The world of fine jewelry, traditionally steeped in centuries of heritage, craftsmanship, and emotion, is standing on the precipice of a radical transformation. Artificial intelligence (AI) is no longer a futuristic concept but a present-day reality that is poised to change everything—from how diamonds are graded to how independent retailers compete with global giants. This shift was the focal point of a high-stakes panel on AI held during the recent CIBJO (The World Jewellery Confederation) Congress in Paris, where industry technology experts agreed: the metamorphosis is here.
While the jewelry sector has often been slow to adopt new technologies, clinging to the romance of the loupe and the workbench, the consensus in Paris was clear. AI is not just a trend; it is a fundamental restructuring of the industry’s value chain.
The Profit Margin Paradox: Why AI Wins Where E-Commerce Struggled
For decades, the jewelry industry has had a complicated relationship with digital advancement. Jacques Voorhees, founder of the Polygon diamond trading network and current head of IcecapAI, drew a parallel between the current AI revolution and the dotcom boom of the late 1990s. However, he noted a critical distinction in their economic impact.
While the rise of e-commerce increased reach, it often decimated profit margins for traditional jewelers by forcing them into price wars with online giants. AI, Voorhees argued, promises to do the reverse.
“It promises to increase profit margins by lowering costs,” Voorhees explained to the panel. This cost reduction comes not from cutting corners on quality, but from unprecedented efficiency in sales and operations. For the first time, technology allows for what Voorhees described as “salespeople on websites.” AI-driven chatbots and virtual assistants can now engage customers 24/7 with a level of sophistication that mimics human interaction, guiding them through complex purchases without the overhead of round-the-clock staffing.
The End of the Loupe? AI in Diamond Grading
Perhaps the most disruptive application of AI lies in the laboratories where gemstones are evaluated. David Block, CEO of Sarine Technologies, a leader in diamond technology, delivered a bold prediction: AI is on the verge of taking over diamond grading entirely.
“It will replace the repetitious, tedious jobs that are done in the lab,” Block stated. He emphasized that AI excels at tasks that are “deterministic and repetitive.” A human diamond grader, regardless of their skill, performs the same repetitive actions all day—examining color, clarity, and cut. “That’s a job that definitely AI can replace,” Block asserted. “I think it’s inevitable that AI will replace most of the repetitious work that is done in a lab. It won’t happen in a day, but I think it’s inevitable.”
This sentiment was echoed by Daniel Nyfeler, managing director of the prestigious Gübelin Gem Lab. Nyfeler described a scenario where AI serves as the first line of defense in gemology. In his lab, scientists are no longer bogged down by the initial, time-consuming examination of every stone. Instead, software analyzes the patterns in trace element chemistry—a task perfectly suited for algorithmic processing.
“Now the software spits out a result that says ‘This stone must not be heated’ with a 98.3% confidence,” Nyfeler explained. If the confidence level meets the threshold, the human expert merely performs a “30-second plausibility test, and bam, then it’s done.”
Shifting from Repetition to High-Value Expertise
The fear that automation will lead to mass unemployment was addressed head-on by the panelists. Rather than disappearing, jobs are migrating up the value chain. Block noted a historical precedent: the diamond cleaver. While the specific job of manual cleaving has largely vanished, “those 3,000 jobs have now been replaced by 50,000 people doing the job that replaced it.”
In the modern lab, this means gemologists are freed from the microscope to pursue more rewarding work. Nyfeler highlighted that his team can now dedicate time to field research, visiting mines, maintaining complex systems, and mentoring the next generation of gemologists. The technology brings them closer to the scientific core of their profession, rather than the rote monotony of grading.
Preserving “Savoir-Faire”: AI in Manufacturing and Craftsmanship
The intersection of cold code and warm emotion is where the jewelry industry faces its biggest philosophical challenge. Marie-Christine Grocq Parruitte, president of the manufacturing company MCGP, acknowledged that her business is integrating AI but drew a firm line in the sand regarding creativity.
“Jewelry is not a regular-consumption good,” Parruitte reminded the audience. “It’s conveying a lot of emotion. I don’t think AI is able to convey any type of emotion.”
However, Parruitte sees AI as a “tremendous tool” for operational excellence. It strengthens the reliability of analysis and aids decision-making without usurping the final call. “Of course, AI is not going to make the decision. But it will enable us to make better decisions,” she clarified.
Crucially, Parruitte pointed out AI’s role in preserving savoir-faire—the unique know-how of artisans. In an industry facing a talent shortage, AI can help capture and share collective knowledge, ensuring that the skills of the best artisans are not lost but rather used to train new recruits.
Leveling the Playing Field for Independent Retailers
One of the most optimistic takeaways from the CIBJO Congress was the potential for AI to democratize the industry. David Block argued that AI opens a “new world” for independent retailers, offering them data analytics capabilities previously reserved for retail giants.
“Can an independent retailer analyze his sales?” Block asked rhetorically. “Can he analyze his visits to his website compared to other people’s websites?”
With AI, the answer is increasingly yes. Artificial intelligence can provide deep insights into consumer behavior, tracking who is searching for what and predicting future inventory needs. This allows a small, family-owned jeweler to stock their shelves with the same predictive precision as a major luxury house.
Jon Key, founder of the London-based consultancy Key and Co., expanded on this, visualizing a future of hyper-personalization. “With AI, you have a totally different world, because it can start to think about 7 billion potential consumers and it can literally analyze every single one,” Key said. This ability to tailor recommendations to the individual taste of millions of consumers simultaneously could drive significant growth for nimble retailers.
Navigating the Risks: Ethics, Energy, and Accuracy
Despite the enthusiasm, the panel did not shy away from the potential pitfalls. Stephane Fischler, chair of CIBJO’s technology committee, warned of the “downsides,” specifically noting that AI models can “hallucinate” or provide incorrect facts. Furthermore, the massive computing power required to run advanced AI models raises valid concerns about energy consumption in an industry already scrutinized for its environmental footprint.
Lisa Koenigsberg, founder of Initiatives in Art and Culture, voiced the anxiety felt by many creatives. She urged the industry to view AI as a “multiplier rather than a replacement,” cautioning experts to use it with “vigilance, care, and as a tool.”
“There’s a lot of anxiety of what AI could do,” Koenigsberg admitted. The consensus was that regulation is necessary. As Jon Key noted, “No one really knows where is going… I don’t think anyone would disagree we need regulation and we need to proceed with caution.”
Embracing the Metamorphosis: A Call to Action
Mahiar Borhanjoo, chief commercial officer at De Beers Group, framed the current moment as merely the starting line. “This is a metamorphosis or an evolution,” he said. “Nothing is going to happen in one day or one year.”
However, waiting on the sidelines may not be an option. Jacques Voorhees encouraged jewelers to start experimenting immediately, even if they feel technically inept. His advice was practical and accessible: use the tools already available.
“If you are not sure how to incorporate AI into your business, good news: You don’t have to,” Voorhees quipped. “Go to ChatGPT or one of the other AI apps, tell it, ‘Here’s my business,’ and ask how it will incorporate it into the business, and it will write a 20-page paper on how you should be incorporating it into your business. Whether it will be correct or not is another question.”
As the jewelry industry stands at this crossroads, the message from Paris is clear: AI offers a glittering array of possibilities to increase efficiency, democratization, and profitability. The challenge lies in adopting these tools without losing the human soul—the story, the emotion, and the craft—that makes jewelry timeless.
