AI in the Fashion Industry is a Growing Problem

06-02-2025
Artificial intelligence (AI) already has a firm presence in many industries, and fashion is no different. AI promises exciting new possibilities, from automating administration-heavy and arduous, manual tasks, to analysing vast datasets with razor-sharp accuracy, the fashion industry is ripe for success with the help of AI.
However, an alarming lack of AI governance across geographies presents a range of risks worth paying attention to. Fashion businesses can no longer afford to ignore the types of threats and scrutiny that unsupervised AI can represent. Proactive steps must therefore be taken to understand the types of dangers it presents.
Exploring Sector-Wide AI Risks
For all of the manufacturing and business improvements AI promises – including accurate eCommerce product recommendations, immersive visual merchandising, content generation, omnichannel shopping and more – it is a technology that’s causing widespread uproar and concern amongst leaders.
Notorious examples of AI-powered deepfake technology proliferation are just the tip of the proverbial iceberg. Deepfakes allow realistic fake videos, audio clips, or images, to be generated, then used by malicious actors to steal identities, spread misinformation, or lure customers into divulging sensitive information. They are often used in calculated phishing or social engineering attempts which are common, as evidenced by the JD Sports customer data hack.
AI technology can also be used to generate highly convincing text or replicas of websites. Often used in conjunction with targeted attempts to compromise customer data, fashion eCommerce sites can be spoofed with relative ease. Couple this with a lack of awareness and cyber hygiene of modern consumers and reputable fashion brands risk losing credibility. Hackers can use AI to autonomously generate code that mirrors an existing website setup, deceiving users into entering login and payment information, after realising that this data has been dispensed to a malicious entity, rather than a trusted brand.
While investing in more robust cyber knowledge and defence solutions – such as enterprise-wide risk assessments, vulnerability scans, and managed detection and response (MDR) – seem like a proactive solution on the surface, the risks and dangers of AI lie much deeper. AI is evolving at such a rate that humans themselves are only aware of a mere microcosm of what it’s capable of, not to mention how it works.
AI tools are rooted in deep learning; it learns through repetition. AI is still error-prone, delivering ‘hallucinations’ (falsified information) regularly, and perpetuating outdated stereotypes or biases. This is why fashion brands should be careful to avoid deploying AI ad nauseam.
The fashion industry relies extensively on online sales channels, digital marketing campaigns, and real-time social media engagement. Many aspects of these processes can undoubtedly be left in the capable hands of AI software, such as data aggregation, generating shipping labels, stock management, account balancing, and more. However, supply chains with offshore manufacturing partners introduce risks that can be hard to detect or control.
Quite often, suppliers – particularly in developing regions – lack digital infrastructure or cyber awareness, and breakdowns in communication between partners can only further this divide. While AI is often used as a way to isolate consumer or supplier queries, requiring human input when issues escalate or need investigation, language barriers often become harder to break down if humans are no longer present.
Understanding How to Use and Integrate AI Responsibly
While it’s easy to look at the AI landscape with pessimism, it’s important to recognise the potential for improvements in the fashion industry.
Fashion businesses should start by auditing where AI can enhance areas of their operations. Whether this is by facilitating internal communications or streamlining business administration, it’s a good place to start by identifying silos on which to build. Integrating AI strategically into very specific areas allows businesses to then adapt and analyse its effectiveness.
Misinformation prevention will be crucial when AI is deployed to create assets like images, text, videos, or marketing material. Fashion brands can benefit by using generative AI platforms to dispense content quickly, but human supervision and oversight is still crucial. If fashion marketers can assess and manage AI responsibly, falsified information and dangerous discourse can be mitigated before it reaches the public domain. By being transparent about the use of AI in any image or content generation, fashion brands are less likely to face public ridicule.
Security is a constant concern, which is why continual supervision and testing to uncover weaknesses is crucial. Fashion employees should be brought up to speed with emerging cyber threats and AI risks, while systems should be bolstered with proper data protection and anti-fraud systems for more widespread detection and containment. Response plans should be prepared in the event of an incident, ensuring that data, systems, assets, and finances are properly protected and backed up.
Government policy and regulation are still needed and will undeniably provide businesses and individuals with more reassurance in an age of growing AI uncertainty. However, companies can act now to better prepare themselves for the future which will see AI grow and scale even further.
Thriving with AI
Regulation is on its way, with a promising future of AI innovation and integration ahead. However, don’t sit on the sidelines waiting for regulatory oversight and government intervention. Acting decisively and strategically now will allow you to thrive with AI’s help. Integrating AI into the areas of your fashion company that need it most is a surefire way to improve efficiency and productivity, while empowering your teams to guide the technology’s continued influence.
Image by Cottonbro Studio – pexels.com