From digital Gucci fashion drops to AI stylists, luxury fashion has jumped on board the AI train, writes Paul Armstrong

The luxury market is standing at a crossroads driven by emerging generations who are demanding more participation, not possession, than ever before. Gen Z and Gen Alpha together seem to be poised to reshape what luxury means, tipping the balance from heritage-led scarcity to participation-led status. Only a few years ago, the tech world said digital clothing was the next big thing, right now we seem to be seeing AI moving beyond enabling personalisation to bigger and perhaps better models that focus on early access, creative agency and bespoke experiences on their own terms.

Big names remain comfortably afloat on a sea of money. LVMH logged €86.2bn in revenue in 2024 while Hermès posted a 17 per cent profit rise in Q1 of 2025. The group’s AI platform MaIA handles over 2m data requests per month and supports personalisation, supply chain forecasting and pricing strategy for its 75 brands. AI agents at Tiffany deliver tailored messaging and product suggestions for customers. Predictive tools now influence design, inventory and customer outreach across the Tiffany business. Even Google Cloud is partnering on AI innovation to preserve luxury values through tech-enabled creativity.

AI is powering ultra-personalised services

Gucci integrates AI in multiple ways, from real-time styling chatbots and recommendation engines to AI-driven digital fashion drops via Gucci Vault. Prada also likes chatbots, and launched AI-generated design workshops for clients in Asia. Dior tests smart mirrors in flagship stores, offering virtual try-on with instant analysis of body shape and preferred aesthetics. Balenciaga stages virtual fashion shows powered by generative design studios. Tommy Hilfiger partners with IBM and NY-based FIT........

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