The Operation of Artificial Intelligence (AI) in the Fashion Industry

From design to predicting consumer sentiment, AI is changing the way fashion is produced, marketed, and consumed.

Phuong Trang
August 23, 2024

Artificial intelligence is rapidly developing in every industry, and the fashion industry is no exception. From design to predicting consumer sentiment, AI is changing the way fashion is produced, marketed, and consumed. With the ability to analyze huge amounts of data, AI brings new opportunities for designers, retailers, and customers. Join EDUTO to explore how AI is used in fashion.

What is artificial intelligence and how does it work?

The term “artificial intelligence” (AI) refers to computers and machines that can simulate human problem-solving and decision-making abilities. AI is designed to perform tasks that typically require human intelligence, such as recognizing patterns, making decisions, and understanding natural language. There are four main types of artificial intelligence: reactive AI, limited-memory AI, Theory of Mind AI, and self-aware AI.

AI is used in the fashion industry in many ways to enhance customer processes, speed up production and business operations.

Today, AI is used in fashion industry in many ways to enhance customer processes, speed up production and business operations. Typical applications of AI include: Fashion Business Operations, Fashion E-commerce, Fashion Retail, Fashion Marketing and Customer Relationship Management. Therefore, AI is playing an increasingly important role in the fashion industry, helping companies streamline processes, cut costs and improve customer experience.

What is artificial intelligence and how does it work?

AI in the Fashion Business

In this issue, EDUTO suggests to readers applications of AI in fashion business with four main functions:

1. Trend prediction and trading

When it comes to retail data analytics, AI is quite useful in predicting trends and sales in the fashion industry. Fashion buyers can also use this information to predict customer behavior and reduce the number of unsold items each season. In addition, AI is capable of analyzing huge amounts of data from many sources such as social media, runways, fashion blogs, sales data, and other trend forecasting tools.

This information is combined with past product performance and customer behavior data to create the most optimized collection of products that best match the retailer’s target audience. AI can not only provide shoppers with information about which products are or will perform well, but it can also provide insights into specific components of a garment such as color, print, sleeve style, neckline, etc.

Additionally, AI is capable of providing real-time data, allowing procurement teams to take a more proactive approach. This will help them stay relevant and ahead of their competitors.

Research and trend analysis by galleri5 – an AI-powered influencer marketing analytics and content management platform.

Read more in this article: How to apply Artificial Intelligence - AI in Education?

2. AI in design and product development

From using AI tools to forecast trends for elements such as color, material, pattern and stitching, as well as analyzing past and future performance metrics, designers can create new product designs. This allows designers to quickly and accurately create designs that will lead the trend, and then put them into production as complete garment samples. Designers can then adjust the designs accordingly before finalizing the final version.

More importantly, AI can be used to streamline much of the manufacturing process by creating digital samples and performing fit tests. It can also be a lifesaver in automating precise fabric quality control, pattern investigation, color matching, and defect detection. This has significantly reduced the time needed to design and test products before they go into production.

Applying AI in Tommy Hilfiger's design.

3. Visual merchandising and styling

Another interesting AI feature that is loved by both manufacturers and customers is prototyping, online styling, and visual merchandising. Essentially, AI can analyze customer data and preferences to provide personalized recommendations to online shoppers and provide styling tips. By displaying products that match users’ preferences, brands can improve the entire online experience, increase customer satisfaction, and ultimately increase sales and revenue.

Retailers can use AI platforms and tools to build, monitor, and manage customer style profiles. Based on the information users provide, AI can generate personalized recommendations for each person, speeding up the virtual style matching process. These outfits can then be added to the shopping cart, shared via email, or shipped directly to the customer.

AI can also be used to create personalized product recommendations and separate pages based on different trends, customer segments, and geographic locations. This is especially useful when creating custom pages for paid advertising purposes as it can significantly speed up the manual product placement process and reduce costs.

Visually coordinate outfits with AI.

Read more: EDUTO's AI Library

4. Inventory management and data analysis

One of the main benefits of artificial intelligence in the fashion industry is that it can quickly make sense of complex data and then provide in-depth analysis. This is especially useful for merchants who need to manage inventory, pricing and costs, as well as analyze competitors.

Additionally, AI can significantly improve every aspect of inventory control and management by reducing stockpiling and overstocking. Retailers can use AI to assess where and when products should be placed based on location and seasonality. This allows retailers to stay ahead of the curve in determining where supply and demand are, thereby reducing excess inventory and waste.

Finally, retailers can use AI to monitor competitor pricing to determine the most efficient solution for products and prices. This will result in the best ROI and the most competitive pricing. As a result, they can determine the best time to keep prices low while maintaining minimal profit and when to increase prices slightly to maximize profit.

With its superior properties and endless potential, artificial intelligence has many possibilities for wide application in the fashion industry.

Personalized recommendations for each customer thanks to AI.

EDUTO – Leading Technology Partner in Vietnam

EDUTO – Leading Technology Partner in Vietnam

Established in 2020, EDUTO is one of the leading IT companies in Vietnam, specializing in providing digital transformation consulting services and software solutions in the fields of finance, healthcare and retail for domestic and international enterprises. With the desire to contribute to enhancing Vietnam's position on the global IT map, EDUTO aims to bring innovative technology to life by leveraging the technical workforce in Vietnam, and the vision of becoming a leading IT company in the ASEAN region.

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