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

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

Artificial intelligence (AI) in the fashion market is expected to grow at a CAGR of 40.97% from US$637.875 million in 2021 to US$7,057.820 million by 2028.

The way AI is changing the fashion business and influencing many parts of it is driving its growth. AI increases client pleasure and loyalty by using data analysis to provide personalized shopping experiences. Artificial intelligence (AI)-powered augmented reality and virtual try-on technologies enhance the online shopping experience by decreasing returns and boosting customer confidence. Secure transactions and operational efficiency are enhanced by supply chain optimization, dynamic pricing, and fraud detection. It helps the sector stay in step with changing customer tastes through its use in trend research, product innovation, and sustainability practices. The fashion market is a dynamic landscape that fosters efficiency and innovation, and AI is a crucial driver due to its diverse effects.

Furthermore, Shein and related businesses strive to supply fresh, stylish clothing to customers by marketing it online and using celebrity trends. With more people making purchases online and rapidly changing trends driven by social media, the fast fashion business is expected to reach $106.4 billion in revenue by 2022. Shein has surpassed rivals like Zara and H&M to establish a dominant market share in the United States with a centralized and fast-moving supply chain and data analysis of its consumers' search histories. This business model has attracted attention from other Chinese companies.

Increasing adoption of artificial intelligence

Customers in the fashion industry are getting pickier about their experiences as a result of their quest for personal expression. AI-driven recommendations, influencer-led inspiration, and customization options all help to fuel this shift. An emphasis on personalized appearance is taking the place of the previous one-size-fits-all approach. Brands are embracing innovative technologies in response to evolving consumer demands, which are increasingly centred around personalization. The need for personalized fashion experiences is a reflection of a significant change in how people engage with and view the industry.

These aims will be largely facilitated by artificial intelligence (AI), and the white paper will make sure that the UK is positioning itself to be the world's leading location for the development, testing, and use of AI technology. After spending more than £2.5 billion on AI since 2014, the white paper builds on recent announcements of £110 million for our AI Tech Missions Fund, £900 million to create a new AI Research Resource, and £8 million to establish an exascale supercomputer that can run large AI models. These announcements are supported by £117 million in existing funding and the new £8 million AI Global Talent Network, which will help hundreds of new PhDs for AI researchers be awarded.

Moreover, in October 2023, with the introduction of Lisa, the company's internal conversational generative AI platform, Mango, one of Europe's top fashion companies, is advancing its digital transformation. In less than nine months, the fashion firm has built its own conversational generative AI platform using a variety of models that Lisa employs, both proprietary and open-source. The new platform has Mango's customized interface, which is akin to ChatGPT and designed for usage by its partners and staff.

The United States artificial intelligence (AI) in the fashion market is anticipated to grow steadily.

The fashion industry is growing rapidly in the North American region, with the presence large number of AI companies in the country such as IBM, and Microsoft Corporation the market for AI in fashion is expected to grow. Additionally, the growing influence of social media and media adoption of local enterprises in the country is adding fuel for market growth in the projected period. Moreover, the companies in the region are focused on improving their AI presence across all sectors, and as fashion is one of the fastest segments the market is expected to grow.

New product launches are happening in the market of AI in the fashion industry. For instance, in June 2023, Google announced a new AI shopping feature that will help in virtually trying on clothes. This is a new generative AI model that helps in taking one clothing image and accurately reflects how it would drape, fold, cling, stretch, and form wrinkles on a diverse set of real models in various poses. In, the month of June this was only available for shoppers in the USA and women shoppers could try women’s tops across Google including brands such as Anthropologie, Everlane, H&M, and LOFT. Hence, as the brands are releasing the real importance of AI in the fashion industry coupled with the increasing focus of companies is anticipated to provide an edge for market growth in the projected period.

Additionally, investments in the artificial intelligence (AI) industry are increasing in the country. For instance, in May 2023, the U.S. National Science Foundation in collaboration with other federal agencies, higher education institutes, and other stakeholders announced an investment of US$140 million to establish seven new National Artificial Intelligence Research Institutes (AI Institutes in the country.

Market Key Developments

In September 2023, with the growing interest in AI-powered consumer technologies, Humane Inc. unveiled the complete form factor of its first product, the Humane Ai Pin. Before its official release on November 9, the Ai Pin was showcased at Paris Design Week in 2024 as part of a partnership with the design label Coperni. The screen-free, stand-alone gadget and software platform designed specifically for artificial intelligence is called the Humane Ai Pin. The wearable, which is built on intelligent clothing, is meant to blend in seamlessly with users' daily lives by utilizing a variety of sensors to enable natural and intuitive computer interactions.
In April 2023, a leading European online retailer of clothing and leisure products, Zalando, made available on its app and website a fashion assistant powered by ChatGPT in its first beta. By doing this, Zalando was able to fully utilize the potential of generative AI to improve the online clothes buying experience. Despite having one of the widest selections available, clients occasionally need extra assistance from Zalando to choose the ideal item.
In June 2022, Pinterest announced that they had finalized the acquisition of THE YES, an AI-powered fashion purchasing platform that lets users browse a customized feed based on their active input regarding brand, style, and size. The YES team has developed a thorough taxonomy of fashion that utilizes both human experience and machine learning to fuel an algorithm that encompasses hundreds of brand merchants on its platform.

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