Increasing AI use may change consumer behavior, competitive dynamics, and adversely affect Ethan Allen if competitors adopt faster.
“The increasing use of AI, including generative AI and autonomous or agentic commerce tools, may materially change how consumers identify, evaluate, specify, purchase, and manage furniture and workplace solutions. These technologies could alter client expectations, affect the role of dealers, designers, and digital channels, and change competitive dynamics in our industry. If competitors or other market participants adopt or optimize AI-enabled tools more quickly or effectively than we do, or if AI-enabled platforms disintermediate existing sales channels or influence purchasing decisions in ways that do not favor our brand, our sales, margins, and client relationships could be adversely affected.”