The fashion industry is increasingly turning to artificial intelligence (AI) to streamline operations and enhance customer experiences. According to GlobalData’s patent analytics, AI-related patents have nearly tripled between 2016 and 2023. Retailers are recognizing the value of AI in optimizing their supply chains and future-proofing their businesses.
In 2021, AI patents in the retail sector reached 5,154, up from 3,810 in 2020. The surge in patent filings can be attributed to the impact of the Covid-19 pandemic, which compelled retailers to invest in AI and automate their supply chains. However, in the first half of 2023, investments in AI have slowed due to inflationary pressures. As companies face budget constraints, they may shift their focus away from innovation, resulting in a decline in the number of AI development patents filed by retailers.
To overcome this challenge, retailers are likely to seek partnerships with existing AI providers instead of filing their own patents. These partnerships can help them capitalize on the benefits of AI without the need for extensive in-house development. One notable example is eBay, which has made significant strides in AI investments, leading to a $1 billion increase in sales per quarter.
Apparel and footwear brands have also embraced AI technology to improve their customer experiences. For instance, US sportswear giant Nike introduced the Nike Fit app, allowing customers to scan their feet with a smartphone camera for accurate sizing. By collecting data from app users, Nike can continuously improve the app’s accuracy, reducing returns and boosting profit margins.
UK online retailer Pretty Little Thing has leveraged both text and visual search tools to enhance customer convenience and usability. Customers can search for items using either descriptions or images, making it easier for them to find what they’re looking for.
Swedish fashion retailer H&M has employed generative AI to test and refine designs for its Conscious Exclusive collection. By analyzing customer preferences and current trends, H&M can create new designs that align with customer needs, ensuring their products remain appealing and relevant.
French luxury fashion company Kering has introduced a personal shopping assistant named Madeline. Powered by ChatGPT, Madeline enhances the user experience on Kering’s KNXT marketplace by providing personalized recommendations based on customers’ preferences and price ranges.
UK retailer Marks & Spencer (M&S) utilizes large computer vision models and CAD data to automate design and documentation processes for various products. This automation includes tasks such as writing product descriptions and editing photos, saving time and increasing efficiency.
Another UK retailer, Next, employs generative AI to generate responses to customer queries, improving response times and ensuring consistent customer service.
German online retailer Zalando is set to launch a tool powered by ChatGPT that assists customers in finding products tailored to their specific needs. Customers can ask questions, and the tool will provide relevant suggestions based on the given criteria.
As GlobalData projects, the value of AI is expected to reach $908.7 billion by 2030, more fashion brands are likely to follow suit and embrace AI to streamline operations and enhance customer experiences. The integration of AI technologies across the fashion industry is transforming the way retailers interact with customers, optimize their supply chains, and deliver personalized experiences. With AI becoming increasingly pervasive, it is clear that the fashion industry will continue to embrace this transformative technology to boost efficiency and stay ahead in the competitive landscape.
