Generative AI in the Luxury Industry

Generative AI in the Luxury Industry

The revolution of generative AI is currently reshaping the landscape of Artificial Intelligence, marking the
latest milestone in its evolutionary journey. This emerging technology, commonly referred to as GenAI,
is poised for widespread disruption, infiltrating both personal and professional spheres. Its
transformative impact on various industries is already evident, prompting a surge in AI investments
among executives. A notable 45% of executive leaders have acknowledged that innovations like
ChatGPT have catalyzed increased allocations towards AI, while an even more substantial 67% of senior
IT leaders are prioritizing the integration of GenAI within the next 18 months.


GenAI introduces a host of opportunities that are poised to significantly influence the luxury industry in
the immediate future. The first key opportunity lies in hyper-personalization, enabling enhanced
customer experiences through personalized product suggestions, photo-realistic virtual try-ons, and
virtual assistants imbued with a human touch. Another avenue involves augmenting and assisting
creativity, such as ideation and the generation of visual marketing content like social media posts.
Simultaneously, GenAI presents avenues to reduce complexity and costs by facilitating real-time
generation of allocation and replenishment plans for local store assortments. Additionally, it can
streamline and enhance manual tasks, exemplified by the automation of support function tasks in HR,
legal, and accounting, as well as the seamless creation of online product descriptions.


The potential use cases for GenAI in the luxury sector are vast, spanning the entire value chain. From
personalized marketing campaign creation, marketing content generation, and personalized product
recommendations in Marketing & CRM, to influencing product design & innovation, optimizing supply
chain & logistics through demand forecasting, and refining retail & store operations with store layout
and space optimization—GenAI’s impact is comprehensive. Moreover, it addresses scalability issues and
the trade-off between reach and richness in luxury, extending a personalized experience even to non-
VIC clients and aspirational customers, who constitute a significant majority (~90%) of luxury
aspirational consumers. Through the rapid generation of daily, personalized online digital content and
the extension of 1-to-1 care via GenAI clienteling services, this technology promises to afford the entire
pyramid of luxury customers with personalized, daily interactions.

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