There are few things more important than personalization when it comes to distinguishing luxury products, services, and experiences. Luxury brands know this, which is why they have always prioritized the tailoring of experiences that are as unique and personalized as possible. With AI now becoming increasingly sophisticated, billion-dollar business builder Seth Taube believes a new era of personalization is coming to the luxury industry.

“The intangible value that luxury brands add to their goods and services has always been what sets them apart from high-end brands,” says Taube, who has personally invested millions in this and other industries over the years. “AI has the potential to massively increase this value, allowing luxury brands to transcend their traditional approaches.”

AI has long been used by luxury brands to analyze vast amounts of data, providing important insights into customers that can later be used to improve their experience. However, the latest advancements in generative AI models represent a unique opportunity to level up these efforts by redefining the very concept of personalization.

“AI can help brands improve their customers’ experience by anticipating their expectations and providing employees with relevant information,” explains Taube. “The same cannot be said about improving the digital experience, as their use of AI has mostly been limited to marketing and anti-counterfeiting efforts.”

With generative AI, brands can now personalize their digital platforms as their customers interact with them. While approaches like cookies-based suggestions allowed a certain degree of personalization, this was mostly limited to actions like recommendations, offers, and notifications. This limitation no longer exists as generative AI could effectively modify any aspect of a platform at any given moment.

“Brands can now not only replicate the in-person experience but also enhance it” adds Taube. “Real restaurants can’t add a dish to its menu depending on your mood, nor can a clothing store transform its entire collection to suit your style. With generative AI, brands can bring this level of personalization to their digital space.”

Generative AI’s ability to analyze complex data, understand natural language, and generate new content on the go opens the doors to use cases like virtual personal shoppers. These AI-powered assistants can offer guidance, suggestions, and relevant information while also reacting to the customer’s queries. Need help to find the perfect outfit or style for a special occasion? Just ask the AI”

“While everyone is just scratching the surface of what generative AI can really do, luxury brands are uniquely positioned to help us understand the technology’s true potential,” says Taube. “By combining AI with other disruptive technologies like virtual reality, 3d printing, and cryptocurrency, the opportunities are endless.”

With brands just starting to explore the use of AI in the luxury industry, an unprecedented opportunity for new players to start their businesses and enter the market has also emerged. While this presents a unique challenge for established luxury brands, customers are set to benefit from increased choice and innovation.

“This is an exciting time for luxury brands and those of us who are passionate about them,” concludes Taube. “We are witnessing the dawn of a new era, where luxury is about to become something more intriguing than ever before as human expertise and AI efficiency converge.”