AI-Driven Design and Cultural Transformation: Impact Assessment

on the Core of Luxury Culture

Yefan Zhou

School of Design, Nanjing University of the Arts, No. 74 Beijing West Road, Nanjing, Jiangsu Province, China

Keywords: Artificial Intelligence, Luxury Goods, Cultural Heritage, Craftsmanship, Gucci, Hermès.

Abstract: The technological revolution brought about by digital transformation and artificial intelligence technology is

challenging the core values of luxury brands' craftsmanship, scarcity, and cultural heritage. This study

explores the tense relationship between AI driven design and traditional luxury craftsmanship through a

comparative analysis of Gucci and Hermes. Although artificial intelligence has improved production

efficiency and innovation, it has the potential to dilute the uniqueness, emotional resonance, and cultural

narrative of luxury brands. This study highlights the different strategies of Gucci and Hermès, with the former

using artificial intelligence for digital experiments and the latter prioritizing manual craftsmanship. The

research findings indicate that artificial intelligence should serve as a "narrative enhancer" rather than a

substitute for human creativity, emphasizing the need for a "culture first" framework to maintain brand

integrity. This study provides theoretical and practical insights for luxury brands to integrate technology

without compromising cultural depth, while also identifying limitations and future research directions.

1 INTRODUCTION

Under the dual impact of the digital wave and the

iteration of AI (Artificial Intelligence) technology,

the luxury goods industry is experiencing a profound

identity crisis. As a composite carrier of cultural

assets and material wealth, the core value of luxury

goods lies in the scarcity of handicrafts, the

inheritance of traditional crafts, and the narrative of

historical symbols.

However, with the penetration of technologies

such as generative AI and virtual reality, the

production process of traditional crafts is gradually

being rewritten: algorithms can quickly generate

patterns comparable to those designed by craftsmen

with ten years of experience after training, while Non

Fungible Token technology transfers scarcity from

the physical world to the digital space, allowing

consumers to "own" a virtual high-end dress through

the screen. The efficiency revolution brought about

by this technology is shaking the cultural foundation

on which the luxury goods industry relies for survival

- when machines can simulate or even surpass human

skills, the "luxury" attribute of luxury goods is facing

fundamental questioning of its material and spiritual

value sources, prompting people to re-examine

whether its cultural foundation is rooted in the

material carrier of precision manufacturing or the

spiritual premium that cannot be replicated by human

skills.

The current academic research on the intersection

of AI and luxury goods mostly focuses on the

application of technology, but rarely explores its

mechanism of deconstructing and reconstructing

cultural values in depth. Among the four strategic

goals of AI to improve operational efficiency,

customer relations, team expansion, and creative

functionality, luxury maisons have the highest

retention rate when using AI in the creative process.

Due to adoption rates below 5%, acceptance rates are

still limited. This is also the most controversial area,

the use of generative AI has sparked discussions

about its legitimacy. On the one hand, 72% of

participants oppose the introduction of these tools in

the creative process, fearing that the instrumental

rationality of algorithms may lead to symbol abuse

and semantic disintegration, which could harm the

essence of luxury goods; On the other hand, some

maisons have started exploring specific uses of AI,

such as inspiring inspiration or accelerating the

visualization of prototypes. Technology optimists

believe that AI can become a "digital archivist" for

cultural heritage, preserving endangered crafts

Zhou, Y.

AI-Driven Design and Cultural Transformation: Impact Assessment on the Core of Luxury Culture.

DOI: 10.5220/0013844900004719

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics (ICEML 2025), pages 359-365

ISBN: 978-989-758-775-7

359

through digitization (Haemmerlé et al., 2024). This

divergence exposes the core contradiction of

research, which is the game between technical

efficiency and cultural depth. If the intrinsic

mechanism between AI and brand value cannot be

clarified, the luxury goods industry may fall into the

trap of "technological upgrading but cultural

degradation".

