Privacy becomes the new luxury: how high-end brands are selling silence in the age of AI

Much of AI’s promise in retail — from hyper-personalized recommendations to anticipating customer desires in physical stores — is built on access to vast amounts of data. For companies like Meta and Google, data collection is a core part of an advertising-driven business model. This year alone, their investments in data storage infrastructure rose by 77%, reaching a record $725 billion. As personalization becomes the norm, competition for data is only intensifying.

However, consumers are increasingly showing fatigue toward constant data collection and are beginning to question whether personal information is worth the benefits offered in return. According to a Vogue Business survey of Vogue and GQ readers worldwide, only 1% consider AI recommendations “fully useful,” fewer than a quarter trust such algorithms, and just 3% use chatbots for style discovery. Many respondents say results feel too generic and fail to reflect their real preferences.

Against this backdrop, a new trend is emerging among affluent users: a deliberate pursuit of privacy. People are increasingly opting out of data collection and targeted advertising, turning instead to encrypted digital services. Wealthier and more educated consumers better understand how personalization systems work — and this is becoming a challenge for luxury brands that have long relied on deep client profiling.

“This is a very delicate line brands have to walk, because it’s big business, but more and more people are becoming aware of certain abuses,” says Caroline Aquino, Head of Consumer Tech at WGSN.

If privacy is becoming the new form of luxury, how can brands use it to their advantage?

Questions of autonomy and data control are now becoming a new axis of inequality. The use of personal data by fashion companies in AI systems has become one of the main concerns among respondents. Users are increasingly frustrated by the volume and precision of targeted ads, especially on social media — a trend amplified by artificial intelligence. This is fueling a growing “offline” movement, particularly among younger audiences, who are increasingly turning to platforms like Reddit and Pinterest, perceived as less commercialized.

At the same time, the market for paid, ad-free subscriptions is expanding. YouTube, Instagram, Snapchat, and Facebook already offer such options, while newer platforms like Vero and MeWe are built entirely around privacy-first models.

“Younger and wealthier users are making more conscious privacy decisions because they better understand how these technologies work,” Aquino says. “If you’re not paying with money, you’re paying with your data.”

Companies emphasize that personalization is about convenience: from more accurate recommendations to improved health services and reduced screen time. However, as Patricia Egger from Proton notes, the key question remains the same — whether you pay with money or with data.

Against this backdrop, privacy is becoming a branding tool in itself. For example, Even Realities smart glasses are positioned as a more “ethical” alternative to Meta products because they have no camera and collect significantly less data. They start at $599, compared to cheaper competitors that raise more privacy concerns.

According to CEO Will Wang, respect for user data has become a core element of the brand’s positioning, particularly among affluent consumers and public figures.

A new approach is emerging across fashion and tech: brands can gain an advantage by openly demonstrating respect for privacy and minimizing data collection. Even when AI is used, the focus is shifting toward transparency and user consent.

“Consumers increasingly see privacy as a signal of how serious a brand is and how much it respects its customers,” Aquino notes.

With regulation such as Europe’s GDPR and the gradual phase-out of cookies, brands are already adapting: building closed ecosystems, apps, and private client platforms. For example, Ralph Lauren has launched an app featuring an AI stylist, attempting to merge technology with a sense of exclusivity.

Experts believe that what began as a niche trend among high-end consumers could eventually become a market standard. And brands that integrate privacy into their strategy early may gain a long-term advantage in the new data economy.