Key Highlights:
- New York Fashion Week (NYFW) generates around $600 million annually for both the city and the fashion industry
- Yve Edmond, a New York City model, voices concern about potential exploitation in the AI-driven modeling era
- Brands use Artificial Intelligence (AI) to reduce return rates by addressing sizing issues, enhancing the shopping experience, and optimizing inventory management
- AI’s primary potential lies in its pivotal role in addressing sustainability by streamlining manufacturing, minimizing waste, and creating eco-friendly materials
The fashion e-commerce realm is a constantly changing and vibrant sector, as more consumers opt for online platforms to fulfill their fashion needs. However, alongside growth come obstacles, and the fashion e-commerce sphere is not exempt from them. From managing inventory to providing personalized recommendations, the industry faces numerous challenges that can affect both customer satisfaction and operational efficiency.
New York City recently hosted New York Fashion Week (NYFW), a bi-annual event that gathers the fashion world to celebrate the industry’s finest and showcase the latest trends. NYFW serves as a significant revenue generator, contributing approximately $600 million annually to both the city and the fashion industry as a whole.
You can also read: Germany’s Problem with right-wing AfD: Ineptitude of political mainstream
Despite its considerable economic and cultural significance, NYFW is under threat from the same existential challenge impacting sectors like media and technology: the encroachment of artificial intelligence (AI), which threatens to eliminate existing jobs and constrain future employment opportunities.
While the discussion surrounding AI-generated art remains divisive, with some artists embracing it while others oppose its presence in the artistic realm, some even contend that AI’s role in fostering a transparent and responsible fashion ecosystem makes it a more sustainable option.
The Dark Side of AI in Fashion
AI’s expanding use across various sectors, including media and customer service, is believed by business leaders to streamline workflows and simplify workers’ tasks through new tools. However, recent data from a November survey by Resume Builder suggests a different scenario, with approximately one-third of business leaders foreseeing AI leading to layoffs within the current year.
Yve Edmond, a New York City-based model, expresses concerns about potential exploitation in the AI-driven modeling era. She highlights the issue of individuals having their bodies scanned or photos collected over the years without ownership or claim, potentially limiting job opportunities for models.
Lalaland.ai leverages advanced AI to create hyper-realistic models representing diverse body types, ages, sizes, and skin tones, aiming for a more inclusive shopping experience. Despite its intentions, the move faced public criticism, with critics labeling it as problematic and racist, prompting the clothing company to issue an update.
Some companies have opted to exclude human models entirely, with Vogue Brazil and Vogue Singapore featuring AI-generated models on their covers, a move criticized as unethical and detrimental to models and industry professionals like photographers. Critics even accused the companies of pursuing profit at the expense of ethical concerns, labeling the move as dystopian.
How AI Tackles Apparel Returns Head-On?
While the shadowy aspects of AI persist, other companies endeavor to harness its potential, yielding substantial revenues.
Despite the convenience and extensive choices offered by online shopping, both consumers and retailers grapple with a persistent challenge: the high return rate of apparel. This issue causes frustration and inconvenience for customers and financial losses and logistical complications for retailers.
The expense of managing returns can be significant, typically ranging from 38% to 40% of the original product price. A considerable portion of these returns arises from fit-related concerns, as customers often find garments unsatisfactory in terms of fit.
Brands are employing Artificial Intelligence (AI) to mitigate return rates by addressing sizing issues, improving the overall shopping experience, and optimizing inventory management. AI algorithms analyze customer data, historical purchasing patterns, and body measurements to offer personalized sizing recommendations.
Through this implementation, brands can provide size suggestions tailored to individual preferences and fit requirements, thereby reducing the likelihood of receiving ill-fitting items. Such a level of personalization enhances the customer’s shopping experience.
Alongside, many fashion brands have integrated AI-powered virtual try-on tools, enabling customers to visualize how a garment would appear and fit using augmented reality technology. Through these tools, AI leverages product specifications and customer data to accurately predict garment fit.
AI’s Journey in Fashion’s Sustainability Makeover
Sustainability has emerged as a fundamental principle within the fashion sector, spurred by heightened consumer awareness and essential regulatory measures.
The more significant capacity of artificial intelligence, perhaps, lies in its pivotal role in tackling sustainability issues through streamlining manufacturing processes, minimizing waste, and facilitating the creation of environmentally friendly materials.
From evaluating the ecological footprint of production techniques to establishing circular fashion models, AI is driving the industry toward a more sustainable trajectory.
An illustration of a company promoting transparency in the fashion realm is EON, which links products worldwide to Digital IDs to foster enduring relationships, royalties, and data for brands. This initiative encompasses traceability, intelligent products, and digital passports for the product’s lifespan, bolstering consumer engagement.
AI algorithms, exemplified by those utilized by EON, meticulously monitor and assess each stage of the supply chain, ranging from raw material acquisition to production and distribution. This meticulous oversight guarantees adherence to ethical and sustainable standards.
In the dynamic realm of fashion and e-commerce, the delicate balance between tradition and innovation, ethics and efficiency, remains a captivating narrative. The encroachment of AI casts a shadow of uncertainty, revealing both its potential and pitfalls. Yet, amidst the apprehension, there is a glimmer of hope. Through the judicious application of AI, the fashion industry stands poised to revolutionize not only how we shop but also how we steward our planet.
