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This research investigates how artificial intelligence delivers value to consumers of luxury items, filling a gap in the literature regarding AI’s influence on luxury perceptions and behaviours. Three studies employ qualitative and quantitative methods. Study 1 uses qualitative responses from young adults to uncover AI’s dual provision of functional value and hedonic value. Study 2 surveys luxury consumers and finds that the desire for unique products increases perceived emotional and functional value of an AI-enabled luxury watch, which in turn reduces risk perceptions and enhances willingness to buy, with effects strengthened by inconspicuous luxury motivations. Study 3 collects qualitative insights from marketing managers. For luxury managers, the results of this research illustrate AI’s potential to enrich luxury consumption through blending digital innovation with traditional prestige.
Eastman et al. (Mon,) studied this question.