The Transformative Influence of Artificial Intelligence on the Fashion Industry

This chapter examines the multifaceted influence of AI on the fashion industry, exploring its transformative potential across various domains, including design, production, marketing, and customer experiences. The chapter focuses on three primary areas where AI implementation is most prominent: Operations, Supply Chain Management, and Marketing. Within Operations, AI is revolutionizing creative design and trend forecasting, material innovation, fabric and material selection, pattern generation, and optimization, and ultimately enabling the industry to adopt a broader set of sustainable practices. In Supply Chain Management, AI fosters efficient inventory management and supply chain optimization while also playing a crucial role in fraud detection and security. Regarding Marketing, the transformative effect of AI is evident in its ability to improve customer experience and enable personalization, deliver fashion styling, facilitate phygital experiences, and enhance customer service through AI-generated content. The chapter provides a comprehensive review of the current state of research and provides real-world examples of companies and AI-powered tools that are leading the way in AI adoption. While acknowledging the numerous opportunities that AI presents for the fashion industry, the chapter also addresses several critical issues, including ethical considerations, transparency concerns, copyright and intellectual property challenges, bias in AI algorithms, and the potential impact on labor ethics. The chapter concludes by outlining potential future scenarios and research directions, emphasizing the importance of responsible AI implementation and the need for ongoing exploration of the evolving relationship between AI and the fashion industry.