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AI & Personalization in Luxury Industry

“AI is redefining luxury — turning data into deeply personal experiences.”

About Me

​Barathy Esther Sagayanathan

  • 16+ years of experience in IT, digital marketing, automation & AI strategy

  • Specialist in AI-driven personalisation and customer journey optimisation

  • Guest lecturer, mentor & host for innovation, tech, and creative topics

  • Creative professional: blog/novel writer, graphic designer & visual artist

  • Passionate about bridging technology, storytelling & human emotion

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Today's Roadmap....

AI-driven Customer Experiences 

How AI tools like chatbots, virtual stylists, and voice assistants are redefining luxury customer service.

 

These technologies enhance responsiveness, creativity, and exclusivity — all while offering a seamless digital touchpoint for high-end clients.

Predictive Analytics & Recommendations

How AI uses past behavior and data to anticipate future needs.

 

Luxury brands leverage recommendation engines to deliver tailored product suggestions, curated content, and VIP-level marketing precision.

Personalisation in Luxury Retail & Hospitality

How AI is enabling hyper-personalised experiences both online and in-store, from bespoke hotel stays to intelligent fashion consultations.

 

This personalisation strengthens emotional connections, brand loyalty, and perceived luxury value.

+++ How AI is Redefining Personal Luxury Shopping (Farfetch, Chanel)

Luxury Spa Interior Design

"When was the last time a brand made you feel personally understood?"

Could be !.....

“A hotel remembering your favorite wine.”

“A stylist remembering your previous hair cut.”

Robot Soldier

Name 2 ways you interacted with AI this week.

Could be !.....

“ChatGPT, Snapchat”

Mindfulness

“These moments feel powerful because they connect data and emotion. Luxury is about being seen, understood, and valued.

 

AI is learning to do that at scale.”

Scary Robot

Defining AI in Luxury Context 

Hyper-Personalisation

Luxury brands use AI to collect and analyse data (like browsing habits, past purchases, and preferences) to offer tailored product suggestions, personalised emails, or even custom-crafted services.

 

Example: Farfetch uses AI to analyse customer behavior and offer tailored fashion suggestions.

Brand Storytelling

AI helps luxury brands tell more immersive stories. It can generate personalised content, simulate exclusive digital experiences, or guide users through brand heritage with an interactive touch.

 

Example: Gucci has ventured into the metaverse by creating Gucci Town on the Roblox platform.

Christian Dior has elevated the online shopping experience by introducing an Augmented Reality (AR) Virtual Try-On feature.

Chanel Virtual Retail Store

Exclusivity & Experience

Luxury is about feeling unique and valued. AI tools like chatbots, virtual stylists, or concierge apps make the user feel they’re receiving elite, on-demand attention — 24/7.

Example: Louis Vuitton has integrated AI into its customer service through the LV Virtual Advisor

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AI-Driven Customer Experiences 

AI is enhancing luxury customer experiences by offering intelligent, real-time support and styling through tools like chatbots and virtual assistants. These technologies provide personalised recommendations, instant responses, and a seamless digital extension of high-touch luxury service.

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Chatbots

AI-powered chatbots are revolutionizing customer service in the luxury industry by offering instant, personalised assistance. These intelligent systems can provide 24/7 support, helping customers with product inquiries, booking appointments, or even curating personalized shopping experiences—enhancing convenience while maintaining a premium feel.

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🧥 Burberry’s AI-powered chatbot offers customers instant access to product information, style advice, and store services through platforms like Facebook Messenger and their website. It enhances the luxury experience by blending digital convenience with a personalized, branded voice.

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💄 Dior uses chatbots for product launches and virtual consultations, especially in beauty. For example, during the Dior Prestige campaign, their chatbot provided skincare tips, product recommendations, and even guided customers through rituals, simulating a luxury in-store advisor.

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Virtual Stylists

AI-powered virtual stylists and digital concierge services offer luxury customers tailored fashion advice, product suggestions, and curated experiences—mimicking the personalized attention of in-store stylists. These tools elevate convenience while preserving the exclusivity and intimacy expected in luxury interactions.

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🛍️ Yoox’s AI stylist, "YooxMirror," allows users to create a digital avatar, receive outfit suggestions, and mix-and-match items curated by machine learning based on personal preferences. It brings a playful and interactive element to luxury shopping while offering tailored fashion advice.

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👜 Chanel offers a virtual try-on tool for its beauty line, allowing users to test lipsticks, eyeshadows, and more using augmented reality through their website or mobile app. This immersive feature recreates the in-store makeup experience digitally, helping customers choose the perfect shade with confidence.

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Virtual Fitting Rooms

Virtual fitting rooms use augmented reality and AI to let customers "try on" clothing or accessories digitally, offering a realistic preview of how items will look on them. This enhances the online luxury shopping experience by reducing returns and increasing confidence in fit and style.

