AI is reshaping both the art and luxury industries, challenging traditional notions of creativity, authenticity, and customer experience. From artists using AI as a medium to luxury brands leveraging data for hyper-personalisation, the technology presents both opportunities and risks - particularly around craftsmanship, consumer trust, and privacy.
In the latest excerpt from our Luxury Insights Report on Art, AI, and the Future of Creativity, published with ArtTactic, Sian Rodway, COO of MdrX, shares her perspective on AI’s transformative impact and how brands can navigate the balance between innovation and tradition.
How do you see artificial intelligence transforming traditional notions of originality and authenticity in the art world, particularly with artists like Refik Anadol and Mario Klingemann using AI as a creative medium?
We will see whether audiences truly value art generated by machines. There is a threat of devaluing human art, especially given how little time it takes to create an AI-generated output. However, audience responses are likely to be as nuanced as they are with human-generated art, and I believe there will continue to be a market for human creativity. This also raises the question of how we value the creativity of a human who can build machines capable of originality.
Some artists - like George Fox - have embraced AI to foster audience participation in their work, which is more likely to succeed in bringing people "in" to AI.
How is AI revolutionising the luxury industry through personalised experiences, predictive analytics, and virtual try-on technologies? Can you share some examples from your work?
Statistics show the luxury retail industry is projected to be worth almost $370 billion. While the industry is prospering, those looking to stay ahead must harness the power of data to make the biggest impact. When used correctly, data enables luxury retailers to anticipate consumer needs, optimise operations, and enhance the shopping experience. With its help, retailers are reshaping the luxury experience and what it means to their customers.
Improved luxury marketing
Luxury brands are using data to enhance their marketing efforts by tracking campaign effectiveness across different channels. This helps them optimise ad spend and improve ROI. Additionally, data analytics provide deeper insights into customer preferences, enabling superior product development. By analysing reviews, feedback, and online discussions, brands can predict trends and create products customers want now and in the near future.
An elevated customer experience
Luxury retail depends on delivering premium experiences. Data allows brands to create highly personalised customer journeys, both online and in-store. As even high-street retailers turn to data-driven personalisation, luxury brands must go further. Today’s customers expect tailored experiences at every stage of their journey, particularly when purchasing high-value goods. By embracing data science, luxury brands are increasing brand loyalty and boosting revenue.
Gaining the competitive edge
Data can be applied across every aspect of a business. In the coming years, luxury brands must adopt more data-driven models to unlock their full potential.
Alongside the efficiency gains data delivers across sectors, luxury brands will also see benefits in their top line. The ability to scale personalisation, predict trends, and enhance customer service will elevate the luxury retail experience and drive sales.
Most luxury brands already hold vast amounts of client data but hesitate to use it for fear of alienating core customers—done right, this won’t be the case.
Luxury retail is moving online
Traditionally, luxury retail was an in-person experience where customers wanted to see and feel products before purchasing. However, this is changing. Online luxury sales are predicted that online luxury goods sales could triple to €70 billion by 2025. With this in mind, luxury brands must evolve with their customers, building strong digital presences backed by data to maximise profits and visibility.
But what are the risks luxury brands need to consider?
One of the biggest risks in luxury retail data solutions is data security breaches. Reputation and consumer trust are critical in the luxury industry. Many brands have global recognition and millions of customers, meaning they possess vast amounts of data. However, transforming raw data into actionable insights can be overwhelming. While many brands have the data, having skilled teams to manage and apply it effectively is where they may fall short.
If you want to find out more about how emerging technologies can be used in retail then read our blog on how AI and machine learning is being effectively used in the retail industry.
How do you see AI influencing traditional craft skills, and what are the main opportunities and challenges it presents in terms of design precision, production efficiency, and quality control?
The conversation tends to focus on AI as a threat rather than recognising that it can help preserve manual craftsmanship by enabling higher production rates. Instead of fearing skill loss due to AI replacement, we should consider how AI can augment traditional skills, ensuring they continue to be valued - as long as there is demand for them.
With the rise of AI-driven personalisation in luxury, how do you address concerns about data privacy and cybersecurity, especially considering the high expectations of high-net-worth (HNW) customers?
The same protections apply to personal data, even when using AI. Companies must ensure that third-party data service providers uphold the security standards their customers expect and have strong protections against breaches. Transparency around how customer data is used and safeguarded is essential.
