2026 AI outlook: When human value becomes the real advantage

We are leaving the honeymoon phase of artificial intelligence. In 2024 and 2025, the luxury industry treated AI like a new toy. Brands launched generative campaigns and experimented with virtual try-ons. This was often done to generate PR rather than value. As we look toward 2026, the game is changing. The wow factor of technology is gone. AI is simply infrastructure. For luxury brands, this transition presents a dangerous trap. The temptation to use AI to boost efficiency, automate customer service, or streamline content is immense. However, this is a strategic error. In 2026, the brands that win will not be those that use AI to replace humans but use it to make their humans more powerful. The China speed challenge Nowhere is this shift more critical than in China. The Chinese digital ecosystem has evolved into a universe of its own that is distinct from the rest of the world. With proprietary tools like DeepSeek and a seamlessly integrated social commerce network, the country boasts a pace of innovation that is suffocating for legacy organizations. Western brands are struggling to keep up. I observe a widening gap between the agility of local digital players and the slow adaptation of global luxury houses. In 2026, relying on a global tech stack adapted for China will no longer suffice. The local tools are faster, smarter, and more deeply integrated. However, technology is not the biggest threat. The real crisis is human. High tech, low emotion China is the most digital market in the world. Logic suggests it should also be the most efficient. Yet when we look at client satisfaction data, we see a startling paradox. Client satisfaction scores are frequently lower in China than in other major luxury markets. Why is this happening? After recently conducting a luxury experience masterclass in Shanghai for a major client, the answer became clear. Chinese clients have the highest expectations in the world. They live in a digital environment of instant gratification and seamless convenience. When they walk into a physical store, their benchmark for excellence is incredibly high. Most brands fail to meet these expectations. While they pour millions into digital infrastructure, they severely underinvest in training frontline teams in mainland China and Hong Kong. The result is a significant service gap that technology cannot bridge. In fact, AI can make it worse: as digital interactions become flawless, human mediocrity becomes more obvious. The human algorithm This is the key insight for 2026. The more digital the world becomes, the more valuable the human touch becomes. But the old version of client service is dead. In my recent projects, I have seen that clients no longer want transactional service. They can get that from an algorithm. What they want now is real emotional connection. This is also a key insight we saw in our projects with high-net-worth and ultra-high-net-worth individuals. They expect empathy. They want to feel understood. Hence, the winning strategy for next year is to flip the script. Don’t use AI to talk to your clients. Instead, use it to empower your staff. Imagine a store associate who is empowered by predictive data: they would not only know what a client bought last year but also anticipate what they are likely dreaming of today. AI provides intelligence; humans provide emotion. The way forward The industry is facing a bifurcation. On one side, we will see brands that use AI to regress to the mean. They will automate their way deeper into the sea of sameness. On the other, we will see brands that double down on delivering extreme human value supported by the best technology. For Western brands operating in China, the warning is stark. You cannot out-tech the local market. The technological barrier to entry is too high. The speed is too fast. Your only sustainable competitive advantage is the emotional connection your people create. If you are not currently retraining your teams to move from taking orders to creating emotions, you are already behind. In 2026, technology will be the baseline. The human factor will be the ultimate luxury. This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders,” and advisor to some of the most iconic luxury brands in the world. He serves as an executive professor of luxury strategy and pricing at Pepperdine University in Malibu and as a professor of luxury at NYU, New York. Daniel has authored best-selling books on luxury management in English and Chinese, and is a respected global keynote speaker. Daniel conducts in-person masterclasses on various luxury topics across the world. As a luxury expert featured on Bloomberg TV, Forbes, The Economist, and others, Daniel holds an MBA and a Ph.D. in luxury management and has received education from Harvard Business School. Sign up for his online luxury masterclasses at the Jing Academy.

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2026 AI outlook: When human value becomes the real advantage