How Luxury Brands Are Quietly Leaning Into Artificial Intelligence
How Luxury Brands Are Quietly Leaning Into Artificial Intelligence
Publish Date: 2026-04-20 14:20:00
Source Domain: www.forbes.com
London, UK – August 13, 2019: Old Bond street view with flags of famous fashion houses. Bond Street is a major shopping street in the West End of London for luxury designer brands
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Artificial intelligence is rapidly transforming nearly every industry. The luxury space may appear resistant to that change at first glance but he sector has long been defined by heritage, craftsmanship and exclusivity rather than technological disruption. Yet behind boutique doors and atelier walls, the world’s most prestigious brands are increasingly experimenting with AI to reshape operations, creativity and client relationships.
The tension between human craftsmanship and machine intelligence is real. But according to Silvia Coleman, Head of Market Intelligence and VP Strategic Growth at CXG, luxury’s future lies in blending the two rather than choosing between them. “The most sophisticated luxury brands aren’t choosing between tradition and technology but instead using AI to amplify what makes them irreplaceable,” Coleman says. That balancing act comes as AI investment accelerates across the sector. The global market for AI solutions used by luxury brands is projected to grow from about $1.2 billion in 2024 to roughly $5.6 billion by 2034, expanding at more than 16% annually. Meanwhile, roughly 45% of luxury brands are already deploying AI tools to enhance personalization and customer engagement.
Luxury brands are not adopting AI all at once. Instead, the industry is evolving through several stages. The first phase focuses on operational improvements. Many brands are deploying AI behind the scenes to refine inventory forecasting, optimize supply chains and analyze consumer trends. These tools help companies respond more precisely to demand in a market where price increases drove more than 80% of luxury growth between 2019 and 2024. The next stage centers on customer experience. AI is increasingly powering hyper-personalized recommendations, predictive clienteling and…
