Use Cases of Artificial Intelligence In Online Fashion Retail

Artificial Intelligence (AI) is a disruptive technology that has found its way into the fashion sector. According to Precedence Research, the global AI in fashion market size was valued at $1.58 billion in 2023. What’s more interesting is that it’s expected to grow to $49.07 billion by 2033 with a CAGR of 41% in this decade.

Moreover, a recent survey by Statista revealed that 34% of the fashion industry professionals in the US, UK, and China confirm that they used Generative AI for marketing, particularly writing copy.

Continuing the growth of AI in the fashion industry, it is crucial to ascertain what AI is and how the fashion industry is changing because of it.

Artificial Intelligence (AI) is defined as the ability of a machine to mimic the way a human brain functions in doing its tasks. AI technologies that can assess and make decisions based on large quantities of information, as well as patterns. In the fashion business, Artificial intelligence I improves general fields like design, logistics, and customer satisfaction.

Generative AI, a subcategory of AI, designates the generation of new content from given data, which influences design and marketing profoundly.

Let’s start with the most common one – Personalization via AI.

In its simplest form, the use case of AI involves analyzing certain choices made by the customer and recommending products based on this assessment. You may have noticed that while shopping at online stores such as Amazon, Zalando, etc., you are offered products that correspond to your preferences.

If browsing history, purchase history, and other factors, such as social media activity, can be identified, AI can suggest products that would be of interest to particular customers. These levels of personalization make the shopping experience more fun and individualized to make it appealing to all customers.

Another use of Artificial intelligence is in the virtual fitting of clothes in which customers get to preview clothing items before buying them physically. This technology involves the application of augmented reality (AR) as well as computer vision to give detailed images of exactly how different sorts of garments fit and drape, thus offering a much better online buying experience as it eliminates the uncertainty associated with acquiring garments online.

Some of the AR applications include Virtual fitting rooms adopted by Sephora and Warby Parker. For instance, Sephora’s Virtual Artist lets customers apply makeup on and remove it on the Virtual screen while the Warby Parker app lets users wear glasses frames virtually. Likewise, fashion retailers are employing it to help clients understand what the clothes look and feel like on them.

AI systems help with determining demand patterns and managing the stock to avoid problems with overstocking and running out of stock. This means through sales history, average current sales, and outside factors such as seasonality, AI can help the retailer stock up on certain products that are likely to be popular while avoiding stocking on too many items that may not sell.

For instance, Zara is relying on artificial intelligence to forecast which products will be in demand in the subsequent seasons. This ensures that less inventory is kept on the shelves for a long time hence less wastage once the items are not sold. With AI in retail, demand forecasting, a strategic position on fashion trends and customer demand is achieved by Zara.

Generative AI chatbots offer prompt customer service, they attend to inquiries and can suggest products to a client. These chatbots are always present hence customers can always be able to seek assistance at their convenience. They can easily respond to several common questions, explain how to buy a product, and may be useful in tracking an order.

H&M applies artificial intelligence chatbots in their internet site and application to help clients. The customers can get information about the availability of certain products, what kind of outfits would flatter them, and what to do if there is a problem with an order. This not only enhances customers’ satisfaction but also allows the human agents to deal with more challenging queries.

AI helps designers to come up with new designs by studying existing fashion trends. Through analyzing data on social networks, trends in fashion shows, and retail sales, AI can predict potential trends for further use in the design of products. This has benefits for designers since they are able to anticipate what is in demand and design collections that sell well.

Recently, Tommy Hilfiger has collaborated with IBM and the Fashion Institute of Technology to apply artificial intelligence for inspiration. This AI system searches for patterns and presents new designs based on a database of hundreds of thousands of images from past fashion shows, social media, and street fashion. This kind of partnership enables the Tommy Hilfiger company to develop and sustain its presence within the highly competitive fashion retail business.

Stella McCartney applies artificial intelligence to improve sustainability within the production chain. The brand uses AI to monitor material use and other related aspects in a bid to harness fabrics and curb wastage. It also keeps the brand sustainability objective intact and minimizes expenses at the same time.

By minimizing resource consumption and wastage, AI assistants contribute to sustainable practices for brands. Based on the data collected on production processes, supply chain management, and customer trends, more sustainable solutions can be found with AI. This includes the use of fabric, energy in the process, and the amount of waste that is produced in the process of making the clothes amongst others.

The use of AI is revolutionizing the online fashion retail business at a disproportionately high level. From virtual shopping, virtual fitting rooms, and store inventory to customer relations, product design, and environmental conservation, the use of AI has several advantages that contribute to improved work productivity, client satisfaction, and business profitability.

Fashion retailers that embrace AI technologies, will remain relevant and able to fulfill consumers’ new expectations facilitating the growth of the fashion industry to a new age of innovation and vigor.

At Techtic, we help fashion retailers apply AI technology to optimize business processes and improve customer experience. Our experience in eCommerce software development allows us to make recommendations on how your business can incorporate AI technology to improve operations. Techtic will help you bring the best AI advances to your fashion business and become even more successful.