Understanding the Role of Artificial Intelligence (AI) in the Diamond Industry
Artificial intelligence leverages computers and machines to mimic the problem-solving and decision-making capabilities of the human mind. It has come into our lives rapidly, and transformed the world in many positive waysmaking it easier for people to contact friends, send emails, and ride a ride-sharing app. But when it comes to AI and something as personal as engagement ring shopping, is there a place for automation?
To answer this, it’s important to first understand the longevity behind diamonds as well as the reason jewelry even exists today. You may be surprised to know that most diamonds are at least 990,000,000 years old, with many as old as 3.2 billion years, (Source). It has been discovered that the first jewelry making occurred 142,000 to 150,000 years ago by Archaeologists working in the Bizmoune Cave in southwest Morocco, with the sole intent of expressing identity, (Source). Understanding that jewelry making was born from the desire to express oneself via art and is linked to one's identity, greatly contradicts AIs automated approach to jewelry shopping.
Blue Nile, a well known jewelry company that started entirely as an online retailer and disrupted the diamond industry, is now opening multiple brick and mortar retail stores due to the realization that buying something as personal as an engagement ring or heirloom piece requires communication, education and observing the item in person. They have foregone their online only model to meet consumers needs and accommodate those who feel never seeing their diamond in person before purchase is too risky.
Diamonds have value in terms of cash money, and obviously a strictly graded diamond is more valuable than a poorly rated diamond. There is always a reason why one diamond is less expensive than another. More often than not, potential buyers believe the difference in price is due to retail margins, however the most common reason for price inequality is diamond inequality. This is not something AI bots take into account because there are so many variables to consider. Be sure you’re asking these important questions to any diamond retailer you work with.
The most important thing to consider when buying a diamond is both the diamond and the dealer, not just the diamond report. Diamond reports do not assign dollar amounts, they only describe diamond characteristics. This is where real life jewelers play a vital role in helping to determine the price and guide you around getting the best value for your budget, a talent that cannot be replicated by AI.
Did you know that online diamond stores do not offer any quality guarantee? If something is in fact wrong with the diamond you purchased, (say an imperfection you weren’t expecting, or the color is off), it would result in you overpaying for a diamond you thought was a great deal. The truth is there is a lot to consider outside of the 4Cs that someone who isn’t in the diamond profession would have no way of knowing, say a robot. Read more about how online retailers cannot offer aquality guarantee.
As a retail business owner, we believe our mission is to add value to the consumer and help guide in the purchasing process in order to ensure the customer makes an educated decision at a fair price and leaves feeling proud of their purchase. Explaining why one diamond is half the price of another is important information to have in real time when considering diamonds.
Twelve years ago, when La Bijouterie was formed, we made the purposeful decision to open a brick and mortar location, not an online store, because we value the importance of helping customers in person, especially when making the biggest and most emotionally charged decisions of their lives. It seems as though today’s consumers value the same.
While Blue Nile may use AI to help determine style suggestions based on purchase history and tracking, there’s a good amount of marketing that goes into what you’re being targeted without really understanding why or the unique footprint of the stone you’re considering.
In the case of engagement ring shopping, AI takes the humanization, the identity of expression, and the personalization out of something as intimate as picking out a tangible symbol of your love for the person you wish to spend your life with.
At La Bijouterie, we take a personalized 1:1 in-person appointment approach. We adopted this way of conducting business over 6 years ago because it allows us to educate the potential buyer and it has proven to be most successful. Now more than ever, customers are seeing the value of dedicated and uninterrupted appointments. It’s a time to ask questions and express any concerns you may have.
Interested in setting up a Phase I appointment? You can do sohere. To learn more about the “Reasons To Think Twice Before Purchasing a Diamond Online,”click here. Want to learn about the 4 C’s of Diamond purchasing,click here. As always,reach out to us with any questions you may have. We love hearing from you!
At Your Service,
Founder of La Bijouterie