Artificial Intelligence (AI) in Fashion Market - Forecasts from 2023 to 2028

The AI in fashion market was valued at US$637.875 million in 2021.

The fashion industry is one of the fastest-growing markets across the globe. It caters to the dressing needs and fashion sense of different segments of customers. The adoption of Artificial Intelligence (AI) in the fashion market can be done at various stages and departments. From customizing e-commerce sites to managing inventory and supply chains, AI can help fashion brands optimize their sales and imprint their market value. It predicts trends; helps develop new products and services, provides consistent customer service, and generates content and marketing strategies. AI in the fashion market helps the company make data-driven decisions and the customers make rational decisions. The styling preferences, fabric choices, and seasonal trends might differ for different people and on different occasions. This helps maintain an optimum level of inventory of raw materials and final goods.

Market Drivers

Reduction of the time spent browsing through garments.

The enormous number of products and garments launched by a brand makes it a time-consuming process for customers to go through each and every product to find a garment that matches their requirements. To overcome this, all the brands and companies adopt Artificial Intelligence and Machine Learning software to understand the customer’s style and fashion preferences based on their previous purchases or online searches and display the garments that fit the category. For instance, Amazon and Ajio use cookies, browser history, and previous purchase orders to suggest new purchases or orders suiting the customer’s style preferences for customers browsing their online store. Other than this, the e-commerce sites of different brands keep up with the current trends in the fashion market and display their products matching the current trends to their customers. Therefore, customers can avail of various features and filters available on the brand’s website to reduce the wastage of time spent browsing through other garments.

Visual Search feature

The visual search feature opted for by various e-commerce retail sites and brands reduce the workload of the customer who can just use a picture to find garments that match the picture exactly or have higher similarity with the picture. This feature is greatly useful for customers who are not accustomed to texting or typing on keyboards. For example, Myntra has a feature of letting its customers upload a picture and all the apparels and products that match the picture are displayed for the customers. These AI-equipped features of fashion brands’ e-commerce sites can help attract more customers and maintain their customer base. These factors inspire and motivate fashion brands and companies to adopt AI and automate business operations for better functioning and increasing profits and sales turnover of the company.

The lack of creativity in AI could pose a threat to its adoption in the creating and manufacturing side of the fashion industry. The main reason for the brand value of different fashion brands is their creativity, uniqueness, and exclusivity. The designs by each registered brand are different from the others and reflect the creativity of the designer behind each cloth piece. Therefore, the lack of creativity in AI prohibits the complete automation of the manufacturing process as it will need human input to create new clothing designs.

Market Developments

In February 2023, Beunique Integrated Global Concept, a Nigerian fashion garment company announced the launch of a new AI application that will help its online customers take a skin diagnosis, to help identify any skin allergies of the customers. This diagnosis procedure has been checked and verified by dermatologists. This feature will stop the customers from buying any fabric that they might be allergic to.

In November 2022, Zero10 launched an Augmented Reality (AR) application that allows users to try on outfits and garments virtually and create a digital wardrobe. Later, the company introduced new features to this application in February 2023 where the users could create and sell their digital fashion designs through this application. It is not necessary that the user needs to have expertise in the fashion field, all users have equal access to this feature.

North America holds a notable share of AI in the fashion market.

North America has numerous software and technology companies offering Artificial Intelligence based solutions and services, which has driven the demand for more efficient and effective AI solutions in the fashion market. This, in turn, has spurred investment in AI solutions for fashion industries. A few of the prominent players in AI in the fashion market from North America are Stitch Fix, Inc., True Fit Corporation, IBM, Amazon, and Microsoft. These companies have collaborated with numerous fashion brands and companies to digitalize and adopt AI in their functioning and business operations. They are constantly evolving with their AI technology with the aim of delivering better results to their client companies and improving their product and service portfolio.

Market Segmentation:

By Application

• Design
• Trend Forecasting
• Inventory Management
• Return Processing
• Customer Support
• Others

By Offering

• Software
• Services

By Technology

• Machine Learning
• Robotic Process Automation
• Computer Vision
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Other
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others