By Savannah Fortis, Vogue Business

Generative artificial intelligence is poised to change how fashion works, but whether that’s good news or bad news might depend on what job you’re doing.

If you’re in control of budgets, AI offers opportunities to cut headcounts or reallocate resources more profitably. However, if you’re starting out in a career, AI could reduce opportunity, particularly in starter roles.

As tasks become faster and easier, brands see an opportunity to shift some manual tasks from humans to machines. First up for streamlining: human-led and often time-consuming roles, such as copywriting, coding, customer service, clienteling, photo editing and 3D design and illustration.

Brands are already utilising the power of AI to cut production and operations costs. In May, LVMH awarded its 2024 Innovation Award to Chinese startup FancyTech, a platform that is collaborating with LVMH brands. FancyTech uses generative artificial intelligence to produce videos from 3D product models and creative briefs. A separate prize went to Blng, an LA-based company that uses AI to convert sketches of jewellery into visualisations. Meanwhile, AI investment from the likes of LVMH-owned Sephora is focused on improving chatbots to supercharge the customer experience online.

The Estée Lauder Companies is using generative AI to measure customer sentiment, aid in writing copy and make product recommendations; a new innovation lab, with Microsoft, is developing tools that help internal teams identify and respond to trends, such as an internal chatbot that helps brands source products that identify specific problems. Revolve has tested it for generating new product designs, while Adore Me is enabling customers to customise their own bra and panty sets. Adore Me also uses generative AI to inform SEO-optimised product descriptions, but VP of strategy Ranjan Roy says that, ultimately, any copy customers end up seeing is approved and finalised by human employees.

AI provides opportunities in the fashion and retail sectors across multiple categories, according to Lamees Butt, CEO and founder of Riser, an AI-powered career matchmaking app for brands — “from the way trends are consumed and created to the retail customer journey”. It will “profoundly impact” the workforce, particularly in roles related to design, marketing and customer service, Butt says.

Some businesses have moved fast to maximise the opportunity. Swedish e-commerce payment company Klarna says AI has contributed to 37 per cent of its cost savings, equating to $10 million annually, for tasks related to external marketing, image production and general company efficiency.

A study from the International Monetary Fund (IMF), released in January, suggests that almost 40 per cent of employment worldwide is exposed to AI. Advanced economies are most exposed, while also being better positioned to leverage its benefits.

Roles such as retail specialists and store managers will “take the heat more than others”, says Adam Jackson, founder and CEO of AI recruiting app Braintrust, but he sees change everywhere. “AI is automating tasks like trend prediction, inventory management, and even churning out creative clothing patterns.”

Talented employees or applicants need not worry, he assures. “Many retailers are deploying AI to their advantage, focusing on hiring the right talent, as opposed to collecting the most résumés,” he says.

The ability to work with AI is becoming an essential skill to add to the average CV. Fashion job boards are introducing roles that require AI competency, such as data governance managers at LVMH or data scientists at Estée Lauder Companies — roles that require candidates to be comfortable with the “implementation of AI capabilities”.

Mindful implementation

As fashion and retail hurries to implement generative AI solutions, experts warn of the risks of moving too fast.

For all its potential, AI could prompt a knee-jerk response from overexcited business leaders. Partha Gopalakrishnan, president of Brane Group, a consultancy specialising in AI solutions, and a former senior executive at Infosys, has noted “a spate of layoffs, teething errors in retailers’ systems and even big firms ceasing working with creative agencies and freelancers”.

Gopalakrishnan is concerned that the human factor may be neglected by fashion executives prioritising quick-win opportunities. “Fashion and retail executives need to take a step back and rethink their approach. [The industry] needs to invest in talent, culture and training first, and then it can start to fold AI into its operations,” he says.

He suggests that retailers should be looking to employ “highly adaptable candidates” with the ability to unlearn and relearn, complemented by the introduction of comprehensive internal training and upskilling.

In the interim, some governments are stepping in to alleviate concerns around the impact. Last autumn, for example, the US Biden administration issued an executive order calling for support when it comes to job training, with hopes to mitigate job displacement.

Some companies, already in this mindset, have invested in training programmes to help employees gain AI and data analysis skills. Nike, for example, deploys AI-powered tools that provide its senior leadership team with access to custom analytics tailored to support decision-making. Tapestry-owned Coach has an internal dashboard that provides relevant data to all employees, enabling staff to understand trends and make more informed recommendations. German-based Hugo Boss has worked with external consultancy Metyis to build out what it describes as a “dedicated data science campus”.

Upskilling

Momentum is building in upskilling teams. Estée Lauder and Microsoft have collaborated on creating an AI innovation lab to upskill Estée Lauder employees. The company is able to use Microsoft’s tech expertise to develop in-house solutions that are specific to its business, and therefore didn’t require additional employees to build out these efforts.

Altava Group, a fashion-tech company that emerged from LVMH’s La Maison des Startups business accelerator, has launched a proprietary generative AI tool for accessible 3D fashion design. The business is upskilling its team and hiring employees with specific skill sets relating to machine learning and AI, says founder and CEO Andy Ku. “We are upskilling our team in distributed computing, blockchain and data learning — considering [the development of] our AI engine and our [new] target vertical, which includes 3D asset and item creation using data from our experience in luxury fashion use cases.”

Riser’s Butt advises brands to use AI tools that keep human connection and creativity — known to be key drivers of success — front of mind. “People and purpose are the most powerful parts of any brand,” says Butt. “The companies that will win are those open to embracing new solutions that blend technology with a human-centric approach, ensuring that AI enhances — rather than replaces — the unique value that only people can bring.”