Factory 54 owner Irani Corp launches $50 million AI push into retail tech
New F54 AI Labs will develop AI agents for customer experience, supply chains, and digital commerce.
Irani Corp, the importer of international fashion brands and owner of the Factory 54 retail chain, is expanding its technology activities with the launch of F54 AI Labs. The new technology arm will focus on developing artificial intelligence and retail-tech products, with an investment of $50 million planned.
The initiative follows the establishment of a startup investment fund in 2021, through which the group invested NIS 100 million. To date, Factory 54 has invested in ten startups in the fields of retail, digital commerce, and data, and serves as a platform for piloting and implementing technological solutions.
The new unit will develop platforms, AI products, and AI agents focused on customer experience, digital commerce, supply chain management, marketing, operations, and data-driven decision-making.
Yifat Irani, co-CEO and owner of Irani Corp, told Calcalist: “We work with many technologies. In the AI era, the idea is to take all the data, knowledge, and experience we have in marketing, content, and products, everything we do in-house, and build a technological arm that transforms human work into technological work. The goal is not to replace people, but to make their work more interesting and efficient. Today, we all do many inefficient things at work. If technology takes over part of that load, people will have more time to think and be more creative.”
She gave the example of store salespeople: “They will remain, but they will have technology that helps them provide better customer service. The technology will help create value for customers and improve supply chain operations. It’s about managing processes with AI that acts as a ‘brain’ analyzing large amounts of data. The goal is to create systems that take human ideas, enhance them, and base them on much broader datasets. Our ambition is to develop innovative solutions from Israel that will influence the future of retail, create significant value for the group, and serve as a foundation for international expansion.”
As part of the move, Gilad Zirkel has been appointed Chief Technology Officer (CTO) of Irani Corp. He will lead the group’s overall technology strategy and oversee the development of technology, products, and artificial intelligence in Israel and Europe. In his previous role, Zirkel was involved in the development and implementation of AI tools at the Aleph venture capital fund.
Irani Corp is one of Israel’s largest fashion retailers and exclusively represents international fashion and footwear brands, including Yves Saint Laurent, Balenciaga, Ralph Lauren, Hugo Boss, Lululemon, Skims, Birkenstock, and Asics. The group operates 154 stores and employs 2,200 people in Israel and Europe. It is headquartered in Amsterdam, which serves as the base for its international operations.
