Redefining the Luxury Consumer Experience
Luxury is no longer just about the product—AI is transforming it into a relationship between brands and consumers, offering hyper-personalised experiences at an unprecedented scale, according to Louisa Livingston.
Artificial Intelligence is rapidly transforming industries, and the luxury sector is no exception. As AI moves along its ‘hype cycle’, the impact of tools like ChatGPT on luxury brands and their consumers has become increasingly evident. With consumer demand shifting, and the luxury market experiencing uneven growth, AI offers a powerful solution to navigate these changes.
According to McKinsey, 73% of fashion executives consider generative AI a priority.
This shift points to a new era where AI’s influence extends beyond operational efficiencies, to redefining consumer expectations and interactions in luxury.
Personalisation at Scale: The New Luxury Standard
AI’s most significant impact on luxury lies in its ability to personalise experiences at scale. Luxury is not just about the product but the relationship between brands and consumers. In this domain, AI acts as an enabler of hyper-personalisation, tailoring services and communications to individual preferences. AI-powered platforms can remember customers, learn from previous interactions, and provide recommendations that feel uniquely crafted.
This level of customisation was once reserved for the ultra-wealthy with personal shoppers but is now accessible to a broader range of consumers through AI. Services are now accessible 24-7 with indefatigable responses. These consumers are thus presented with and buying from AI curated responses which is changing the way they connect with brands and find products for themselves. Powerful recommendation engines are changing the way luxury customers shop. Harrods, for example, underwent a huge data re-platforming to allow for a 360 view of their customers and improve their modelling capabilities.
One standout example of this shift is Codex Beauty Labs, which leverages AI to transform the skincare industry through hyper-personalisation. Their machine learning models have been trained on thousands of facial conditions, enabling the AI to instantly recognise unique skin types, concerns, and conditions. By analysing vast data sets, the AI can accurately recommend the most suitable product range for each individual consumer, ensuring a level of precision and customisation previously reserved for in-person consultations. Eleanor Jones, Chief Business Officer at Codex Beauty Labs, believes consumers’ purchasing choices can be influenced by the AI recognising and recommending the exact products thus leading to a more streamlined and satisfying experience.
Luxury brands are also leveraging AI to create virtual experiences, such as virtual try-ons and AI-powered stylists. While these innovations enhance the consumer journey, they also challenge the traditional luxury model that thrives on human touch and exclusivity. As Louise Cox, a retail expert points out, “you wouldn’t purchase a Gucci handbag at a self-checkout.” This sentiment underscores the delicate balance luxury brands must maintain—utilising AI to scale services while preserving the intimate, personal feel that defines luxury.
PROMPT, a book about harnessing the power of generative AI and large language models to support audience growth, explores examples of how to adapt messaging and tone to target customers by identifying a brand’s key consumer segments and ensuring a personalised brand voice – AI can help you identify those groups and write scripts for both customer experience and marketing that will connect, support and influence them along their customer journey without compromising your brand’s identity.
AI as the New Artisan in Product Development
AI’s role extends beyond consumer interactions to the core of product development and design. Tools like those developed by Not Quite Past, an AI startup generating tile designs inspired by long-dead artisans and historical genres uses machine learning and customer prompts to develop the patterns. Image generation tools that have been limited to date are now starting to be used in earnest by all sorts of brands and allow designers to work faster and more efficiently.
Brands must carefully curate their use of AI, ensuring it augments rather than replaces the traditional markers of luxury.
Forbes calls AI ‘the unseen artisan reshaping the tapestry of luxury’ through data-driven insights and creative algorithms. This blend of technology and artistry is subtly influencing consumer desires by introducing new, AI-driven aesthetics that maintain a brand’s heritage while pushing the boundaries of design.
The Future of AI in Luxury: Predictive Analytics and Ethical Considerations
True high-end luxury consumers are difficult to research and data on them is hard to obtain. AI can be used to generate analytics at scale and drive understanding of this group to deliver to them successfully. Predictive analytics are transforming how brands anticipate consumer needs. By analysing data from various sources, including social media and global fashion events where this type of consumer is visible,
AI can help brands predict what luxury consumers might want before they even know it themselves.
This capability is invaluable in a world where consumption patterns are increasingly influenced by a global network of influencers and celebrities. The curation of content and products can guide consumer preferences in the same way our newsfeeds influence our political persuasions, so our absorption of fashion trends influences our style and ultimately our purchasing behaviour. Adding this to customer behaviour and interaction data would create a powerful tool to support data-backed strategic decisions at a customer level.
The use of AI in luxury also raises important ethical questions. The luxury industry thrives on its ability to make consumers feel unique and valued. As AI becomes more pervasive, there is a risk of data misuse or the erosion of the personal touch that defines luxury experiences. Satya Banerjee, course leader for the MSc in Fashion Analytics and Forecasting at London College of Fashion, suggests that while AI offers enormous potential, the luxury sector must approach it with caution. He advocates for collaborative data sharing under an ethical framework to fully harness AI’s capabilities without compromising consumer trust.
The Path Forward for AI and Luxury
AI is undeniably reshaping the luxury landscape, driving innovations that enhance consumer interactions and personalising experiences at an unprecedented scale. AI can elevate the luxury experience, but it is not a substitute for the human touch that lies at the heart of true luxury.
The brands that will thrive are those that leverage AI’s capabilities and investigate the art of the possible while maintaining the artistry and personal connection that define their heritage. The future of luxury will be shaped by how well brands integrate AI into their operations without losing sight of what makes luxury special — a deep, meaningful connection with each consumer.
Louisa Livingston, Founder, Forward Thought Ltd. Louisa helps companies and brands grow and has worked with some of the world’s most prestigious luxury and entertainment brands. From EMI Music to Hachette and Harrods she has built Consumer Insight, CRM and Innovation capabilities that genuinely help make better decisions. Last year she co-authored a book in a series called PROMPT all about how large language models can help drive growth in Fashion Retail. Right now she is busy developing AI-led methods to understand UHNWI and luxury consumers enabling a deeper connection to how these particular consumers behave and respond.
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