In the fifth edition of their “Luxury & Technology” study, the consulting firm Bain & Company and the Comité Colbert demonstrated the importance of artificial intelligence in the relationship between luxury brands and their customers.
An Essential Digital Strategy. As artificial intelligence plays an increasingly prominent role in consumers’ daily lives (including in the luxury sector), the consulting firm Bain & Company and the Comité Colbert published their study “Luxury & Technology” on the impact of AI on customer relationships and new purchasing journeys.
After analyzing responses from some twenty luxury houses across all luxury sectors (fashion, beauty, jewelry, etc.), the consulting firm and the association revealed that almost a quarter of brands (22%) have included artificial intelligence among their top three priorities for the next three years, compared to just 5% in 2024. At the same time, 61% of respondents consider this technology to be among their top 10 priorities.
However, the results are nuanced when company size and whether the company is part of a larger group are taken into account. While large groups with multiple brands have already finalized plans for integrating artificial intelligence, smaller companies are still in the planning stages.
Furthermore, artificial intelligence currently applies mainly to operational tasks such as administrative services (74%), IT (41%), and supply chain, procurement, and manufacturing (33%). In contrast, the use of this technology for direct customer contact remains relatively limited. According to the study’s figures, only 21% of respondents reported having deployed AI in this area, and 45% are still in the experimental phase.
China and the United States Are Big on AI
A gap between brands and their target audience. While companies remain hesitant to connect AI tools with their customers, consumers are widely using this technology to make purchases. According to Bain & Company and the Comité Colbert, the majority of luxury shoppers (82%) have already used this technology for their most recent purchase.
The figures also highlight the particular appeal of this shopping experience among Chinese and American consumers: 64% and 54%, respectively, reported using artificial intelligence to purchase a luxury item. This comes as no surprise, given that the United States and China are locked in a race in this field: the former plans to invest nearly $700 billion in artificial intelligence by 2026, while the latter has allocated $295 billion over five years.
In general, luxury consumers have used artificial intelligence to learn about products (64%) and compare them. Others also seek advice and inspiration (60%).
GEO is the new SEO
The challenge for brands is therefore to compete effectively for visibility in generative AI search engines, especially since 97% of luxury consumers who use this tool plan to use it for future purchases, as they consider it faster and more impartial in their decision-making.
Just as SEO (Search Engine Optimization) makes content and websites visible on search engines, GEO (Generative Engine Optimization) enables brands to appear in AI-generated responses. According to Bain & Company and the Comité Colbert, approximately 70% of luxury-related searches do not mention any specific brand, and the content generated by these generative search engines often draws on information from third-party sites rather than the brands’ official websites.
To anticipate these changes and remain competitive in the market, experts recommend that luxury houses establish robust governance frameworks for this technology, strengthen their data analytics capabilities, implement measures to enhance the customer journey with AI (such as conversational assistants or digital personalization), and stay informed about developments in this technology.
Read more > Luxury brands on the hunt for U.S. AI leaders
Featured picture: @ UNSPLASH
