Last week, Shoosmiths hosted an event by The Fashion Network titled ‘AI in Fashion Retail: Mastering the Future of the Style business’. During this event we heard from fashion industry leaders on how the retail sector is seeking to revolutionise their businesses using cutting-edge artificial intelligence (AI) technologies.

Here are our key takeaways:

Navigating the nexus of fashion and AI

In this session featuring Shoosmiths AI lead and partner Alex Kirkhope and Dr Farag Edgheim, a Senior Lecturer in Digital Marketing Communications, the dynamic relationship between technology and fashion was discussed, highlighting the integration of AI as a transformative technology. Acknowledging AI's potential to foster inclusivity, effectiveness, and personalisation in the fashion industry, businesses grapple with the challenge of building public trust. This trust is foundational to overcoming apprehensions about AI, particularly concerns regarding its impact on creativity, job security, and resistance to change, especially among older demographics.

The intersection of AI and fashion also presents crucial ethical considerations. As companies navigate questions of intellectual property rights and copyright issues, the industry grapples with the delicate balance between innovation and ethical use of AI. Training employees to harness AI responsibly becomes imperative in the absence of established legislation on ethical guidelines. While AI holds the promise of revolutionising the fashion retail landscape by addressing diverse applications, including design and marketing, supply chains and personalising customer experience, the industry's journey forward necessitates a careful navigation of challenges and a commitment to ethical integration.

Unlocking efficiency

Speakers from this session included Katrina Urwin a Consultant CMO, Glyn Powditch Co-Founder of Dream Agility and Ken Price CEO & Investor from Blakemill Ltd. They shared their insights on supply chain optimisation and the impact of AI on the interaction of returns within the retail industry. While Google is leveraging AI to boost revenues, concerns were raised about the reliability of data, with automation leading to potential inaccuracies in decision-making. The need for collaboration and unified objectives across departments was emphasised, particularly in sharing data for AI to effectively optimise technology and enhance customer experiences, such as in virtual fitting rooms. Challenges included the requirement for training on new technologies and the potential clash between AI precision and the aspirational nature of fashion.

They also delved into the broader landscape of AI and machine learning, emphasising the importance of clear prompts and unified objectives for effective implementation. The discussion extended to forecasting demand, where AI's limitations in predicting human behaviour were highlighted. While AI excels at analysing historical data, forecasting requires human interpretation of trends and customer preferences. The session concluded with a look towards the future, envisioning AI's role in design and creation but acknowledging the enduring importance of human emotion and creativity in the field of art and fashion.

AI revolutionising the online customer experience

This session saw speakers from the eComplete Group, Salesfire and Science in Sport delve into the growing importance of regular content creation in the current landscape, highlighting AI's role in assisting but stressing the crucial need for human input. The session extended to the personalisation of the shopping experience, spotlighting the challenge of driving traffic to websites and the subsequent importance of tailoring the site to individual consumers. Insights were shared on addressing abandoned checkouts, with a focus on understanding customer profiles and improving the overall experience, although the current approach is less AI-based, particularly for distinguishing between 'unknown' and 'known' visitors.

The conversation expanded to the technologies businesses are currently working with, pointing the optimisation of existing systems and the integration of AI in line with business objectives. The importance of simplicity and usability in platforms, such as Shopify, was underscored. Virtual assistants, chatbots, and tools leveraging base imagery for events were highlighted as the future of ecommerce. The use of product overlaying for recommendations and personalisation was discussed as a means to enhance the customer journey. While AI was acknowledged as crucial for brand awareness and search engine results, the talk concluded with a cautionary note – AI is not a universal solution, and businesses should invest with a clear understanding of their objectives, using AI to complement existing processes rather than relying on it as a standalone solution.

Horizon scanning

The session moderated by Shoosmiths senior associate Melissa Gulcimen, underscored the evolving preferences of Generation Z, highlighting their continued interest in physical stores and the rise of experiential retail through pop-up shops. Other panellists included Shoosmiths principal associate Christian Cockcroft, and reps from Salesfire and Science in Sport who provided examples like Gymshark, originally a digital business, which showcased the shift in the retail landscape, adapting to the demand for physical shopping experiences such as their recently opened store in London. Despite the increasing role of AI, the importance of understanding the customer was re-emphasised, acknowledging that consumer power is shifting and in-person experiences remain crucial for creating an experiential connection with the customer.

Concerns were raised about the potential drawbacks of AI in customer interactions, particularly as language processing systems become more sentient, leading to ambiguity about whether one is interacting with a real person or an AI system, possibly causing alienation in the community. Legislative changes, such as the Digital Markets Act, were discussed for their impact on businesses and consumers, introducing restrictions on data sharing across platforms and reinforcing consumer ownership of ad measurement data.

The session also explored the concept of AI-driven personal shopper experiences, highlighting the potential challenge of convincing customers to pay for such services when zero-cost options are preferred. The discussion concluded with a forward-looking perspective on the future of retail, envisioning a seamless and immediate purchasing experience for most products, while luxury brands continue to focus on exclusivity and unique in-store offerings to convey their brand positioning. Ultimately, the evolving definition of a "retailer" in the next 3-10 years was seen as contingent on the business's desired brand image and customer experience.

Conclusion

The event provided explored the various ways AI is transforming the fashion industry, from design and marketing to supply chain and customer experience. The speakers discussed the benefits of AI in enhancing efficiency, personalisation, and innovation, while also acknowledging how AI can help businesses optimise their systems and drive traffic to their websites. They also outlined the limitations and risks of AI, such as data reliability, ethical issues, and customer trust, acknowledging the need for human input and creativity in the field of fashion, as well as the importance of understanding the customer’s preferences and behaviour.