Artificial Intelligence (AI) is transforming the fashion industry, from trend forecasting to sustainable manufacturing. By leveraging AI-driven solutions, brands can boost efficiency, minimise waste, and maintain a competitive edge in a rapidly evolving market.
Sustainability is now central to fashion, with AI accelerating eco-conscious innovation. Machine learning analyses vast datasets to optimise production, align collections with consumer demand, and reduce waste. Predictive design tools mitigate overproduction—one of fashion’s biggest waste contributors—while AI-powered supply chains enhance efficiency and transparency. Blockchain integration further enables brands to track product lifecycles and lower carbon footprints.
During a retail conference in Berlin in January, Peter Pernot-Day, Shein’s Head of Global Strategy and Corporate Affairs, highlighted the role of AI in minimising waste. Over 5,000 Shein suppliers now use an AI platform to analyse customer preferences, allowing the company to produce small merchandise batches that match real-time demand. “We are using machine-learning technologies to accurately predict demand in a way we think is cutting-edge,” he stated. “The net effect of this is reducing inventory waste.”
Shein is not alone in embracing AI-driven efficiencies. Fast-fashion giants such as H&M and Zara also employ machine learning to analyse sales data, predict trends, and manage inventory more effectively, reducing operational costs. Retail experts remain optimistic about AI’s potential, with a McKinsey report suggesting it could contribute up to $275 billion in operating profits to the apparel, fashion, and luxury sectors within three to five years.
AI is also revolutionising material innovation, identifying sustainable fabrics such as biodegradable textiles. Advanced recycling technologies improve textile sorting, increasing reuse and reducing landfill waste. AI-driven personalisation tools and virtual try-ons help curb returns and surplus stock—an urgent issue, given that 10% to 40% of garments remain unsold annually. In 2023 alone, the industry produced an estimated 2.5 to 5 billion surplus items, largely due to outdated forecast-based models. AI-powered inventory management ensures production aligns with real-time demand, preventing excessive stock.
Manufacturing inefficiencies—such as delays, material waste, and human error—cost the fashion industry millions each year. AI-driven smart factories address these issues through automated pattern-making, precision fabric cutting, and AI-enhanced quality control, improving accuracy while reducing waste and energy consumption.
AI is also making sustainable fashion more accessible. Platforms like TextileGenesis verify ethically sourced materials, while AI-driven fabric analysis helps designers select textiles with a lower environmental impact. Sustainability-focused start-ups benefit from AI-powered solutions that make eco-friendly practices more cost-effective. Additionally, AI-driven virtual assistants and chatbots educate consumers, encouraging informed, sustainable choices.
Recent research supports AI’s role in environmental sustainability. A study by the UNSW Institute for Climate Risk & Response found that AI-driven technologies can help companies assess their carbon footprint and develop strategies for improvement.
“In short, AI will enhance firms’ entire value chains, enabling them to avoid, mitigate, or offset the environmental impacts of their products, services, or processes,” says David Grant, co-author of the study with Shahriar Akter. Grant adds that AI can perform this analysis far more quickly and accurately than humans. “The environmental benefits, particularly in addressing climate change, are significantly greater than what could otherwise be achieved,” he concludes.
As AI advances, its influence on fashion will grow, enhancing efficiency, sustainability, and innovation. By leveraging AI-driven insights, brands can minimise waste, streamline supply chains, and develop eco-conscious designs that align with consumer demand. While challenges persist, AI presents a transformative opportunity to make fashion both smarter and more sustainable, fostering a future where technology and ethical responsibility go hand in hand.
BusinessDay. (2025, February 2). How AI is changing fashion and what it means for entrepreneurs. Businessday NG. https://businessday.ng/opinion/article/how-ai-is-changing-fashion-and-what-it-means-for-entrepreneurs/
Rajvanshi, A. (2024, September 20). How AI could transform Shein, fast fashion for better—and worse. Time. https://time.com/7022660/shein-ai-fast-fashion/
AI-powered sustainability for fashion brands. Lectra. (n.d.). https://www.lectra.com/en/library/ai-powered-sustainability-for-fashion-brands
By AI Fashion Design Assistant, & Name. (2025, January 2). 10 ways fashion ai is Transforming Sustainability in 2025. Refabric. https://blog.refabric.com/fashion-ai-sustainability-2025/
