Can luxury brands balance AI use with heritage and sustainability goals?

September 23, 2025

Chris Wisson is research director at affluent and HNW panel company Altiant

What does luxury actually mean in 2025?

We probably all immediately think of the same touchpoints, such as heritage, innovation, craftsmanship and quality. Sustainability has risen in importance over the past decade and is now widely seen as an expectation rather than a “nice to have.”

Brands balance these luxury pillars uniquely in attempts to create a fully cohesive customer-facing strategy, but what happens when some of them are not particularly well-aligned or are in conflict with one another?

AI realities
The rapid growth of AI has introduced a bold new dynamic into the business world.

Brands have been scrambling to be seen as pioneers in this area, although this could be seen as somewhat reminiscent of their enthusiastic reception towards NFTs a few years ago.

While it is not a like-for-like comparison, the initial buzz subsided so that luxury-led NFT activity is now a rarity.

AI is unlikely to suffer the same fate, although some commentators and studies believe that its usage may be approaching an inflection point. Nevertheless, there are aspects that can feel a rather awkward fit for luxury brands.

Innovation like this will be divisive, much like pineapple on a pizza: some will warmly embrace it as a game changer, while others will puzzle about these unlikely bedfellows.

This is because, for all its merits, AI can be rather incongruous with the aforementioned luxury traits such as heritage and craft, as well as brands’ own sustainability targets.

The fact that generative tools such as ChatGPT are extremely thirsty, both for water and energy, is currently often overlooked.

As these tools develop, their demands will rise in kind, improving efficiencies on the one hand but also speeding up resource use as per Jevons’ Paradox.

The inconvenient truth is that our global energy demands, both green and otherwise, are still growing every year. While brands may not think that their own individual actions are significant, principles are vital in matters such as sustainability and, indeed, luxury as a whole.

Sustainability expectations are rising
According to Altiant’s quarterly tracker, GLAM, 57 percent of affluent/HNWIs now say that it is very important or essential for luxury brands to commit to environmental and sustainable policies. Those that do not give the appropriate attention to the issue, or have misleading or milquetoast commitments, risk being left behind or exposed as bad actors.

Since Q3 2024, GLAM has also tracked the perceptions of AI programs for their sustainable and environmentally friendly credentials. Half held a somewhat/very negative opinion on this front, a surprisingly high result given the relative infancy of this technology. Over each of the intervening three quarters, the result has nudged up by one percentage point each time to stand at 53 percent in Q2 2025, rising to 67 percent among affluent/HNW Europeans.

Using AI with a light touch
This is not to say that luxury brands should remain moored in the past and be unwilling to embrace the potential advantages of new technologies.

There are numerous instances in which AI can have clear benefits, such as the use of agents to detect fakes or for hotels to maximise occupancy rates and gain a greater understanding of their guests’ preferences.

Furthermore, the initial reception towards luxury brands using AI content is reasonably favourable.

In our recently published Millionaire’s Media Consumption reports, just over half of global HNWIs said that they are receptive towards the use of AI tools and software in advertising, exceeding 60 percent in four of the eight markets studied. Only 19 percent were opposed to its use.

Just over half of global HNWIs said that they are receptive towards the use of AI tools and software in advertising. Image courtesy of Altiant

Nevertheless, the proliferation of AI content, especially on social media sites such as Pinterest, has already birthed an unflattering moniker. The risks of being seen as unoriginal, low-effort or associated with ‘AI slop’ could cause lasting harm to luxury brands, especially for those that also extoll their green virtues.

Any use of this technology should therefore be subtly and judiciously woven into the overall experience, much like the stitching in a tailored suit, and complement other brand codes.

Luxury is human and timeless
Of course, one of AI’s main benefits is its ability to speed up tasks. Photography, marketing copy, or even articles like this one can now be easily outsourced to AI if desired.

But is this what we want, or expect, from luxury brands? We laud the time it takes to make a fine watch or barrel-aged whisky, so shouldn’t this diligence and care be the standard to aspire to across the board?

After all, luxury is ultimately about creating an emotional and human connection; it should tell a story. AI can undoubtedly help brands to get closer to their customers, but it is not a panacea, especially in industries such as hospitality.

Similarly, real sustainability shouldn’t necessarily be easy or a quick fix. Excessively delegating tasks to technology because it is convenient can clash against brands’ other principles, such as their human touch or any sustainability targets.

Wealthy individuals are becoming ever smarter and looking at brands’ activities as a whole. While there is currently a cautiously positive reception towards their use of new technologies, disjointed strategies are unlikely to pass muster.

The winners are likely to be the brands adopting more cohesive strategies, which do not try to be all things to all people, even if it may mean missing out on some of the trends du jour.

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Can luxury brands balance AI use with heritage and sustainability goals?

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