Chanel CEO Leena Nair recently shared a revealing anecdote about an awkward encounter with ChatGPT during a visit to Microsoft headquarters in Seattle this past May. Speaking at Stanford Graduate School of Business’s “View From The Top” speaker series, Nair described how the AI chatbot failed to accurately represent the luxury fashion house’s predominantly female leadership and customer base.
During the visit, which was part of Chanel’s broader effort to understand AI’s potential impact on the luxury industry, Nair and her leadership team experimented with ChatGPT on Microsoft’s premises. When they prompted the AI to “show us a picture of a senior leadership team from Chanel visiting Microsoft,” the results were disappointingly stereotypical: the image depicted “all men in suits” — a stark contrast to Chanel’s reality.
Nair, who previously served as the first female chief HR officer at Unilever, highlighted the irony of this AI failure. “This is Chanel. Yes, 76% of my organization is women, 96% of my clients are women, female CEO,” she emphasized. The chatbot’s output showed a “100% male team, not even in fashionable clothes,” prompting Nair to quip, “This is what you’ve got to offer, ChatGPT? Come on.”
In response to the incident, an OpenAI spokesperson acknowledged that bias remains “a significant issue across the industry.” The company stated it has dedicated safety teams working to research and reduce bias in their models through multiple approaches, including modifying training data, enhancing content filtering systems, and improving oversight mechanisms.
Despite this setback, Nair emphasized that Chanel is actively preparing for an AI-integrated future. The company is implementing infrastructure systems, data governance classifications, and conducting numerous experiments. Current initiatives include productivity tools and chatbots on chanel.com. However, Nair stressed the importance of maintaining a “relentless focus on human creators” and preserving the creative freedom of artists and workers.
Nair also revealed she regularly engages with tech CEOs, urging them to integrate “a humanistic way of thinking in AI.” She emphasized that AI should support human creators rather than replace them, a principle that remains core to Chanel’s values as the luxury brand navigates the rapidly evolving AI landscape.
Key Quotes
AI is everywhere. And it’s going to be transformative in our world, so luxury has to engage with it, Chanel has to engage with it.
Chanel CEO Leena Nair explained the rationale behind her leadership team’s May visit to tech companies in Seattle, emphasizing the imperative for luxury brands to understand and adapt to AI technology.
This is Chanel. Yes, 76% of my organization is women, 96% of my clients are women, female CEO. This is what you’ve got to offer, ChatGPT? Come on.
Nair expressed her disappointment after ChatGPT generated an all-male image when asked to depict Chanel’s leadership team, highlighting the stark disconnect between AI’s output and the company’s actual demographics.
I constantly talk to my friends in tech, all the CEOs that you know, saying, come on, guys, you’ve gotta make sure that you’re integrating a humanistic way of thinking in AI.
The Chanel CEO described her ongoing advocacy efforts with technology leaders, pushing for more human-centered approaches to AI development and implementation.
So ensuring that AI supports human creators and creation, rather than take away what they bring so skillfully and masterfully, is very much core to who we are at Chanel.
Nair articulated Chanel’s guiding principle for AI adoption, emphasizing that technology should enhance rather than replace human creativity and craftsmanship in the luxury industry.
Our Take
This incident serves as a powerful reminder that AI systems are only as unbiased as the data they’re trained on. ChatGPT’s failure to recognize Chanel’s female-dominated reality reveals how historical data—reflecting past gender imbalances in corporate leadership—continues to shape AI outputs today. What makes this particularly significant is that it occurred at Microsoft headquarters, suggesting even controlled demonstrations can expose fundamental flaws. Nair’s response is noteworthy: rather than rejecting AI entirely, she’s advocating for better implementation while maintaining Chanel’s creative integrity. This balanced approach—embracing technological advancement while demanding accountability and human-centricity—represents the mature perspective needed as AI becomes ubiquitous across industries. The fashion and luxury sectors, with their emphasis on creativity and human expression, may actually serve as important testing grounds for ensuring AI enhances rather than diminishes human contribution.
Why This Matters
This incident highlights a critical ongoing challenge in AI development: algorithmic bias and representation. When one of the world’s most prominent luxury brands—led by a female CEO with an overwhelmingly female workforce and customer base—is misrepresented by leading AI technology, it underscores how deeply embedded gender stereotypes remain in AI training data.
The story matters because it demonstrates that even the most advanced AI systems can perpetuate outdated assumptions about corporate leadership and industry demographics. This has significant implications for businesses adopting AI tools, as biased outputs can reinforce stereotypes, damage brand identity, and alienate customers.
Moreover, Nair’s approach—actively engaging with AI while maintaining focus on human creativity—offers a blueprint for how traditional industries can navigate digital transformation. Her emphasis on ensuring AI supports rather than replaces human creators reflects broader concerns about AI’s impact on creative industries and employment. As luxury brands and other sectors increasingly integrate AI, addressing bias and maintaining human-centric values will be crucial for successful, ethical implementation.
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For those interested in learning more about artificial intelligence, machine learning, and effective AI communication, here are some excellent resources:
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Source: https://www.businessinsider.com/chanel-ceo-describes-chatgpt-fail-visiting-microsoft-2024-10