The significance of this study lies not only in

expanding the research field of AI and cultural value,

but also in deepening the understanding of luxury

cultural value, and attempting to provide a

technological empowerment rather than cultural

compromise transformation path for global luxury

brands. In the future where digital civilization and

handicraft civilization coexist, luxury goods may

redefine their essence: they are no longer scarce

replicated by machines, but a cultural sovereignty

declaration upheld by humanity in the tide of

technology.

This article compares and studies two

representative brands, Gucci and Hermes, with a

focus on analyzing the essential issues at three levels:

firstly, revealing the reconstruction path of luxury

cultural symbol system through the intervention of AI

technology in the design process; Secondly, explore

the irreplaceable nature of the "human warmth"

characteristic carried by traditional handicrafts in the

efficiency oriented technological logic; Finally,

analyze the necessary path for luxury brands to

construct a "technology culture" dynamic balance

model, in order to avoid the risk of algorithmic

colonization eroding the brand's cultural genes.

2 TRADITIONAL

CRAFTSMANSHIP IN LUXURY

GOODS VERSUS AI-DRIVEN

DESIGN

2.1 Cultural Heritage Transmission

The traditional craftsmanship in luxury design is a

living archive of cultural memory and humanistic

values. When craftsmanship surpasses technical

proficiency, the regional identity and historical

narrative carried by the brand will spontaneously

integrate into tangible forms. Taking Hermès silk

scarves as an example, a century after the brand's

establishment, this category was first launched in

1937. Hermès' first square scarf, like many other

product categories, grew out of craft-oriented roots.

During the production process, Hermès never sets

time limits or production quotas on its artisans or

designers and is willing to wait years of time for

freelance artists to complete their designs. These

processes transform raw materials into cultural

rewrites, making every work a moving museum. In

addition, production in Lyon takes approximately 18

months, with an average of 750 hours spent carving

individual screen prints. At the same time, Hermès

scarves are also suitable for establishing noble

associations between art and design. As the company

itself points out, a square silk scarf is its own blank

canvas and is therefore an especially harmonious

assignment for any artist (Luckel, 2021). Under

continuous inheritance and innovation, the scarves

have also naturally become a cultural carrier of

Hermès.

AI design operates through algorithmic

deconstruction and recombination, excelling at

pattern recognition but lacking contextual

consciousness. AI art has gradually become the

ultimate form of "cultural industry products" due to

its special generation mechanism, and this art form

has surpassed the traditional art category and evolved

into a pure technological product. In this mode, the

temporality of artistic works is dissolved by the

principle of "identity", leaving only traces of

technical creation. With the strengthening of

quantifiable features in AI art, works are showing a

trend towards high homogenization, which can lead

to art works no longer inheriting history and not

involving the future (Yu, 2024). This homogenization

will also affect the luxury goods industry. AI can

efficiently extract, imitate and even deconstruct

traditional symbols of luxury brands through long-

term data training. However, while AI produces

efficiently, the cultural memory and humanistic spirit

behind the skills are difficult to convey.

This decoupling is more evident in the Asian

market. Most AI technologies are developed by

occidental companies, and training data and model

design may be more based on Western culture and

values, leading to the neglect of Asian specific

cultures, which invisibly accelerates the dislocation

and dissolution of cultural inheritance under the wave

of technology. A study on the application of

generative AI in Guizhou batik printing pattern

design has shown that with the introduction of digital

design tools, the efficiency of pattern creation has

significantly improved. However, this innovation

sometimes leads to a decrease in cultural uniqueness

and recognition, and in some cases, overemphasizing

innovation can result in a misalignment of symbolic

meanings in the model (Peng & Yu, 2025).

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Therefore, if the luxury goods industry wants to

adhere to the cultural core in the wave of technology,

it needs to re-examine the dialectical relationship

between traditional craftsmanship and artificial

intelligence. In the use of AI tools, cultural

empowerment and localization calibration are

necessary to avoid them becoming tools for

deconstructing historical values. The future design

paradigm should pursue a symbiotic relationship

between technological efficiency and cultural depth,

rather than one-way substitution.

