2025.06.07_Dubai and UAE Dark Horse WINNER of the AI Race_YT THUMB
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Jeweler's Advantage

Dubai: The Dark Horse WINNER of the AI-powered Jewelry Industry

The $20‑a‑Month Gift That Changes Everything

When the United Arab Emirates struck a blockbuster deal with OpenAI last month, the headline wasn’t the 1‑gigawatt “Stargate UAE” super‑cluster planned for Abu Dhabi. It was the footnote: every resident of the UAE—about 10 million people—will receive a ChatGPT Plus subscription at no cost. In a single stroke, the Gulf state removed the paywall to GPT‑4.5 and other AI models for an entire nation, essentially turning advanced generative AI into a public utility. 

The logic is simple: the more a population uses AI, the faster it innovates. And Dubai, already the largest rough‑diamond trading hub on earth after dethroning Antwerp in 2021, understands first‑mover advantage better than most.

 

From Gold Souk to “Silicon Souk”

Walk the alleyways of Deira’s Gold Souk today and you still smell molten metal and hear haggling in dozens of languages. Fast‑forward five years and you’ll also see shoppers slipping on smart rings that project virtual bracelets up their forearms, guided by GPT‑powered chatbots that speak flawless Mandarin, Hindi, or French. Cartier’s hyper‑realistic “Looking Glass” AR ring tool—piloted in Paris in 2023—shows the tech is retail‑ready.

By 2030, Dubai’s luxury ecosystem will be AI‑native:

  • Personalized commerce – Recommendation engines modeled on Taobao’s Wenwen assistant will curate “micro‑catalogs” per shopper.

  • Generative design at the bench – Jewelers feed text prompts into diffusion models, iterate in seconds, and 3‑D‑print wax moulds on site. The Gemological Institute of America has already validated the fidelity of AI‑generated renderings.

  • Robotic fabrication – Dual‑arm robots polishing Bulgari’s Serpenti bracelets in Milan were a teaser. Christian Tse’s modular robotic cells prove the economics work at scale.

  • AI models as brand ambassadors – Dubai start‑up Etika Jewels swapped live models for AI‑generated avatars on its site, doubling click‑through to product pages.

Give a city that already attracts 17 million tourists a year this technical toolkit and you don’t just modernize retail—you weaponize it.

 

Ten‑Year Outlook: The World’s First AI‑Driven Luxury Cluster

By the mid‑2030s, expect a “Silicon Souk” stretching from DMCC’s glittering Almas Tower to automated workshops in Jebel Ali Free Zone. Picture diamond tenders where rough stones arrive with blockchain provenance tags, are scanned by computer‑vision graders, cut by laser‑guided robots, and marketed to collectors via metaverse showrooms modeled after Alibaba’s digital Place Vendôme. 

Dubai’s bet is that citizen‑level AI fluency will seed thousands of micro‑brands, each born global from day one. Basma Chaieri, founder of Etika Jewels, frames it bluntly: “When every customer and every designer speaks AI, the distance between an idea and a product collapses.”

 

Meanwhile on 47th Street: Romance vs. Reality

New York’s storied Diamond District—West 47th between Fifth and Sixth—once handled the world’s sparkle. Today foot traffic is thinning, squeezed by e‑commerce margins Blue Nile exposed nearly two decades ago when it sold a $324,000 ring online, sight unseen. 

COVID delivered a temporary sugar high as locked‑down Americans splurged on jewelry, but even insiders admit the street’s future is uncertain. Extell’s hotel development looms, and a younger customer base prefers TikTok reviews over diamond dealers’ handshakes. 

 

How New York Can Skate to Where the Puck Is Going

  1. Create a unified digital marketplace for verified 47th‑Street inventory, powered by AI search and virtual try‑on.

  2. Embrace lab‑grown diamonds—Pandora’s cheeky “Lab‑Grown Diamond District” pop‑up proved the marketing power of the concept.

  3. Automate the bench: a shared robotics lab for stone setting and repairs could slash lead times and lure Gen Z consumers who value speed and transparency.

  4. Tokenize trust: blockchain provenance on every stone, viewable via smartphone, would restore the information edge the internet erased.

None of these moves require abandoning heritage; they demand augmenting it with the same tools Dubai is institutionalizing.

The Takeaway

Dubai is turning AI access into a national utility, a strategy that could cement its status as luxury’s most forward‑leaning marketplace within a decade. New York still has brand equity, but unless 47th Street rewires its business model with data, robotics, and radical transparency, it risks becoming a living museum of twentieth‑century commerce.

In luxury, history confers prestige—but innovation captures margin. The race is on, and this time the finish line may be somewhere between the gold souks of Deira and the GPU racks of Stargate UAE.

🧠 The Future Has a New Operating System—Are You Running It?

Dubai just gave every citizen the most powerful AI tool in the world. That’s not a tech flex—it’s a market strategy.
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To be honest, I hated AI at first, but this is really saving me time at the bench now. What's up, guys? This is Jesse here at Jeweler's Advantage. If you are new here, we are a consulting firm that specializes in AI for the luxury space. So, in the context of that, we're going to talk about the AI race in this video. If you're new to AI, which many people are right now, you're in good company if it's new. The AI race could be described as very similar to the space race. There's a very cold war era dynamic unfolding between the United States and China. And essentially, these two superpowers are competing with one another to have the best AI. Obviously, something like this was going to go down. And obviously, it's the US and China if you're here in 2025. So, what is interesting about this is in a previous video I talked about how this dynamic was going to be kind of like the rising tide that raises all ships.

