Join the INSIDERS

Get the best of 20F7 delivered to your inbox monthly

Thank you for subscribing to the newsletter.

Oops. Something went wrong. Please try again later.

AI in the Closet: How Machine Learning is Redefining Fashion Design and Retail

From predictive trend analysis to AI-powered shopping, the fashion industry is going algorithmic. Here’s how data, design, and digital innovation are shaping the future of style.

From predictive trend forecasting to hyper-personalized shopping, artificial intelligence is transforming how fashion is designed, produced, and sold. One algorithm at a time.

THE ALGORITHMIC REVOLUTION

Artificial intelligence is no longer just backstage; it’s taking a starring role in the fashion industry. According to McKinsey’s State of Fashion 2025 report, over 60% of fashion executives say AI has become a “core enabler” of business transformation, with investment in AI tools expected to grow by threefold by 2027.

Brands like Tommy Hilfiger, H&M, and Levi’s are already using machine learning to predict trends, optimize inventory, and even co-design collections. Tommy Hilfiger’s “Reimagine Retail” initiative, in partnership with IBM and the Fashion Institute of Technology, uses AI to analyze thousands of runway images and social media posts; identifying which silhouettes, colors, and materials are gaining traction before they peak.

DESIGN MEETS DATA

Designers, too, are experimenting with algorithmic creativity. Iris van Herpen uses computational modeling to sculpt her ethereal haute couture, while The Fabricant, a digital-only fashion house, employs generative AI to create garments that exist solely in virtual space.

Meanwhile, platforms like Heuritech use image recognition to forecast upcoming micro-trends with over 90% accuracy, scanning millions of social media images daily to provide data-backed insights for brands. This fusion of data and design isn’t replacing creativity, it’s amplifying it. Designers get to focus more on storytelling and innovation, leaving AI to handle the analytics.

RETAIL'S SMART SHIFT

On the retail side, AI is redefining how we shop. Personalization algorithms now account for 35% of online sales in fashion e-commerce, according to Salesforce. Stitch Fix famously built its entire business model around AI-driven styling recommendations, combining machine learning with human stylists for hyper-personalized curation.

Luxury brands are catching on, too: Farfetch uses predictive analytics to match users with pieces based on browsing behavior, while Zalando integrates AI to reduce returns through better sizing recommendations, a move that saves millions annually and improves sustainability outcomes.

ETHICS AND AESTHETICS

But the algorithm comes with its own paradox. As AI takes over more of fashion’s creative and logistical processes, questions around authorship, diversity, and data ethics grow louder. Can an algorithm have taste? Who owns AI-generated designs?

Progressive brands are addressing this through transparency and human-AI collaboration. The future, it seems, is neither human nor machine, but a new hybrid of both.

Join the Club

Like this story? You’ll love our monthly newsletter.

Thank you for subscribing to the newsletter.

Oops. Something went wrong. Please try again later.