Global Powers of Luxury Goods 2023

The luxury industry embraces Artificial Intelligence (AI)

Luxury brands have traditionally represented the pinnacle of craftsmanship and exclusivity. However, in recent years, the industry has been at the forefront of embracing technology and digitalization, exploring new frontiers. AI, in particular, is making its presence felt in the luxury sector. Luxury brands are leveraging AI to provide personalized product recommendations, styling advice, and real-time customer support through GenAI-powered chatbots and virtual shopping assistants. This technological transformation aims to create a more unique and enjoyable shopping experience.

Towards a circular economy

The luxury industry is also advancing toward a circular economy model, a trend supported by AI and technology. Digital Product Passports (DPP) and Digital IDs are being deployed to document a product’s sustainability and circularity throughout its entire lifecycle, from design to end of life. The benefits of these initiatives are manifold, including increased consumer trust, improved brand sentiment, reduced risk of greenwashing, comprehensive product tracking, a decrease in the number of goods in circulation, and the exploration of potential new business models.