How Artificial Intelligence Is Transforming The Fashion Industry

Current estimates suggest the global fashion industry is worth USD1.5 Trillion to USD1.7 Trillion. There’s no doubting the importance of the industry as it's a valuable source of economic growth for many countries. The fashion industry is not a stranger to technological disruption so it is imperative to know how the exponential rise in Artificial Intelligence (AI), especially generative AI, will impact the industry. McKinsey's analysis suggests that generative AI could add $150 billion to $275 billion to the operating profits of the apparel, fashion, and luxury sectors in the next three to five years.

Accelerating Design

AI can help design studios accelerate the entire design process. According to McKinsey, Generative AI allows for the input of sketches and intricate details, empowering designers to effortlessly generate a diverse array of designs and fostering a new level of creativity. This integration of artificial intelligence not only streamlines the design process but also opens up new possibilities for pushing the boundaries of conventional fashion, marking a significant leap forward in the intersection of technology and style. Furthermore, AI can also help with identifying & forecasting the latest trends pertaining to colour, design, and style by scraping through social media (Fashion Retail Academy, 2023). Retailers can use this information to inform their designs to ensure that they produce clothing lines that align with future consumer demand. I still believe it is naive to think that designers will be replaced by AI. I believe that AI will be an extremely unique tool designers can use for inspiration and creating unique designs that both designers and customers would be proud of.

Customer Experience and Personalisation

AI will enable fashion retailers to provide personalised product & service offerings (Scott Fishman, 2023). Algorithms can sift through copious amounts of consumer data and recommend styles, discounts, and sizes that are tailored to specific people. For instance, based on gender, budget, and style preferences a retailer can recommend items that will appeal to specific customers. This can lead to fewer returns, increased sales and higher customer satisfaction.

Smart mirrors and virtual try-ons also help retailers deliver great customer experiences. According to Business Insider, online returns cost the retail industry a whopping USD 228 Billion in 2022. Virtual Try-on technology startups such as Zyler are trying to solve this problem by giving consumers the opportunity to test out clothes without physically trying them on. Beyond the cost savings to the retailer, this use case of AI also grants consumers the opportunity to save money and choose outfits that meet their desires. With the latest announcement from Open AI, fashion retailers can also create 24/7 personalised stylists leveraging ChatGPT to provide personalised recommendations to customers.

Manufacturing & Sustainability

One of the biggest issues that plague the industry is sustainability. The textile industry uses a lot of toxic chemicals, particularly in processing, which often leads to severe damage to water basins, soil, and biodiversity. In addition, the industry produces 2.1 billion tonnes of waste such as disposed clothing or off-cuts each year, of which only 20 per cent is recycled according to the World Wide Fund (WWF) for Nature. AI can help companies create a more sustainable future for the industry. For instance, utilizing AI can help manufacturers identify sustainable materials and reduce waste with the use of AI robots and trend forecasting.

Marketing & Strategy

Generative AI can help fashion brands with campaign strategy and content creation across diverse channels (McKinsey, 2023). Particularly notable is its prowess in crafting content tailored for platforms such as TikTok, where the rapid identification of patterns and trends is crucial. Marketing teams will be able to brainstorm marketing ideas and also create eye-catching marketing collateral. Some apps also allow e-commerce stores to use AI models to advertise their clothing lines instead of enlisting real-life influencers. This significantly helps aspiring entrepreneurs with limited marketing resources. AI also helps retailers formulate inventory and pricing strategies due to its ability to identify trends within sales data. This helps retailers determine how much inventory they need for specific periods throughout the year.

From design innovation to sustainable manufacturing, personalized customer experiences, and strategic marketing, AI emerges as a transformative force, propelling the industry towards a brighter future. I envision the industry becoming more accessible to aspiring fashion founders and more tools being created by innovative entrepreneurs. Here are 3 tools disrupting the industry already.

1. Designovel: Designovel specializes in delivering cutting-edge technology that streamlines critical yet labour-intensive operations. Solutions encompass rapid and cost-effective processes for Trend Recognition, Market Analysis, and Product/Service planning, empowering businesses to stay ahead in today's dynamic landscape.

2. Visual Hound: Generate an endless array of lifelike product images to enrich your mood boards and enhance your design workflow. Effortlessly visualize your product designs with precision before advancing to the production stage.

3. VModel: VModel.AI serves as an artificial intelligence fashion model generator designed for streamlined and budget-friendly on-model photography.

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