AI in Fashion: Fueling Overconsumption or Driving Innovation?
Feb 10, 2025
3
min reading
A recent McKinsey report estimates that AI could boost operating profits in the apparel, fashion, and luxury sectors by up to $275 billion within the next three to five years.
This shift goes beyond automation and algorithms, painting a picture of an industry at the cusp of transformation. It's touching every aspect of how we create, consume, and connect through fashion—for better and worse.
We're already witnessing this evolution as fast fashion giants like Shein, Zara, and others embrace AI to predict trends, track customer preferences, and make instant supply chain adjustments to accelerate production.
According to Time magazine, Shein's head of global strategy and corporate affairs revealed that over 5,000 Shein suppliers now have access to an AI software platform. And as we know, fast fashion companies like Shein are major contributors to clothing waste and overconsumption worldwide.
Luxury brands are following the same path, increasingly turning to data-driven design decisions.
While many see AI as a sustainability opportunity—optimizing supply chains, reducing waste, and sourcing sustainable materials—others worry that AI implementation could overshadow the thoughtful, human elements that have historically made fashion a form of creative expression and cultural dialogue.
But, to be clearer, we’re not trying to portrait technology advancements as the villain in fashion's story. Of course, AI has the power to transform sustainability tracking, optimize resource use, and democratize design tools (more of that further in this article).
But it is unquestionable that this current implementation often prioritizes speed over substance, quantity over quality.
Striking the right balance between technological advancement and sustainable, human-centered design is both a challenge and an opportunity. So the real question is: how can AI drive positive change in this landscape?
How AI is being used in fashion
Before diving into the pros and cons of AI in fashion, let's break down how the industry is using it
1. Smarter Shopping Experiences: AI is making customer service faster and more personalized. It helps brands provide instant support and recommend products based on more than just purchase history — even tapping into potential biometric data. Virtual try-ons powered by AI and augmented reality (AR) allow shoppers to see how clothes look on them, creating a more immersive experience.
2. Virtual Models & Imagery: Generative AI allows brands to create visuals without relying on traditional photo shoots, reducing costs and environmental impact. By using existing image data, companies can quickly integrate new products into collections. Some brands even showcase their designs with entirely virtual models and influencers.
3. AI in Design: AI has made its way into the design process too. Advanced algorithms analyze real-time trends to help brands predict what consumers will want next. Generative AI goes further by inspiring new patterns and designs, making it a game-changer for fast fashion, where staying on top of trends is critical.
Yes, AI is—and has already become—a game-changer for fashion. Beyond smarter shopping experiences and virtual models, brands are tapping into its potential for inventory management and supply chain optimization, making operations more efficient and easier to control. This brings undeniable benefits, from reducing waste to streamlining logistics.
But there’s a flip side. When talking about advanced algorithms, it can push production into overdrive, fueling excessively rapid collections and accelerating trend cycles. The result? A greater push toward overconsumption. Let’s break it down.
The dark side of data-driven fashion
AI and technology have undoubtedly unlocked new efficiencies in the fashion industry, but they’ve also amplified a long-lasting issue: overconsumption.
The very algorithms that predict trends and enhance production are fueling a faster, more unsustainable fashion cycle. That’s because, when fast fashion meets AI, the speed at which new trends are created and adopted becomes almost instantaneous.
AI systems gather, analyze, and predict consumer preferences, making it easier than ever for brands to launch collections at lightning speed.
While this may seem beneficial for staying ahead of trends, the reality is grim: excess inventory piles up as trends shift rapidly, leading to financial losses and environmental waste.
The consequences are multifaceted:
Inventory Issues: Rapid trend shifts often result in unsold stock, leading to financial losses for brands and unnecessary waste.
Environmental Impact: The production and disposal of garments contribute significantly to carbon emissions and waste that ends up in landfills.
Privacy Concerns: Fashion trend forecasting powered by AI often involves invasive data collection, raising ethical questions around consumer privacy.
And while AI holds the potential to optimize production and reduce unsold inventory, the reality is that in a consumer-driven market, these tools are more likely to be exploited to drive constant consumption rather than promote sustainability.
The responsible use of AI in fashion : is it possible?
Let’s be honest: abolishing AI in fashion isn’t realistic, effective, or even beneficial. The real challenge is finding balance — recognizing the damage AI can cause while championing tools and companies that leverage it responsibly and ethically. AI doesn’t have to fuel overconsumption or sideline human creativity. When used right, it can help the industry move toward sustainability and efficiency.
AI-driven solutions have incredible potential to:
• Optimize supply chains, reducing waste and improving efficiency.
• Monitor carbon emissions and prioritize sustainable materials.
• Enhance transparency, from ethical sourcing to environmental impact tracking.
At World Collective, we believe technology is changing textile sourcing, and it should be a force for good, helping fashion brands and suppliers build smarter, more coo
That’s why our entire hub is powered by evolving technologies with responsible innovation at its core.
At the heart of this is World Collective’s Marketplace — a digital platform designed to create meaningful connections between brands and suppliers while championing transparency and sustainability.
• For brands: Effortlessly source innovative, sustainable materials from a global market with transparency and reliability in every transaction.
• For suppliers: Gain global exposure, connect with potential clients, and showcase sustainable practices that attract brands seeking ethical and eco-friendly materials.
We’re constantly evolving, and AI is part of our vision for future innovation. Not to accelerate mass production or fuel overconsumption — but to foster stronger connections, build transparent partnerships, and make sourcing more seamless and ethical for everyone.
If technology can be a tool for progress, why not use it for good?
If you want to dive deeper in how technology can revolutionize supply chains, click here!
Join us in driving responsible innovation and reshaping how fashion operates. If you’re a brand or supplier ready to elevate your supply chain, our marketplace is your next step.
