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. 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. Two research propositions are formulated, together with potential indicators to assess AI’s impact on organizational performance, perceived value creation, and customer experience quality. The primary contribution lies in the conceptualization of a hybrid business model that combines human expertise and artificial intelligence.