{"id":28540,"date":"2026-04-22T06:22:26","date_gmt":"2026-04-22T06:22:26","guid":{"rendered":"https:\/\/hunthow.com\/?p=28540"},"modified":"2026-04-22T06:22:26","modified_gmt":"2026-04-22T06:22:26","slug":"how-the-ai-race-will-impact-the-global-luxury-market","status":"publish","type":"post","link":"https:\/\/hunthow.com\/?p=28540","title":{"rendered":"How the AI Race Will Impact the Global Luxury Market"},"content":{"rendered":"


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This article is part of the Future of AI<\/a>, a collection of articles that investigates how artificial intelligence will impact the fashion and beauty industries in the years to come.<\/em><\/p>\n

In Hangzhou, a shopper can ask an AI agent to assemble an entire wardrobe, try it on their virtual avatar, and purchase it all within the same super-app. Meanwhile, in Silicon Valley, startups are racing to build even more powerful large language models (LLMs)<\/a> to compete with China. And in Brussels, lawmakers are debating how that same technology should be governed.<\/p>\n

The AI race is a high-stakes geopolitical battle between governments competing to create the most powerful technology in order to increase their economic competitiveness and safeguard national security. But different countries have fundamentally different ideas about how AI should shape business and society. The gap between those ideas is where luxury brands now have to operate.<\/p>\n

\u201cWe\u2019re seeing multi-locality emerging, where because of deep AI and data use, there become more local specificities,\u201d says Holger Harreis, senior partner at McKinsey. \u201cThese specificities differ by income segment and age around the globe, but they\u2019re always present.\u201d<\/p>\n

Luxury executives are preparing to tackle this growing fragmentation. Rather than scaling a single AI strategy globally, experts say that brands will need to localize how they use AI and data market by market, applying AI selectively to enhance customer experience where it matters, while protecting the elements of luxury that must remain distinctly human. The result is not one AI-driven future for the luxury market, but several.<\/p>\n

Different systems, different rules<\/strong><\/h2>\n

Numerous governments \u2014 the US, China, France, the UK, Japan, the UAE, Saudi Arabia, Singapore, and more \u2014 have formally identified AI as central to their national, economic, and security strategies.<\/p>\n

The most prominent players in the AI race are the US and China, bolstered by access to capital and driven by the growing geopolitical tensions between them. The US\u2019s AI development is fast and startup-led. The key players \u2014 Nvidia, OpenAI, Google, Meta, Anthropic, Microsoft, and Amazon \u2014 are building models or tools, each with distinct strengths. \u201cMaybe one is better at visualization, one is better at processing and coding, and one is better conversationally,\u201d says Raakhi Agrawal, managing director and partner at Boston Consulting Group. \u201cIt\u2019s more varied and containerized in the US.\u201d This means brands must compete across multiple AI entry points simultaneously \u2014 from search to agents to platforms \u2014 potentially with no single dominant channel.<\/p>\n

In China, companies including Deepseek, Moonshot, and Zhipu are building capable LLMs, but the AI landscape is largely being shaped by tech giants such as Alibaba and Tencent, who have access to vast amounts of consumer data from an ecosystem of integrated super-app platforms. \u201cOne platform can end up with a lot of customer data and know a lot about their preferences. But the more data and context that AI agents have, the better the recommendations are going to be and the more useful they are to a consumer,\u201d Agrawal says.<\/p>\n

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\"Image<\/picture><\/span><\/div>\n
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A user interface message on the DeepSeek artificial intelligence app.<\/p>\n

<\/span>Photo: Getty Images<\/span><\/div>\n<\/figure>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This article is part of the Future of AI, a collection of articles that investigates how artificial intelligence will impact the fashion and beauty industries in the years to come. In Hangzhou, a shopper can ask an AI agent to…<\/p>\n","protected":false},"author":1,"featured_media":28541,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[125],"tags":[],"class_list":["post-28540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fashion"],"_links":{"self":[{"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/posts\/28540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28540"}],"version-history":[{"count":0,"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/posts\/28540\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/media\/28541"}],"wp:attachment":[{"href":"https:\/\/hunthow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}