Global analysis and forecasts
The global artificial intelligence in fashion market accounted for US$ 270.0 million in 2018 and is expected to grow at a CAGR of 36.9% over the forecast period 2019-2027, to account for US$ 4,391.7 million in 2027.
Driving factors such as availability of massive amount of data due to increasing proliferation of digital services across the globe, and real time consumer behavior insights and increased operational efficiency are driving the adoption of AI in fashion industry, will drive the market during the forecast period and have a high impact in the short term. However, factors such as concerns related to data privacy and security is anticipated to hinder the market growth in the coming years.
AI integration in fashion plays a crucial role in sales, marketing, and customer-focused purposes. Initial adopters point toward the key impacts of technology in improving customer experience and decent growth in company revenue.
Elevated customer experience helps the retailer to crack entirely new tactics of customer engagement and communication. With AI integration, the retailers can precisely spot the customers’ expected needs at precise times and offer the appropriate product to gain a competitive advantage.
Some of the past initiatives taken in the fashion industry sector which has revolutionized the use of AI in the sector are North Face leveraging IBM Watson’s ML technology to recommend more personalized apparel to the customers. Further, eBay’s AI integration helps their sellers sell more by better inventory management and pricing recommendations.
Also, several fashion brands are leveraging chatbot to improve the customer experience; Tommy Hilfiger’s Facebook Messenger chatbot offers consumers a custom-made and interactive shopping experience than customary online shopping. Besides, Sephora, Amazon, Target, ASOS, Stitch Fix, and Olay are other renowned fashion industry names in the list who have already integrated the AI solution to boost their sales and marketing strategy.