‘Luxury’s flaw: Choosing algorithms over artisans’

The luxury sector faces several complex crises, from the erosion of trust to a breakdown in storytelling. One critical challenge now is navigating the balance between technological innovation and the human essence of luxury experiences. In many conversations with luxury brands, I’ve seen a growing urge to integrate AI into the client experience and sales process. However, there’s often not enough emphasis on preserving the human connection. While AI-driven personalization promises unprecedented customization, many luxury clients report feeling increasingly disconnected from brands that rely heavily on these tools. This tension echoes themes I’ve discussed before — how brands can stay authentic while adapting to seismic shifts in consumer expectations. When personalization loses its human touch In a previous column, I examined the growing divide between Western and Chinese luxury brands in adopting new technologies. The most successful businesses understand that AI should enhance human artistry, not replace it. Best practices include training AI alongside master artisans to analyze subtle material qualities, identify trends, and match them with archival designs — leading to more relevant products and elevated quality without compromising craftsmanship. But many brands fall into the trap of using AI to generate impersonal recommendations that alienate instead of engage. Tech-driven messaging without a coherent brand story creates discord. When algorithms suggest products that overlook the emotional context of purchases — like recommending a similar handbag right after a major acquisition — it reveals a failure to grasp client psychology. The solution lies in using AI as a collaborative tool. At forward-thinking maisons, sales teams now leverage AI-generated insights from social media and in-store activity. This allows for a service that evolves with client needs, while maintaining the intuition and discretion only humans can offer. Bridging generational divides through tech While Gen Z consumers expect seamless digital experiences, they often engage less emotionally with fully automated interactions. Their comfort with technology masks a deeper desire for authentic connection — a point many brands miss. This is where Gen X’s position as digital adapters becomes invaluable. Their fluency in both analog and digital worlds makes them ideal mediators. Some innovative brands are now using AI to track client journeys across decades, ensuring that family heritage informs — but doesn’t dictate — individual experiences. Early adopters are already seeing measurable improvements in client retention. For older generations, successful AI mirrors the discretion of a trusted concierge. Advanced systems now analyze communication patterns to detect unspoken needs, alerting human staff at emotionally sensitive moments. This is critical as brands work to rebuild lost client trust. Strategic priorities for human-centric AI To preserve the human connection, several essential strategies emerge: Craftsmanship-centered AI development: Involve master artisans in training algorithms to amplify, not replace, traditional skills. Several luxury houses have already reduced material waste using this method while maintaining artistic integrity. Balance Gen Z and Gen X perspectives: For example, virtual showrooms can become more relevant when paired with tactile customization options, driving growth across demographics. Ethical data stewardship: Luxury clients reward brands that take data responsibility seriously. Leading houses now depersonalize sensitive information post-purchase, fostering consumer trust. Luxury is deeply human — even in an AI reality Ultimately, cultural storytelling always outperforms technological spectacle. This insight has become existential. Brands that will thrive treat AI as a collaborator and enabler, not a replacement. Technology should create more space for meaningful human interaction. Luxury brands should regularly conduct “human impact audits” of their AI systems. For every algorithm deployed, ask: Does this deepen our clients’ sense of feeling valued? True value in luxury lies not in what AI can do — but in how it makes us feel. 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.

‘Luxury’s flaw: Choosing algorithms over artisans’

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Published May 05, 2025

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‘Luxury’s flaw: Choosing algorithms over artisans’