During an interview with actress and friend Jessica Chastain at the Lincoln Centre in New York City, the 80-year-old designer said he thought models often looked lifeless once they had been airbrushed.
"We are easily in a period of over-retouching," he said.
"Some models end up looking as if they are coming out of a funeral parlous, all life taken out of the face.
"I hate that."
The Chanel designer, who has relied on sketches while building his creations for his entire career, also lamented the industry's use of technology during the design process as well as in photographs.
"Lots of designers these days don't sketch anymore," he said.
"They have studios or do it with a computer. I do everything myself because I like physically the work of sketching."