time. She gives clear information about where things are.”– Esther (82), A Loeb customer

Being an early adopter undoubtedly comes with risk. But Martin emphasises Loeb’s commitment to investing in innovation and leading from the front. And it’s an approach that seems to be working for them. Emilia is showing excellent results in her new role:

1. Customer engagement: Emilia is engaging in, on average, 50 conversations each day with Loeb customers. 
2. Education & innovation: Some are concerned that digital humans will widen gaps in accessibility rather than closing them, by appealing to only tech-savvy customers. But Martin shares that Emilia is giving many customers their “ChatGPT moment” i.e. their first interaction with AI. This is also relevant as many feel fatigued by AI and hesitant to engage with another “robot.” Emilia’s concept and sense of physical presence make customers like Gina, 62, conclude: “I think it’s cool. After all, we can’t shut ourselves off from AI.”
3. Immersive interactions: The team at Loeb are delighted with the interactions they see. From children laughing to adults looking genuinely surprised, Emilia’s role as entertainer is definitely being fulfilled. As Dimitrios Stefos comments, “We’re really pushing that “retail-as-entertainment” angle forward, so that customers feel genuinely entertained”. 
4. Real-time shopper support: According to research by Gianluca Scheidegger of the Gottlieb Duttweiler Institute, Swiss customers are largely satisfied with sales staff, however, they see room for improvement in staff availability and product expertise. Emilia is directly addressing this problem with 24/7 availability and her extensive knowledge library. For one shopper looking for the perfect Valentine’s gift for a man, Emilia gave an impressive list of recommendations, including “an elegant belt from Anderson’s or Tommy Hilfiger from the men’s department on the first floor…a high-quality perfume like Tabac or Hugo Boss from the perfumery on the ground floor…[or] a selection of fine wines or chocolates from the confectionery on the ground floor”. 

A typical sales assistant role has a three-month probation period. It’s safe to say that Emilia has passed hers with flying colours. This futuristic yet relatable technology fits right at home in Switzerland’s most personal department store, and the future looks bright for this type of innovation within the retail space in general. Martin Stucki is proud of how Emilia adds to his ‘retailtainment’ strategy and she has become a valued member of his retail team. He puts it simply “Emilia makes people smile”.