AI, Work Systems, and Global–Local Cultural Adaptation in Luxury Brands: A Work System Framework Approach

Luxury sector managers face a persistent strategic tension between preserving global brand consistency and adapting to local market cultural specificities. Recent empirical evidence indicates that a significant portion of the luxury sector’s growth has been driven primarily by price increases rather than by a proportional strengthening of perceived value. At the same time, many high-end consumers report a deteriorating shopping experience and a growing gap between the brand promise and the value they experience (BoF & McKinsey, 2024; Agrawal et al., 2025). This study adopts Alter’s (2008) Work System Framework as a theoretical lens to analyse how Artificial Intelligence (AI)-enabled organisational systems support the balance between global standardisation and local cultural adaptation in the luxury sector. Specifically, we develop three propositions that illustrate how AI can contribute to: (P1) preserving and transferring brand DNA through advanced knowledge repositories; (P2) supporting local decision-making through culturally informed platforms; and (P3) identifying cultural and reputational vulnerabilities early through predictive analysis systems. To make the theoretical contribution interpretable from a comparative and managerial perspective, we introduce the Cultural Adaptation Index (CAI). This conceptual indicator synthesises the degree of balance between global identity coherence and local cultural sensitivity in luxury companies. Through a qualitative analysis of emblematic cases (Cartier, Rolex, Loro Piana) and comparison with recent empirical evidence, the paper contributes to the literature on luxury management work system theory and digital transformation, offering operational insights for the strategic governance of luxury brands.