You've got the best AI labs in the United States with the most funding. And then you also have China who is continually going scorched earth on the market. That means that they release open- source models that the whole world can have in order to keep the US from pulling away in the race. Basically, keep them from getting out too far ahead. They release these open source models and that makes it so other smaller developing markets would have access to really advanced AI and it makes it so the US doesn't corner the market on the technology. That's how that's going down. So, that's basically the AI race in a nutshell right now.

And in the context of the jewelry industry, I believe that there is a darkhorse winner for the AI race overall in how they'll deploy the technology. And then it is looking very very good for this country in regards to AI for a traditional industry such as jewelry. And that country is the United Arab Emirates, the UAE. If you are familiar with Dubai or Abu Dhabi, they are part of the UAE. So why do I think that this country is a darkhorse winner for AI? Well, it's because they've taken a completely different approach.

They're looking down the road down the racetrack. They're looking several chess moves ahead to after the models become commoditized. And what they've done is instead of focusing on trying to compete with the US or China in developing these models, they're investing into making sure all of the citizens have access to ChatGpt Plus. That's the $20 tier of Chat GPT, the most popular AI product on the market. So, why would that be a competitive advantage? The reason it's a competitive advantage is because in the United States, the power is consolidating into the tech industry. In China, the power will consolidate into the government, which runs most of the tech industry in China. So, these are concentrations of power. It's not necessarily ensuring that the technology is going to become ubiquitous and useful for the entire country. What would you do if you wanted that to happen? You would make sure that the citizens are using the best models like the UAE. So by making the models free and publicly available, it makes AI essentially the fiber of society.

It's like running water or electricity. You could go anywhere in the US and China, mainly the US, but certainly the more developed parts of China, and there's going to be electricity and there's going to be running water. What happens when AI becomes that available in a country that also has some developed in infrastructure and is very tech forward and is actively trying to find ways to make money outside of oil.

Well, that we're going to find out, I guess. Um, I would make the prediction that what this is going to mean is that the citizens that are going out and starting businesses and stimulating their economy are going to be more comfortable with AI as opposed to the white collar blood bath that we're about to see in the United States and all of the rioting that'll probably happen when robots come into factories. That all will probably happen because there are much more defined societal guard rails in like the social contract and what we all expect out of the American dream or whatever and that we're all supposed to get a job and the white picket fence and then like it's all ingrained. It's all taught to us from the time that we're young that that's how that's supposed to go. Well, if these other countries move to where the flag is going or move to where the puck is going and their use of the technology is ubiquitous, then they're going to have advantages over all existing in infrastructures and industries in markets that haven't done that. Now, if you're familiar with the jewelry industry, you know that Dubai is a hot market for luxury.

Also, you know that uh the jewelry industry has developing manufacturing in Dubai. So, think of all the people on 47th Street in New York that can barely use a smartphone or social media and then think of them competing with like a futuristic diamond district in Dubai. I can tell you who's going to win. It's going to be Dubai. So, we all need to adopt AI. We should be adopting practices like this in the United States. This is Jesse here at Jewelers Advantage. We'll see you in the next one.

UAE makes ChatGPT Plus subscription free for all residents as part of deal with OpenAI
https://www.businesstoday.in/technology/news/story/uae-makes-chatgpt-plus-subscription-free-for-all-residents-as-part-of-deal-with-openai-477948-2025-05-27

 

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UAE becomes world’s largest rough diamond trading hub as industry convenes for Dubai Diamond Conference 2022 – Emirates News Agency
https://www.wam.ae/en/details/1395303022926

Etika Jewels introduces AI generated jewellery designs and models in collaboration with Bright River – Zawya https://www.zawya.com/en/press-release/companies-news/etika-jewels-introduces-ai-generated-jewellery-designs-and-models-in-collaboration-with-bright-river-fvn6alib

 

Robotic Automation and the Future of Jewelry and Silverware Manufacturing – 3laws.io https://3laws.io/pages/Robotic_Automation_and_the_Future_of_Jewelry_and_Silverware_Manufacturing.html

Jewelry Manufacturing Technology: Enhance Jewelry Production – MakersRow
https://makersrow.com/blog/jewelry-manufacturing-technology/

AI Transforming Luxury in the Digital Era – Santa Media Paris
https://www.santa-media.com/journal/aitransforming-luxury

Internet threatens NY diamond dealers' way of life – Reuters https://www.reuters.com/article/us-diamonds/internet-threatens-ny-diamond-dealers-way-of-life-idUSN2039395320061221/

Life on the Street – JCK
https://www.jckonline.com/article-long/2023-state-of-the-diamond-district/

Pandora Turns a Parking Lot into a Lab-Grown Diamond District – EventMarketer
https://www.eventmarketer.com/article/pandora-lab-grown-diamond-district/

Robotic automation – Bench Jeweler: Library: Articles – Stuller https://www.stuller.com/benchjeweler/resources/bencharticles/?tag=robotic%20automation&srsltid=AfmBOopHA32E_4YanDWhav1o69I3zb4xZp7EwQvRRMTqUehis_L8zKJg


Demistifying Manhattan's Diamond District – U.S. News & World Report
https://www.usnews.com/news/cities/articles/2020-01-14/demistifying-manhattans-diamond-district

Unnoticed, UAE may have curated workable concept for AI regulation – Hindustan Times Opinion https://www.hindustantimes.com/opinion/tech-tonic-unnoticed-uae-may-have-curated-workable-concept-for-ai-regulation-101749291752536.html

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