The new definition of luxury relies on computation, not craftsmanship.
Deloitte shows luxury executives ranking AI and materials innovation as their top priorities. Heritage and scarcity are no longer the engines of premium pricing.
Deloitte’s Global Powers of Luxury 2026 report reveals a structural shift in the high-end market. When asked to identify the primary forces driving the next five years, luxury executives ranked artificial intelligence first (31.7%), followed by materials innovation (22.6%). Traditional craftsmanship and physical retail were barely a footnote.
For a century, luxury was defined by heritage, natural scarcity, and human labour. A Hermès Birkin bag commanded a premium because an artisan spent days stitching rare leather. Now, at the exact moment legacy physical middlemen like Saks are collapsing, the brands themselves are betting their futures on algorithms. The focus is shifting from how a product was made in the past to how perfectly it anticipates what buyers want next.
When the world's most expensive brands rank AI above artisans, the core equation of a premium product has flipped. The ultimate luxury is no longer the human touch. It is frictionless precision.
If you are in any premium category, understand that 'luxury' is being redefined around intelligence and materials, not exclusivity. The next premium brand will have the best recommendation, not the best store.
Source: Deloitte