New generation art buyers are being targeted by London's desire to attract a diverse range of art enthusiasts.

• Phillips and other auction houses have made efforts to draw in younger buyers, many of whom are passionate about contemporary art created by living artists.
• Younger artists are increasingly being showcased at art fairs such as Frieze London, with fair director Eve Langret observing a "generational shift."
• According to the Art Basel & UBS Art Market Report 2024, some collectors are retiring from the art market as they age.

To attract new art buyers and showcase emerging artists, London is considering slowing down the art market.

In 2023, global art sales decreased by 4% compared to the previous year, reaching $65 billion, despite two years of growth, according to the Art Basel & UBS Art Market Report 2024.

Elio D'Anna, co-founder and CEO of the House of Fine Art (HOFA) gallery in London's Mayfair district, has shifted his focus toward younger collectors and younger artists.

"Five years ago, our target buyers were mostly between 35 and 45 years old, with an almost equal split between men and women. However, we are now observing a shift towards younger buyers aged 25 to 35," he said on CNBC's "The Art of Appreciation."

The rise in young art collectors coincides with the growing interest in the application of artificial intelligence in the art industry.

D'Anna's focus is certainly on HOFA, which represents artist Sougwen Chung and their robot Chung designed to collaborate on artwork. Chung, who identifies as they, refers to the machine as a drawing operations unit, or DOUG.

Chung stated to CNBC that he mainly focuses on converting digital data into tangible works that can be experienced by an audience through robotic performance and artifacts.

Chung, a former MIT Media Lab researcher, stated that they trained the robot using 20 years of data from their own drawings. "It was fascinating to see my own artistic influence, decision-making process translated into a machine system," they said.

In October, a London auction house, Phillips, sold one of Chung's pieces, "Spectral," for $35,000 as part of a sale called "Spaces," a collaboration with HOFA.

Younger collectors are increasingly purchasing the works of living artists, as seen by Phillips. For Henry Highley, head of European private sales at Phillips, "Spaces" represents the intriguing overlap of technology and the arts.

"Philips recognizes the importance and significance of AI arts in the broader art market, as Highley told CNBC. "We really want to have something fresh and new," he said."

'Generational switch'

In the "Focus" area at Frieze London, work by younger artists was displayed in gallery booths near the entrance, attracting attention from wealthy collectors and celebrities.

Eva Langret, Frieze London Director, discussed with CNBC's Tania Bryer during the October event how sections like the 'Focus' sections, which represent younger artists, are considering the generational shift and the kind of artists that younger collectors are interested in supporting.

According to the Art Market 2024 report, dealers prioritize finding new buyers, with some clients being described as "aging-out" or having their collections reach capacity.

The report stated that the U.S. and Europe were "fundamentally saturated" and had a shortage of next-generation collectors in certain sectors. In 2023, the U.S. was the largest art market globally, while China surpassed the U.K. to claim the second spot.

As part of "Focus" at Frieze, gallery Ginny On Frederick showcased an installation by multidisciplinary artist Charlotte Edey. Her work consisted of a series of drawings and tapestries displayed in wooden frames.

Edey described her experience exhibiting at the fair as "a unique level of exposure," and explained to CNBC that her work explores the emotional and psychological aspects of the domestic space through the use of images of interior spaces.

Cedric Fauq, the curator of "Focus," stated that the section provided a unique opportunity for emerging artists to push their own practices, try new things, and expose their experiments to the world.

Frieze aims to draw in Generation Z and Millennial buyers through its Frieze Viewing Room website, as Langret explains. "The younger generation is at ease with purchasing art online and exploring what the fair has to offer online," she stated.

Contemporary art galleries, including Moco Museum with locations in Amsterdam, Barcelona, and London, are targeting younger audiences. Kim Logchies-Prins, co-founder of Moco Museum, stated that young audiences are a priority. "They want to feel welcome, and I curate with them in mind," she said.

"Our gallery always showcases great names in art, including Andy Warhol, Jean-Michel Basquiat, Jeff Koons, and emerging artists. This allows you to experience a diverse range of art in one visit," Logchies-Prins stated.