Last week, I attended the 2nd edition of the Vogue Business & Google Luxury AI Summit in Paris where the speaker line-up explored the expanding role of AI in the luxury industry, focusing on opportunities, challenges, and real-world applications across Fashion, Beauty, and Retail.
Scroll for my key insights that look set to shape AI’s role in luxury.
Key Themes & Takeaways
1️⃣ AI is Reshaping Luxury, But Not Replacing Human Craftsmanship
- AI is enhancing rather than replacing luxury’s core values – craftsmanship, storytelling, and emotional connection.
- Brands like Gucci are using AI for backend optimisation (inventory, supply chain, demand forecasting) but keep advertising and creative direction AI-free to maintain brand authenticity.
- Luxury consumers crave and expect human experiences – AI’s role is to amplify personalisation, not replace in-store engagement.
2️⃣ AI is Powering Smarter, More Personalised Consumer Journeys
- Google’s AI-powered solutions (e.g. AI Overviews, Lens, Local Inventory Ads, Performance Max) are reshaping search, discovery, and sales conversion in luxury.
- Luxury shoppers are more digitally influenced than mass-market consumers (80% of luxury purchases have some digital touchpoint).
- L’Oréal’s AI-powered beauty tech is bringing hyper-personalisation at scale, from AI-driven skincare diagnostics to virtual try-ons and AI-powered beauty coaching.
3️⃣ AI is Creating a More Seamless Omnichannel Experience
- AI is bridging online and offline by providing deeper insights into consumer preferences:
- Alpha’s AI clienteling tool gives sales associates instant access to customer preferences, increasing personalisation and conversion rates (40% vs. <1% for newsletters).
- Moda Resa’s AI-powered showroom scheduling is eliminating inefficiencies between brands and buyers.
- Google’s Omnibuddy AI optimization tool is maximizing sales across all channels.
4️⃣ AI-Generated Content & Hyper-Realistic Digital Assets are on the Rise
- Genera is redefining digital fashion photography with AI-generated models and 3D fashion assets, allowing brands to create hyper-realistic content without physical shoots.
- Covision Media’s AI-driven 3D scanning is being used by Inditex, Meta, and Nvidia for hyper-accurate 3D product visualization.
- AI-generated fashion assets are accelerating design-to-production workflows, reducing costs, and enhancing product visualization in gaming, virtual experiences, and e-commerce.
5️⃣ AI Voice & Conversational AI Are Scaling Customer Engagement
- Eleven Labs’ AI-powered voice technology is humanising AI-generated speech, making it more expressive, localised, and inclusive.
- AI-generated agents can now handle customer service, product navigation, and feedback collection—reducing operational costs while improving personalisation.
6️⃣ AI is Driving Inclusivity & Accessibility in Luxury
AI is playing a transformative role in expanding inclusivity across fashion, beauty, and retail, making luxury more accessible to a wider audience.
- L’Oréal’s AI-powered Shade Finder analysed consumer data and identified missing foundation shades, leading to the creation of more inclusive beauty products.
- Maybelline’s AI-powered virtual makeup (integrated into Microsoft Teams) allows anyone to try a polished makeup look, increasing accessibility in professional settings.
- HAPTA (by Lancôme & Verily) is an AI-powered motion-stabilising makeup applicator, helping individuals with limited hand mobility apply products independently.
- AI-powered text-to-speech tools are making digital content more accessible by providing realistic, expressive AI-generated voices.
Challenges & Barriers to AI Adoption
1️⃣ Consumer Expectations for Luxury Are Higher Than Ever
- Virtual Try-On technology is not yet at the level luxury consumers expect—the quality of rendering and realism needs major advancements.
- Luxury consumers want real experiences – Gucci & Kering are hesitant to implement GenAI-generated advertising to protect brand storytelling and authenticity.
2️⃣ AI Integration Still Faces Organisational Resistance
- While AI can enhance productivity, adoption remains a cultural challenge – many brands still operate on legacy systems.
- Smaller brands lack resources to leverage AI fully, while bigger brands struggle with agility and real-time data integration.
3️⃣ Ethical AI & Data Transparency Are Critical
- Kering is actively supporting the EU AI Initiative, ensuring AI development is responsible, transparent, and aligned with luxury values.
- AI-driven personalisation relies on consumer data—trust and ethical handling of this data will be a major determinant of AI’s success in luxury.
Case Studies & Stats
✅ Google AI-powered luxury retail tools → +12% increase in in-store visits (Tag Heuer case study).
✅ L’Oréal’s AI-driven skincare diagnostics → 80% accuracy in skin type assessment based on 150,000 dermatology data points.
✅ Lancôme‘s AI-powered shade matching → New inclusive foundation shades based on AI-driven consumer data.
✅ Alpha’s AI-powered personalization → 40% conversion rate vs. <1% for brand newsletters.
✅ Brands using AI-driven 3D content (Inditex, Meta, Nvidia) → Increased e-commerce sales conversion through hyper-realistic visualization.
AI in Luxury: Looking Ahead
📌 Short-Term (Next Year): AI will continue enhancing supply chain optimisation, operational efficiency, and omnichannel strategy.
📌 Mid-Term (Next 5 Years): AI will bring digital luxury experiences closer to the in-store experience, elevating online personalisation without compromising luxury’s human and emotional core.
📌 Long-Term: The rise of AI agents, hyper-realistic virtual experiences, and autonomous decision-making. AI will reshape luxury, but only if it aligns with brand heritage and human connection.
My Final Thought
AI is no longer just a tool for efficiency – it is transforming how luxury is discovered, personalised, and experienced. From hyper-realistic digital content to AI-powered clienteling, brands are leveraging AI to enhance creativity, deepen personalisation, and unlock new levels of engagement.
But luxury is, at its core, about craftsmanship, heritage, and human connection. While AI can amplify the experience, brands are drawing a clear boundary – it will never replace the artistry, emotion, and storytelling that make luxury truly exceptional.
The future of luxury isn’t AI-driven, it’s AI-empowered. AI technology will serve to elevate, not replace, the human touch.
