What: The complexities and challenges of using AI to predict consumer behaviour in the fashion industry.

Why it is important: Experts caution against overreliance on AI for setting initial buys, emphasizing that it may not fully capture the artistry and intuition involved in trend forecasting and creative decision-making.

While AI offers the promise of more accurate forecasting, the emotional and unpredictable nature of fashion purchases presents a significant hurdle.

AI should be seen as a support tool for experienced merchandisers and creative teams, rather than a replacement for human expertise. AI-driven services, such as in-season reorders and pricing optimization, are gaining traction, yet AI-powered demand forecasting is met with scepticism from brands. Many are cautious about relying solely on AI for initial buying decisions, preferring clear, quantifiable assumptions and intuition.

Retailers face the challenge of making accurate predictions about styles, colours, and sizes far in advance, with lead times of up to 45 weeks, and although AI has the potential to provide more precise forecasts than historical methods by considering a multitude of variables, concerns remain about its readiness to entirely replace human decision-making.

Can AI predict what shoppers will buy?