"As artificial intelligence becomes embedded within luxury operations, from marketing and personalization to inventory and clienteling, brands are increasingly doubling down on what technology cannot replicate: emotional connection. Over the past decade, luxury has relentlessly optimized for ROI, investing heavily in data, CRM systems and performance marketing. And at Shoptalk Luxe, vendors and brands alike described deeper AI integration than ever before, with automation now underpinning everything from media buying to e-commerce search."
"But as growth slows and consumers become more selective, executives are questioning whether efficiency and scale alone can sustain long-term value. "At the very top end of luxury, you're not selling a product, you're selling a feeling," said Michael Ward, managing director of Harrods. "People don't come to Harrods just to transact. They come for theatre, inspiration and experiences that stay with them."
Artificial intelligence now supports marketing, personalization, inventory and clienteling across luxury operations while brands emphasize emotional connection that technology cannot replicate. Luxury long optimized ROI through heavy investment in data, CRM and performance marketing, and automation now underpins media buying and e-commerce search. Slowing growth and more selective consumers prompt doubts that efficiency and scale alone will sustain long-term value. Top-end luxury prioritizes theatre, inspiration, private-shopping tiers and feelings to drive repeat visits. Technology reveals customer-behavior patterns at scale but cannot replace atmosphere or intuition. AI is treated as core infrastructure even as human-led experience becomes more important amid fragmented discovery and platform interactions.
Read at Digiday
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