Makeup Brushes
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🪞 YourFit creates a personalized avatar from your smartphone to simulate clothing fit with high accuracy. It helps luxury shoppers confidently select styles and sizes online, reducing returns while maintaining a tailored feel.

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👠 Farfetch integrates virtual try-on technology for accessories like sneakers and sunglasses using AR. It allows customers to visually assess how items look in real-time, bridging the gap between digital and in-store luxury experiences.

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 Predictive Analytics and Recommendation Engines

Predictive analytics uses AI to analyze customer behavior and forecast future preferences, enabling luxury brands to anticipate needs before they’re expressed. Recommendation engines then deliver personalized product suggestions in real-time, creating a seamless, data-driven shopping journey that feels curated and exclusive.

Predictive Analytics & Recommendation Engine

Amazon employs sophisticated AI algorithms to analyze user behavior, purchase history, and browsing patterns to provide personalized product recommendations. This dynamic system enhances the shopping experience by anticipating customer needs and suggesting relevant items.​ 

Visit Amazon and observe the "Recommended for You" section, which updates based on your browsing and purchase history.

Working on Bean Bag Chairs

Predictive Brainstorm

Scenario: Luxury Watch Brand
Task: “You manage a luxury watch brand. What data would you track to predict what each client wants next?”

Could be !...

By analyzing a customer's previous purchases, predictive analytics can identify potential future purchases based on trends and similar items they’ve bought in the past.

Mindfulness

“In luxury, data must be used elegantly — not creepily. The line between useful and intrusive is thin.”

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Amazon – Alexa Listening In

What Happened:
There were several instances where Amazon's Alexa voice assistant was found to be recording conversations that users did not intend to capture. In one case, Alexa accidentally recorded a conversation and sent it to a person on the contact list without the user’s knowledge.

Why It Was Creepy:
The idea that a device could be listening to private conversations and possibly sending them to unintended recipients caused anxiety and raised questions about the extent of surveillance and data collection by Amazon, leading customers to feel violated.

Takeaway:
In the luxury space, this type of situation can seriously damage trust—especially when high-net-worth individuals expect privacy and discretion.

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Personalisation in Luxury Retail & Hospitality

Luxury brands and hotels use AI to create hyper-personalized experiences—from curated fashion collections to tailored in-room services. These bespoke interactions deepen emotional connections and elevate the sense of exclusivity.

AI in Hospitality Personalisation

Ritz-Carlton uses its internal CRM system known as "Mystique", powered by AI, including facial recognition technology to track guest preferences—from pillow firmness to favorite wines—and remembers these details across properties. This creates a seamless, deeply personal experience every time a guest returns.

Luxury Spa Interior Design

Luxury isn't just high cost — it’s high consideration. Personal touches make experiences unforgettable.

Would you let an AI remember your travel preferences?

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How AI is Redefining Luxury Shopping

AI transforms luxury shopping from a transactional process into a personalized, immersive experience.
Through tools like virtual try-ons and AR mirrors, brands offer customers a sense of exclusivity and emotional connection—without stepping into a store.

Virtual Try-On with 3DLOOK / Zeekit

Use Case: Virtual fitting room technology using body scanning and AI to simulate fit and size.
How It Works: Customers upload their photo or body dimensions; AI simulates how clothes look and fit.
Experience Focus: Personalization + Convenience = Higher confidence in luxury e-commerce.

 

Farfetch itself doesn’t provide public virtual try-ons directly, but it partnered with Zeekit and other platforms. You can show a live example using a public virtual try-on platform like:

Mindfulness

“Imagine walking into a boutique, and your stylist already knows your size, preferences, and wishlist. That’s the magic of invisible tech.”

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The Future of AI in Luxury – Ethical & Experiential

  • AI + Human Hybrid Models
    Luxury service will blend AI efficiency with human emotional intelligence.

  • Emotion-Recognition AI
    Technology will adapt luxury experiences based on a client’s mood or tone.

  • Luxury in the Metaverse
    Brands will create immersive virtual flagships, events, and shopping avatars.

  • Ethical Personalisation
    Consumers will demand transparency and control over how their data is used.

  • Predictive Curation
    AI will pre-select fashion, travel, and experiences—before the customer even asks.

Robot Soldier

“In 2030, what will personalised luxury look like?”

  • AI stylists or concierges that follow you across digital and physical platforms

  • Fragrances tailored to your biometric mood or location

  • Virtual reality try-ons and holographic assistants

  • Data vaults where customers choose what they share

  • Digital-native luxury brands with zero physical presence

Conference

Is AI Enhancing or Replacing Human Luxury?

Group A: “AI enhances luxury — better service, faster, smarter.”

Group B: “True luxury is human and handcrafted — AI can’t replicate that.”

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Thank You & Final Thoughts

"AI isn’t replacing luxury—it’s making it more human."

Merci & Let’s Keep in Touch 

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Barathy Esther Sagayanathan

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