This article examines consumers’ attitudes toward luxury goods made by humans versus Artifcial Intelligence (AI). Merging insights from the AI literature and the psychology of luxury consumption, I predict that consumers evaluate luxury goods made by an AI agent less favorably than the same ones made by a human agent. It is because AI-made luxury goods are perceived to be lower in heritage and higher in mass availability—which is referred to as reduced luxury perception in the current research. Building on this conceptualization, I further identify a situation in which might eliminate the attitude difference. Specifcally, I argue that because this effect is driven by differences in luxury perception, it should be attenuated for products in which considerations for heritage and availabil...[ Read more ]

This article examines consumers’ attitudes toward luxury goods made by humans versus Artifcial Intelligence (AI). Merging insights from the AI literature and the psychology of luxury consumption, I predict that consumers evaluate luxury goods made by an AI agent less favorably than the same ones made by a human agent. It is because AI-made luxury goods are perceived to be lower in heritage and higher in mass availability—which is referred to as reduced luxury perception in the current research. Building on this conceptualization, I further identify a situation in which might eliminate the attitude difference. Specifcally, I argue that because this effect is driven by differences in luxury perception, it should be attenuated for products in which considerations for heritage and availability are less important—e.g., products whose value stems from functional benefits rather than their connotations of luxury. Results from four studies provide support for the predictions, advancing basic knowledge on consumers’ reactions toward AI and luxury consumption and bringing applied implications for managers.