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Disruptive technologies in the workplace generally fall into three categories: those that enhance existing skills while creating new ones, those that replace skills while reducing the need for others, and those that fall somewhere in between. So where does generative artificial intelligence, one of the most talked-about technologies of 2023, fit in? For creative teams in the fashion industry, the year ahead may help find the answer.
Gen AI is an algorithm that can be pre-trained on large amounts of data, such as text, images, and code, and often fine-tuned with other company data to create new, complex content. 2023 was a breakout year for ChatGPT as powerful new tools entered the market. By January, two months after launch, ChatGPT had reached an estimated 100 million users, a record growth rate at the time. Since then, multiple platforms and tools have entered the market, and a dizzying number of startups are looking to leverage these, while strong open source alternatives are challenging the proprietary model.
While the technology is still in its infancy across many industries, its adoption is accelerating. If it continues on this trajectory, it could become one of the most transformative technologies for the fashion industry in a long time. Early experiments are off to a promising start, but as use cases move beyond one-off projects and become embedded in the fashion value chain, the transformative power of Gen AI will become more apparent.
The overall economic impact of Generation AI on the industry is potentially substantial: according to a recent McKinsey analysis, up to a quarter of the value is expected to come from use cases in the design and product development phase of the value chain.
It’s no wonder that Generation AI is catching the attention of industry executives: the BoF-McKinsey State of Fashion 2024 survey of fashion executives globally found that 73% of respondents said Generation AI will be a key priority for their organization in 2024. But while many companies are experimenting with the technology, only 28% have tried it in their designs or products, suggesting fashion companies are yet to see its value in the creative process.
It’s natural to be cautious. The technology could impact work and workflows. The fashion industry has also seen its fair share of tech fevers that quickly faded, especially the metaverse. But based on the rate of progress and investment, Generation AI is likely to offer a different story. The technology has more practical uses than the metaverse, making it more attractive to companies and investors. Equity investments in startups focused on Generation AI have surged in 2023, reaching $14.1 billion in the first half alone. This is a significant increase compared to $3.5 billion in 2021 and $2.5 billion in 2022. The surge was due in large part to Microsoft’s announcement of a $10 billion multi-year deal with OpenAI, the research institute behind ChatGPT, in January. Later this year, Amazon announced a $4 billion investment in artificial intelligence startup Anthropic, further boosting investment in Generation AI in 2023.
Various Applications
Part of Gen AI’s potential lies in the variety of tasks it can be applied to, and the fashion industry has already begun to adopt AI in some concrete ways, but so far the focus has been on one-off use cases with clear benefits in terms of cost, efficiency and customer experience, rather than those with the potential for wider industry-wide disruption.
Online shopping assistance is one area where AI is making waves. Online retailer Zalando announced that it will be releasing a beta version of its ChatGPT-based natural language shopping assistant in spring 2023, allowing site visitors to ask questions and get answers, as well as receive customized product recommendations. Kering, Mercari, and Shopify are similarly deploying AI chatbots.
Brands using the technology to write product descriptions for their sites include sneaker and streetwear retailer Snipes and lingerie company Adore Me, which was recently acquired by Victoria’s Secret. Meanwhile, Shopify has introduced its gen-AI writing assistant for retailers.
Other brands are also starting to explore AI tools for one-off creative and marketing projects. Ganni used the technology for its Spring/Summer 2024 runway show, creating an installation where guests could ask questions and receive answers that reflected Ganni’s perspective. Luxury brand Casablanca partnered with AI artists to create a campaign for its Spring/Summer 2023 collection, using image generator Midjourney. Casablanca creative director Charaf Tajer said it took human talent and creativity to create the colorful, stylized campaign, set against the backdrop of Mexico’s desert landscapes. But he also acknowledged efficiencies, such as avoiding all the planning and cost of an in-person photoshoot.
Intentionally
Specific gen AI deployments, like those at Zalando and Casablanca, have captured the interest of both the industry and consumers. But the technology has yet to be systematically scaled beyond pilot projects. Ultimately, the greatest value may lie in using gen AI in an end-to-end way that enables and enhances creativity.
Use cases may vary depending on the industry segment. In fast fashion, Gen AI accelerates the design process, increasing agility from trend detection to product development and leveraging analytical data to rapidly create new designs at scale. Meanwhile, in the luxury industry, Gen AI adds a new medium to designers’ repertoire, allowing them to rapidly iterate, compile mood boards from various sources, and curate the output, helping designers with less technical skills to visualize concepts. The unexpected results generated by AI tools can even inspire.
Fashion brands Collina Strada and Elliot Emil have both utilised the field to create their Spring/Summer 2024 collections. Both brands fed images of past looks into the Generation AI tool to generate new designs that could be improved with text prompts. Online retailer Revolve has also used the technology for a series of eye-catching, colourful signage and launched a limited-edition capsule collection using garments from the campaign. Further experiments are underway. Meanwhile, Spanish brand Desigual has launched an on-demand collection designed using the AI tool.
Companies developing generational AI software for fashion say the technology can cut days of manual work down to hours or even seconds. AiDA, short for AI-based interactive design assistant, can reportedly create 12 fashion templates in under 10 seconds. The system uploads sketches, materials and color palettes to a virtual mood board with the help of tagging tools to speed up product searches. AiDA then creates templates that designers can tweak and expand. Cala, a fashion supply chain interface that incorporates generational AI into its design tools, can help designers create more than 100 sketches in a day, according to co-founder Andrew Wyatt.
Curation is key
In the fashion industry, human skills and creativity are often key to brand differentiation. Rather than diluting them, Gen AI, used properly, can free up designers to focus on creative tasks rather than manual tasks. Human designers will continue to play an important role, but Gen AI can shift the designer’s role towards curation. This potential must be clearly communicated to creatives to ensure the technology is adopted without diminishing the designer’s role.
As more companies adopt Gen AI in the fashion industry and the technology evolves, it will require more than a superficial understanding of its role in enhancing and unleashing creativity. For companies, the exciting possibility is that they can create their own Gen AI models that can infuse their brand DNA throughout the design process, rather than relying on the generic output of an image generator. For creators, success will depend on the support and infrastructure of an ecosystem that allows them to move from manual creators to true creative curators. If implemented effectively, technology can benefit and amplify the creative process, augmenting human capabilities while preserving the artistic skills and knowledge of designers. Ultimately, human-centered innovation will be the most important use of AI, experts say.
This article first appeared in “The State of Fashion 2024,” an in-depth report on the global fashion industry, jointly published by BoF and McKinsey & Company.