2.2 Uniqueness and Scarcity

Luxury’s traditional value proposition hinges on

controlled imperfection and material scarcity. This

theory can be traced back to the discourse of German

scholar Wolfgang Rätzler in his book "Luxury creates

wealth" but now facing algorithmic subversion. The

Belgian luxury leather goods brand Delvaux has

always maintained the ultimate pursuit of

craftsmanship and artistic quality. In terms of

craftsmanship, each leather handbag needs to undergo

material selection, multiple processing techniques,

and collaborative carving by multiple craftsmen

before it can be launched. And this time-consuming

and laborious production tradition was officially

recognized as early as the 19th century, and in 1883,

it was officially awarded the title of "Royal Supplier"

(Li, 2021). Not only that, the brand's exquisite

craftsmanship and emotional craftsmanship, as well

as the products polished over time, have become a

symbol of identity and elegant taste, highly respected

by consumers. In the brand's classic series of Brillant

handbags, the number of stitches in each row is

strictly controlled at 13 and the upper and lower lines

are symmetrical without deviation. However, subtle

changes in stitch density can be observed at a

magnification of 10 times, which is also the

"authenticity" that distinguishes handicrafts from

machine production. Similarly, the scarcity and

natural flaws of Burmese jade determine its unique

jewelry configuration. The uniqueness of materials

directly affects processing strategies, and craftsmen

need to consider the final form of production while

spending a lot of time researching the structure of raw

stones to maximize the use of rare textures. The

scarcity of materials is transformed into exclusivity,

and the phenomenon of defects being regarded as

status targets is deeply reflected in a wristwatch sold

at the Phillips auction. This watch comes from Patek

Philippe's legendary Ref.1518 model series, but its

uniqueness lies in its use of stainless steel material,

which is completely different from the common

precious metal versions in the series. In the tradition

of watchmaking, stainless steel is often seen as a

"populist" choice, but it is precisely this seemingly

"atypical" material choice that has achieved its

extraordinary value - according to brand archives,

there are only four stainless steel versions of this

model left in the world, and its scarcity directly

pushed it to a sky high price of 11 million Swiss

francs at the 2016 Geneva auction, not only breaking

the auction record for this model, but also topping the

list of the world's most expensive wristwatches at that

time (Time Square, 2016).

AI disrupts this paradigm through computational

democratization. Wensli, a famous silk culture

enterprise in China, has collected aesthetic elements

such as color and structure from over 600 top artists'

paintings over the past 1500 years, and summarized

350000 basic patterns. At the same time, Wensli uses

these patterns as the underlying logic of the plan.

With Wensli’s AI design capabilities, if it designs

100,000 silk scarves for one person, it can instantly

come up with 10 ^ 27 solutions. However, eight years

ago at Wensli, even fifty or sixty designers could only

design around 100 scarves per day for extreme work

(Teng, 2022). While enabling mass customization,

this algorithmic abundance paradoxically devalues

exclusivity. Farfetch, a luxury e-commerce platform,

has tried to cooperate with Yoyi, an Internet

advertising company, to make accurate prediction and

product recommendation around users' full link

marketing through federal learning and dynamic

algorithm recommendation through its data

capabilities (Yoyi,2021). However, although this

technology significantly improves conversion rates,

excessive reliance on algorithms may lead to a

convergence of personalized experiences for

consumers. When a large number of users are

recommended similar high-frequency hot selling

items, the originally scarce "uniqueness" will be

subtly diluted, and the function of luxury goods as

identity symbols will also be weakened.

The ability of artificial intelligence for mass

customization poses fundamental challenges to the

value system maintained by traditional scarcity. This

technology driven paradigm shift is driving the

reconstruction of the definition standards for

"scarcity" and "authenticity" in the luxury goods

industry.

2.3 Emotional and Narrative Value

Human craftsmanship thrives on biographical

storytelling—a narrative economy where temporal

investment becomes tangible value. Chanel has been

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361

acquiring atelier since the 1980s, while also

attempting to integrate disappearing traditional

craftsmanship into modern fashion design. In 2002,

Chanel officially launched the Métiers d'art

collection, whose core is handcraft craftsmanship.

