Artificial Intelligence and Business Model Transformation in the Luxury Industry: Towards a Hybrid Model

Myriam Bousrih

Artificial intelligence (AI) is profoundly transforming business models in the luxury industry, a sector defined by exclusivity, craftsmanship, and immersive customer experiences. In a context of accelerating digitalization and evolving consumer expectations, AI is no longer confined to operational efficiency; it increasingly represents a strategic capability capable of redefining value creation, value proposition, and value capture mechanisms. This article develops a conceptual framework integrating AI into the luxury business model, drawing on business model theory and the dynamic capabilities perspective. The methodology is conceptual and comparative. It combines a systematic review of recent academic literature, a before-and-after analysis of the traditional luxury business model, and the development of an integrative framework highlighting key transformation mechanisms. The findings suggest that AI enables advanced and predictive personalization, strategic customer data utilization, resource optimization, and the hybridization of artisanal know-how with intelligent digital tools. The primary contribution lies in the conceptualization of a hybrid business model that combines human expertise and artificial intelligence. This model is both theoretically grounded and operationally relevant for luxury management and, more broadly, for symbol-intensive industries undergoing digital transformation and strategic renewal.