13 March 2024

In the fashion industry, there has been a surge in the adoption of artificial intelligence (“AI”), which transcends the creation of fashion and has evolved into a tool for customising marketing campaigns and refining individual shopping experiences. AI’s impact may be felt across the industry including by designers, marketers and customers. It may also benefit the industry’s efforts to adopt long-term and effective sustainable practices.

AI as a design partner

Forward-thinking designers are embracing the mutual benefits of collaboration. AI has the potential to act as a dynamic creative sounding board, offering a plethora of design alternatives rooted in data analysis of previous goods, themes, and inspirational images. Generative AI also expedites and streamlines the design process, translating the conceptual visions of designers into tangible 3D realisations. This collaborative approach empowers fashion houses to imprint their signature touch on innovative, limited-edition product drops, fostering potential collaborations between brands.

The paradigm shift brought forth by AI in design reached a pinnacle in December 2022 when fashion designers from Hong Kong's Laboratory for Artificial Intelligence in Design (AiDLab) showcased the tangible results of generative AI-supported designs in a groundbreaking fashion show, marking a watershed moment in the industry.

Personalised products at scale

The expanding era of e-commerce has begun to witness the emergence of personalisation as a potent tool, with AI leading this revolution. Retail giants like ASOS and startups such as Thread.com actively leverage AI to personalise the shopping experience. Tailored recommendations based on individual customer behaviour, preferences, and purchasing history not only enhance the shopping experience, but also redefine the landscape of consumer engagement. For instance, the ASOS homepage now features an entire section termed ‘Styles based on your shopping habits’ which collates at the customer’s fingertips an instant catalogue of products specifically tailored to them.

AI's impact on fashion marketing

AI-powered marketing tools allow fashion businesses not only to analyse data, but also to identify marketing strategies and target customers. This not only results in substantial time and cost savings, but positions businesses at the vanguard by anticipating trends, opening new avenues for customer outreach and ultimately increasing sales.

Fashion brands are using AI to analyse consumer data, including purchase history, demographics and preferences. By using recommendation engines employing AI algorithms, companies can create personalised marketing campaigns and product recommendations. This not only helps customers find relevant products, but also increases sales for fashion brands. This is currently employed by brands such as Zalando which uses software to analyse customer’s previous purchases and directly targets them with marketing ads for similar products.

Enhancing customer experiences

Behind the scenes, AI subtly shapes customer interactions with fashion companies, wielding tools such as text-generating AI for nuanced product descriptions and virtual clothing fittings that revolutionise the digital shopping experience. The potential for consumers to virtually 'try on' items before purchase, a concept already implemented in other industries, promises a revolutionary shift in the fashion retail experience. An example of this in action is ‘WayFair.co.uk’ where you can bring a piece of furniture to life by virtually placing it in your living room.

AI in supply chain management

Historically, one of the most complicated parts of the fashion industry has been supply chain management. Every stage of the process, from locating raw materials, controlling inventory and guaranteeing prompt delivery has the potential to be ineffective and wasteful. AI is now intervening to optimise and streamline these procedures, changing the way the fashion industry works.

With the help of AI generated algorithms, demand can be predicted by analysing past data, which improves inventory management. This can reduce overproduction, which is a significant problem in the fashion industry that damages the environment. Fashion brands can become more environmentally friendly and reduce waste by producing in accordance with anticipated demand.

Moreover, the strategic utilisation of mass data during the design stage minimises the likelihood of producing items that miss the mark, thereby contributing to a more sustainable and environmentally conscious industry. A recent example is Adidas, which uses AI to improve shipping and automate supply chain. Their systems keep tabs on personalised shopping experiences to produce more accurate stock levels.

Balancing innovation with ethical considerations

For all its promise of revolutionary improvements, AI's ascent is met with genuine concerns about potential job displacement and ethical considerations. Calls for new legal frameworks to safeguard artists and designers against AI's potential exploitation of their creations underscore the significance of navigating AI with due diligence. There are important and as yet unanswered questions over who owns the copyright in AI-generated output, which may become problematic for designers using AI-tools to enhance or alter fabric designs or otherwise.

Concerns have also been voiced regarding the extensive gathering of consumer data and the associated risks of potential data breaches. The increasing reliance on artificial intelligence to scrutinise intricate details of individuals' spending habits can create a sense of loss of control among consumers. Consumer advocates emphasise the need for reinforced protection within the framework of data protection laws to safeguard consumer interests, with a particular focus on the issue of consent and the extent to which shoppers are consenting to the mass collection of their data.

The long-term effects of AI in the fashion industry remain to be seen, and the genuine concerns of potential job displacement, ethical considerations and ownership of AI-generated output cast a shadow. At the very least, fashion houses and consumers alike should be aware of the benefits and potential risks of AI and are advised to keep a close eye on the incorporation of AI into the shopping experience.

Laura Patriche, Trainee Solicitor: lpa@bto.co.uk / 0131 222 2939

Lauren McFarlane, Associate: lmf@bto.co.uk / 0131 222 2939