Not only that, Chanel also tell the century long history

of these workshops through documentaries,

workshop exhibitions, and other forms, transforming

the narrative of "craftsmanship revival" into

consumers' recognition of the depth of brand culture.

These stories achieve quantifiable market impact

(Chanel, 2024). The Greubel Forsey "Hand Made 1"

series of tourbillon watches takes 6000 hours to

produce, with only 2-3 pieces produced annually.

95% of its components, including the case, dial,

hands, and movement, are handmade. The exquisite

craftsmanship makes the price of this series of

watches significantly different from those of the same

brand that use partial mechanical assistance (Greubel

Forsey, 2025).

However, the goods designed by AI are facing an

affective valley. When AI-generated art dissolves

emotional elements, its essential sensory

characteristics as art cease to exist. Such purely

computation-based technical rationality struggles to

resonate with human aesthetic sensory experiences

(Yu, 2024). This has also been validated in practical

applications in the fashion industry. AI will definitely

not replace Fashion Maisons' studios or image

departments, even after the public release of several

generative AI tools such as ChatGPT and Midjourney

in 2023, well-known brands such as GANNI,

Valentino, Balenciaga, etc. actively accept and use

generative AI tools (Vitry et al., 2024).

The technological characteristics possessed by AI

itself determine that it is more suitable as an auxiliary

tool to participate in specific aspects of the creative

process, and cannot replace the core values of human

designers in situational cognition and conceptual

innovation. Otherwise, in the wave of technological

iteration, luxury brands will gradually weaken their

emotional warmth and narrative power, ultimately

becoming colonies of technology.

3 COMPARATIVE ANALYSIS OF

GUCCI AND HERMÈS

3.1 The Degree of AI Integration in

Design Processes

Gucci has emerged as a vanguard of algorithmic

experimentation. Based on its commitment to the

digital art world, the brand has decided to experiment

with generative AI. In January 2022, Gucci launched

the Art Space platform, and in June of the same year,

Gucci invited 21 artists to imagine Gucci's future

through NFTs (Schulz, 2023). In June 2023, Gucci

collaborated with Christie's auction house to launch a

series of NFT artworks, marking Gucci's first

introduction of a generative artificial intelligence

project (McDowell, 2023). Five months later, the two

parties collaborated again to use generative AI to

create artworks. During Spring/Sumer24 Fashion

Week, Gucci collaborated with AI creative blogger

Joann to create promotional photos for the collection.

It is worth noting that although Gucci actively

explores the field of digital innovation, the use of

generative AI tends to be more focused on art rather

than clothing. This also shows that the brand's anchor

points are currently more focused on experimentation

and testing, rather than fully embracing AI. The

cooperation with Christie's is not only beneficial for

establishing Gucci's creative identity, but also a

reflection of AI design's understanding and practical

presentation of the core concepts of luxury brands.

The latest report mentions that Kering Group, as the

parent company of Gucci, has launched a personal

shopping assistant called "Madeline", which is

equipped with ChatGPT and integrated into its

innovative digital shopping platform KNXT, aiming

to help users access the group's numerous brands

more conveniently(Tan,2025).

Hermès has always followed two principles

through generations of inheritance: exquisite

craftsmanship and understanding customers'

lifestyles, which also determines Hermès' strategy of

still adhering to craftsmanship as the core in the wave

of technology (Hermès, 2023). At the same time, due

to the fact that most of the core executives of the

brand are older white males with financial

backgrounds, management personnel with technical

and marketing backgrounds, and low fault tolerance

mechanisms with short terms of office, the

management tends to avoid risks and show relatively

negative performance in innovation (Xu, 2022).

Therefore, brands are quite conservative in their

experimentation with digitalization, with most of

them only scratching the surface in marketing and

promotion. For example, online games such as the

mobile game "Hermès H-pitchhh" launched in 2018

and "Jumping Bag" four years later. Furthermore,

there is no conclusive public evidence to prove that

Hermès is attempting to incorporate digital

technologies such as artificial intelligence design into

product production.

