Decoding the impact of AI and machine learning in the fashion industry.

Digitization in the fashion industry is continuously transforming the way brands engage with customers, providing data-driven, customer-centric services. Recent technological advancements such as Artificial Intelligence and Machine Learning are providing automated solutions in fashion. Such technological innovations have a substantial role, revolutionizing the industry. From designing to manufacturing and logistic supply chain to marketing, AI and machine learning technologies are meeting fashion brands' requirements of customer personalization.

By leveraging AI and ML, fashion brands are now able to understand fast-changing fashion trends and deliver more customized services to customers. To alleviate the risks of bankruptcy, more and more companies are investing in AI. According to the report, global spending on AI technologies by the fashion and retail industry is projected to reach US$7.3 billion through 2022.

As the global fashion industry is valued at an estimated US$3 trillion and representing 2 percent of the global GDP, the most prevalent AI application is Chatbots. 

Fashion Brands Using AI and ML

Dior

Dior, a French luxury goods company, uses an AI beauty assistant via Facebook Messenger called Dior Insider. The platform is part of the company’s plan to offer a more personalized approach to skincare and cosmetics shopping. This AI beauty assistant app allows shoppers to communicate with a virtual chatbot, ask answers to product-related questions, or access to branded social media content.

Alibaba

In order to revolutionize customers’ shopping experience, Alibaba uses AI technology to simplify the apparel shopping experience. With the launch of the FashionAI store, the company enables e-tailers to quickly detect consumer preferences and sell trendy products. The FashionAI store uses three key features to streamline fashion retail for customers, smart mirrors, intelligent garment tags, and omnichannel integration. These technologies specifically benefit customers by giving AI-driven fashion recommendations to their style preferences.

Nike

Nike leverages AI to improve customer engagement and personalize the consumer experience. Three years back in 2017, the fashion brand partnered with advertising agency R/GA to launch the Nike On Demand campaign which used IoT data to foster an AI assistant service to encourage exercise or behavior adherence. Prior to this in 2015, Nike acquired a patent based on the Augmented Reality Design System that paved way for holographic technology to be applied to the design of shoes. A year later, they devised self-lacing shoes, inspired by the iconic footwear from the movie ‘Back to the Future’.

Tommy Hilfiger

Tommy Hilfiger is one of the leading fashion brands in the world. The company in 2018 joined with IBM and the Fashion Institute of Technology (FIT) to leverage AI to improve its designs. The project, called Reimagine Retail, was focused on using AI to envisage future industry trends and improve the design process. Consequently, fashion students could learn a myriad of technical skills like natural language processing (NLP) or computer vision to design personalized clothing.

Along with such companies, Amazon, Macy’s, VF Corporation, Nordstrom, among others are also capitalizing on artificial intelligence and machine learning to deliver improved and personalized customer experience.