The fifth annual report from Bain & Company and the Comité Colbert reveals a widening gap between how customers use technology and how brands implement it. While consumer adoption is surging—reaching 64% in China and 54% in the US—luxury firms have primarily restricted their AI efforts to internal support and operational functions. These sectors saw adoption jump to 31% and 19% respectively, while customer-facing applications have lagged significantly, growing to just 21% over the last two years.

A major hurdle for the industry lies in visibility within generative AI engines. The report indicates that 70% of luxury-related prompts on LLMs do not specify a brand, and 90% of the information cited by these models originates from third-party sources rather than the brands themselves. This environment forces luxury houses to compete in a new digital arena where market share does not always guarantee visibility. Large houses with revenues exceeding €5 billion are currently failing to capture a fair share of AI-driven traffic, often losing ground to smaller, more specialized competitors.

Transforming the luxury experience requires moving beyond basic experimentation. Executives are eyeing conversational e-commerce and AI-powered clienteling, yet only 9% have successfully scaled these tools to achieve measurable impact. The industry currently faces a dual mandate: mastering the new discovery environments shaped by generative AI while maintaining the human-centric exclusivity that defines the luxury market.