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3.2 Logic of Traditional Symbol

Transformation

Gucci's use of AI design is not simply a replacement

for traditional symbols, but rather a new possibility

generated through algorithms, endowing symbols

with dynamic modern narratives while enhancing

their historical coherence. The Bamboo 1947 series

handbag, as the core symbol of the brand, has

remained unchanged since its birth, despite the

innovation of materials and shapes by generations of

designers. In the new exhibition "Gucci Bamboo:

Decoding an Icon" presented in Shanghai, AI

technology is used to reinterpret this classic element.

Exhibition Hall One "The Whispering Grove" uses

video images created by artist Christian Kondi ć with

the help of artificial intelligence to present the vibrant

vitality of the core material "bamboo". The

"Metamorphosis" exhibition hall on the 6th

showcases the future form of bamboo handbags

through an AI created imaging installation by

interdisciplinary artist Francesco D'Abraccio, using

the original curvature of the handle as a constant

cultural anchor and a flowing sequence (Milan,

2025).

As a representative of traditional luxury brands,

Hermès has always maintained a conservative

attitude towards traditional symbols. This

conservatism was fully demonstrated in the 2022

MetaBirkins NFT trademark infringement case. As

the first trademark protection case in the NFT field,

the plaintiff in this case is Hermes, who chose to

protect their rights through legal litigation rather than

technical means. The core product of the brand,

Birkin bag, with its excellent craftsmanship and

scarcity, has not only become the "ultimate goal" of

the handbag category after time accumulation, but

also sublimated into an important component of the

brand's classic symbol system. Artist Mason

Rothschild directly reconstructed the appearance of

100 "MetaBirkins" NFT works based on Birkin's

design using colored faux fur, which was released at

the Art Basel Miami exhibition in December 2021. In

addition, the names of the series, domain names, and

social media accounts all directly use "Birkin", which

not only violates Hermès' trademark for "Birkin", but

also subtly dilutes the commercial value of the

Hermès brand (Liang, 2023).

3.3 Consumer Value Perception

Gucci's multiple innovations in recent years are based

on its anchoring of Generation Z as the main

consumer group. The brand has also strengthened its

virtual fitting and personalized recommendation

system through AI technology, directly responding to

Generation Z's preference for digital experiences. At

the same time, the AI system will analyze customers'

physical data and purchase history, generate virtual

fitting effects, and provide dressing suggestions.

Gucci's application of AI technology not only

improves shopping efficiency, but also enhances user

stickiness through personalized services. In addition,

Gucci has also partnered with Genies Inc., a virtual

image service provider, and launched 200 virtual

styles and themed actions. Users can customize

virtual avatars and purchase exclusive digital fashion

items, and Genies' AI technology can recognize over

180 emotional dimensions and action scenes,

simulate real interactions, and align with Generation

Z's emphasis on virtual identity and social expression.

Hermès' market strategy focuses on exclusivity,

craftsmanship, and controlling development, all in

order to maintain the brand's image and quality

(Cuofano, 2024). Since its establishment, Hermès has

been committed to the inheritance of craftsmanship

and customer service, which has rooted the brand's

development in craftsmanship while gaining a loyal

customer base. Therefore, in the operation of the

brand covering multiple aspects such as customer

segmentation, demand forecasting, and public

opinion management, there has never been the

addition of new technologies.

4 THE IMPACT OF AI DESIGN

ON THE CORE OF LUXURY

GOODS

AI will not necessarily change its cultural core, the

key lies in whether brands place technology in the

position of "service providers" rather than "leaders".

Only by adhering to the cultural subjectivity of the

brand can AI become a driving force for the evolution

of luxury goods, rather than a disruptor. To maintain

its original intention under contemporary technology,

the brand itself needs to consider the positioning and

practical use of AI technology in design.

4.1 Toolification: Assisting Production

The positioning of AI should be anchored in auxiliary

tools, rather than replacing creators of human

intelligence. In 2024, luxury technology brand

BUTTONS launched its AI intelligent agent HALI

and headphone product line. The product design of

BUTTONS CLIP earphones is led by humans, while

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363

the metal polishing and leather wrapping details of

the earphone shell still use traditional luxury

manufacturing processes, while AI assistance is used

to optimize acoustic parameters and noise reduction

functions. This also confirms that although AI design

is suitable for improving product performance, the

core of brand luxury design and craftsmanship still

relies on human creativity.

