As AI catches on across luxury, brands play up their emotional value

This story was first published by Digiday sibling Glossy.

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.

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In Graphic Detail: The puny nature of regulatory fines compared to Big Tech’s financial prowess

Big Tech players are poised to outline their respective management’s visions of an AI-fueled future in what is likely to be another pivotal earnings season, outlining the full-year performance of the likes of Alphabet, Amazon, Apple, and Meta.

From here, the markets will scrutinize not just topline growth and AI spending, but how regulatory penalties — including billions in antitrust and privacy-related fines — stack up against each company’s financial prowess.

Investors and policymakers alike will be watching whether Big Tech’s cash generation and strategic pivots can absorb regulatory hectoring and use the outcomes to outline narratives around accountability and competitive positioning.

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