Luxury brands prioritise AI as consumer use surges

China leads AI adoption at 64%.

Artificial intelligence (AI) is becoming a top strategic priority for the global luxury industry as consumers increasingly use the technology to guide their purchases.

According to Bain & Company and Comité Colbert's Luxury and Technology report, about 22% of luxury houses and groups now rank AI amongst their top three corporate priorities for the next three years, up from 5% in 2024.

Meanwhile, 61% place AI amongst their top 10 priorities, compared with 50% two years ago.

Large luxury groups and companies generating more than $5.71b (€5b) in annual revenue have more established AI strategies than independent and smaller brands, the report said.

Consumer adoption, however, is moving faster than brands' AI deployment. China recorded the highest AI usage among luxury shoppers at 64%, followed by the United States at 54% and France at 27%.

Amongst top-spending luxury customers, 82% used an AI tool during their most recent purchase, compared with 28% of lower-spending consumers.

The report also found that 47% of in-store shoppers used AI before visiting a boutique, whilst 97% said they plan to use the technology again.

Consumers cited faster decision-making (68%), greater confidence in product information (55%), and easier discovery of brands and products (52%) as the main benefits.

Large-scale deployment in support functions increased from 6% in 2024 to 31% in 2026, whilst operational functions rose from 10% to 19%.

Meanwhile, Customer-facing functions grew more slowly, from 16% to 21%. Fewer than 20% of luxury executives reported significant business benefits from current AI initiatives.

The report also identified AI search visibility as an emerging competitive challenge. Around 70% of luxury-related prompts on generative AI platforms do not mention a specific brand, whilst 75% focus on discovery or comparison. About 90% of links cited by large language models come from third-party websites instead of official brand sites.

Researchers found that 70% of luxury houses generating more than $5.71b (€5b) in annual revenue receive less AI visibility than their market share would suggest, whilst some brands with revenues below $1.14b (€1b) outperform larger competitors.

The report identified conversational e-commerce, AI-powered personalisation, AI copilots for in-store advisors, and next-generation customer relationship management (CRM) as key technologies expected to reshape the luxury shopping experience.

Amongst these, AI assistants for client advisors are the most advanced, although only 9% of luxury houses have deployed them at scale.

“AI represents a dual promise for the luxury sector: operational efficiency today and growth through the reinvention of the customer experience tomorrow,” said Bénédicte Épinay, managing director of the Comité Colbert. “Capturing this dual promise requires vision and close collaboration between business leaders and technology teams.” 

Joëlle de Montgolfier, executive vice-president of Bain & Company's Global Retail & Luxury practice and co-author of the report, said luxury brands must move beyond AI experimentation and strengthen their presence on generative AI platforms as consumers increasingly rely on the technology when making purchasing decisions.

“AI is no longer a distant prospect—it is already shaping and influencing the customer purchasing journey,” she noted.