4.2 Cultural Preservation: As the

Guardian of Heritage

AI can be used to protect and manage brand cultural

and heritage. In 2021, the eponymous founder of

Italian luxury brand Brunello Cucinelli led the

development and launch of an AI website called

Brunello Cucinelli.AI. Unlike traditional website

information display modes, this website uses AI to

generate personalized copy to answer user input

questions into the search box. This not only optimizes

the dissemination and understanding of brand

concepts, but also preserves the philosophy and

cultural heritage behind the brand.

4.3 Shallow Intervention: Continuation

of Core Technology

At its global debut in Shanghai, Italian luxury brand

Loro Piana showcased its iconic camel hair and

cashmere craftsmanship through an innovative

immersive digital exhibition. At the same time, the

brand has achieved a high degree of restoration of raw

material collection scenes through virtual reality

technology, building a digital process traceability

experience. However, despite the use of cutting-edge

digital technology for display, core processes such as

textile and dyeing still strictly follow tradition and are

completed by craftsmen with exquisite skills. Loro

Piana clearly emphasizes the uniqueness and

irreplicability of its "Know How" technology system,

believing that craftsmen's tactile perception

experience of raw materials and the hand woven skills

passed down from generation to generation are the

core elements to ensure excellent product quality.

This also validates the effectiveness of the

"technology shallow intervention process display,

core process adhering to manual inheritance" model.

At the same time, this model not only achieves the

organic integration of traditional craftsmanship and

modern technology, promoting the modernization of

craftsmanship, but also continues the unique value of

brand cultural heritage through strict protection of

manual skills, providing a reference for the

inheritance and development of traditional luxury

brands in the digital age.

4.4 Domain Expansion: Practical

Application of Technology

AI design is not limited to graphic and core product

design in order to shine. A collaboration between

Tiffany&Co and Snapchat has developed an AR filter

that allows users to try on Tiffany Lock bracelets

online while also experiencing their unique texture.

This greatly enhances the customer experience and

rapidly shortens the purchasing chain, assisting

Tiffany in achieving exponential sales conversion.

German fashion brand Hugo Boss has partnered with

Reactive Reality to launch a virtual reality fitting

room, allowing online shoppers to try on clothes

using personalized virtual avatars. Users can create

personalized body models to try on thousands of

products and more accurately understand the fit of

clothing. The application of AI design is multi-

channel and multi-faceted, and brands can achieve a

win-win situation by choosing the appropriate way to

invest based on their own attributes.

5 CONCLUSION

This study focuses on the dual impact of AI on luxury

brands, revealing that while AI-driven design

significantly enhances production efficiency, it

simultaneously undermines the scarcity and

exclusivity central to luxury value. The key issues

identified in the research are the dilution risk of

cultural uniqueness caused by the homogenization of

AI algorithms, and the inability of technical

rationality to replicate the emotional and narrative

value of manual craftsmanship. For brands, excessive

reliance on AI may weaken their brand image. These

problems stem from the tension between

technological efficiency and cultural depth,

exacerbated by the Western-centric development of

AI tools, which often neglect regional cultural

contexts.

Based on this, the study proposes a "culture first"

framework, advocating AI as a "narrative enhancer"

rather than a substitute for human creativity.

Meanwhile, this article suggests that luxury brands

establish a "non algorithmic cultural red line" before

using AI design to transparently disclose the role of

technology. The conclusion of the study challenges

the universality of "technological determinism" and

provides a balanced theoretical path for luxury brands

to integrate AI without compromising cultural

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364

integrity. At the same time, it guides brands in digital

transformation while protecting handmade heritage at

the practical level.

However, selecting only Gucci and Hermès

brands for comparative analysis may not capture the

dynamics of the entire industry. In addition, the

emphasis on the design process in the research scope

may overlook the broader impact on the supply chain.

Future research can explore the role of artificial

intelligence in sustainable processes or cross-cultural

adaptation.

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