According to Bill Gates, the world is facing the most important tech advance in decades, just comparable to the graphical user interface (GUI), the visual display that made personal computing a reality today.
Companies cannot resist artificial intelligence because it can satisfy the insatiable desire for improved productivity. Major corporations are channeling substantial investments into developing their proprietary AI systems, which, in turn, automate tasks, extract valuable insights from data, and forge innovative value propositions.
The fashion industry, valued at $1.7 trillion in 2023, is no exception. AI benefits this important industry worldwide in many ways, from predicting trends to optimizing production to personalizing the shopping experience.
The question for the fashion industry is how AI can go beyond mere automation—and accelerate creativity and anticipate the trends and user needs.
In this article, we will explore 3 main benefits of how AI can transform the fashion industry worldwide.
1. Personalized Marketing Strategies
In the past, “personalized” marketing mainly meant segmented marketing campaigns with placeholders for generic customer information.
However, AI is ushering in a new era of true personalization.
One of the 2023 trends is having real personalization by using consumers’ interests and first-party data as the source of information.
Online marketing is about to change forever since Google is disabling third-party cookies starting 2024 to embrace a privacy-first approach.
Retailers can migrate from mere segmentation to personalization and create real personalized experiences.
Here’s an example from Birchbox where they use the purchase history as a personalization technique:
2. Lower Environmental Footprint
According to Fast Company, around 30% of online purchases are subsequently returned, much of which goes to landfill. In 2020, an estimated 2.9 million tons of returns were disposed of this way in the U.S. alone.
The leading reason for product returns is style (52%), followed by single-size, single-category products (33%) and size issues (15%). AI and machine learning can help mitigate these risks that are costing millions of dollars annually. *Source: https://fashionunited.uk/
Algorithms are now capable of predicting trends and analyzing customer preferences, enabling fashion businesses to craft designs that resonate strongly with their target audience. A good example of algorithms predicting buying intent in ecommerce is Wordless Search.
This opens up exciting new opportunities for businesses to create innovative, market-driven designs that are not only aesthetically appealing but also commercially viable.
3. Predictive Search Engines
Predictive Search engines are one of the best gifts AI has given us. These tools for searching can enable visual search capabilities, allowing customers to find hard-to-describe visual products. By combining visual AI and AI-based product search and discovery platforms, websites can now benefit from AI.
- Increased conversion rates: AI visual search makes it easier for shoppers to find the products they are looking for, which can lead to increased conversion rates.
- Higher average order value: AI visual search can help shoppers to discover new products that they are interested in, which can lead to higher average order values.
- Improved customer experience: AI visual search can make shopping more fun and engaging for customers.
- Increased brand loyalty: AI visual search can help retailers to build stronger relationships with their customers by providing them with a more personalized shopping experience.
AI tools for searching can enable visual search capabilities, allowing customers to find hard-to-describe visual products—a combination of a Visual AI and an AI-based product search and discovery platform.
Here’s an example of a Visual AI tool in action:
Wordless Search tools give shoppers an experience of discovery and inspiration better than Pinterest or TikTok ever could – engaging, emotional, and accessible.
