What: Saks Fifth Avenue partners with NLX and AWS to launch Sophie, an AI-powered virtual voice assistant that handles customer inquiries while reducing agent call volume by 20%.

Why it is important: This advancement signals a pivotal moment in luxury retail transformation, where AI integration moves beyond backend operations to directly enhance customer experience while delivering measurable operational benefits.

Saks Fifth Avenue has introduced an innovative AI-powered virtual voice assistant named Sophie through a partnership with technology companies NLX and AWS. The system enables customers to make inquiries about order status, returns, gift cards, store assistance, and price match policies through natural conversations. A distinctive feature of the technology is its dual-channel capability, allowing customers to switch between voice and text communication when sharing specific information such as order numbers or zip codes. The implementation has already demonstrated significant operational benefits, reducing agent call volume by approximately 20%. While maintaining the option for customers to request human assistance, Sophie's deployment represents part of Saks' broader technology initiatives, which include AI integration for personalizing marketing communications and enhancing customer relationships. The company's future plans include expanding the virtual assistant's capabilities to handle additional inquiries, support multiple languages, and potentially extend the technology across other Saks Global brands.

IADS Notes:

Saks Fifth Avenue's implementation of the Sophie AI assistant represents the latest development in its comprehensive digital transformation strategy. According to Retail Insight Network in September 2024, the retailer expanded its partnership with Salesforce to enhance luxury shopping experiences through AI-powered solutions, laying the groundwork for more advanced customer service innovations. WWD reported in April 2025 that this technology integration forms part of Saks Global's broader transformation plan, targeting $500 million in annual cost reductions while maintaining service quality. The initiative builds on the momentum of the $2.7 billion Saks-Neiman Marcus merger, which Bloomberg covered in December 2024, highlighting how technology partnerships with Amazon and Salesforce were central to creating a modern luxury retail powerhouse. WWD revealed in February 2025 that the company had eliminated traditional roles in favor of technology-driven approaches, demonstrating its commitment to innovation. This evolution culminated in June 2025, as reported by WWD, with Saks Global extending its digital transformation through strategic technology partnerships, suggesting that Sophie represents just one component of a broader strategy to revolutionize luxury retail customer service.

Saks Fifth Avenue’s Latest AI Venture: A Virtual Voice Assistant Called Sophie