FashionTechnology

Report: Generative AI could add $275 billion to the apparel, fashion, luxury sectors

According to McKinsey & Company, 'Generative AI in Fashion' report suggests generative AI could add, conservatively, $150 billion and up to $275 billion to the apparel, fashion, and luxury sectors' operating profits in the next three to five years.

Published: Mar 29, 2024 9:38 AM

By Jeanel Alvarado

FashionTechnology

Add RETAILBOSS as Preferred Source

FashionTechnology

Report: Generative AI could add $275 billion to the apparel, fashion, luxury sectors

According to McKinsey & Company, ‘Generative AI in Fashion’ report suggests generative AI could add, conservatively, $150 billion and up to $275 billion to the apparel, fashion, and luxury sectors’ operating profits in the next three to five years. This number may seem incredulous, but generative AI possesses immense capabilities to streamline design, predict trends, personalize customer experiences and optimize supply chain operations.

Generative algorithms can churn out thousands of unique product designs in seconds, allowing companies to rapidly validate and test new concepts. AI can also help forecast demand more accurately, reducing overproduction and improving inventory management.

Key Findings and Statistics: Generative AI is poised to transform the entire fashion ecosystem, from product creation to supply chain logistics and retail operations.

According to the McKinsey report, 34% of fashion executives are already leveraging generative AI for marketing and copywriting purposes, while 28% are utilizing it for design and product development.

The technology can significantly enhance the product development process by enabling designers to experiment with various styles and create unique pieces that stand out in the highly competitive fashion landscape…

Members-only article

Unlock the rest of this story

Join free to keep reading RetailBoss fashion coverage, industry analysis, and market intelligence.

Company

Account name Used publicly if you comment. We encourage your real first name.

Password

Send me RetailBoss newsletter emails through Substack. I can unsubscribe anytime. Confirm that I want to create a free RetailBoss account.

Free access. No credit card required. Your account is created after you verify your email.

RetailBoss is an independent global news publication and business insights platform built for executives, founders, operators, analysts, marketers, investors, and brand leaders. Our reporting covers the retail shifts across luxury, fashion, beauty, technology and marketing strategy.

Since: 2011
Audience: 50 Million+
Coverage: Global Markets

Our editorial stance

We prioritize news value, evidence, attribution, and practical relevance to retail decision-makers. Sponsored work is identified, and editorial coverage is kept distinct from commercial partnerships.

Top 10 Brands Expanding into the US in 2026

Report: Generative AI could add $275 billion to the apparel, fashion, luxury sectors

According to McKinsey & Company, 'Generative AI in Fashion' report suggests generative AI could add, conservatively, $150 billion and up to $275 billion to the apparel, fashion, and luxury sectors' operating profits in the next three to five years.

Unlock the rest of this story

More from Fashion

FRED Connects Its 90-Year Heritage With a New Chapter in High Jewelry

Stone Island Extends Its Frieze Partnership With Support for Focus Galleries in Seoul

Sadie Sink Fronts Calvin Klein’s Fall Denim Campaign

Nicole Kidman Brings ERDEM Pre-Spring 2027 to a Practical Magic 2 Screening in Sydney

Recommended Articles

Tory Burch Brings Its Resort Rosette Technique to Song Yuqi’s Custom Stage Gown

Louis Vuitton’s Dolomites Classic Run Takes Its Travel Story Through the Italian Alps

Naomi Osaka Brings Modular Thom Browne Tailoring to Her US Open Entrance

Nykaa Fashion LUXE Pairs Global Brand Access With Concierge Services in India

Polo Ralph Lauren Builds Fall 2026 Around Layered Outerwear

Helly Hansen Targets More Than $1.1 Billion in Revenue by 2030

Tommy Hilfiger Takes Travis Kelce to The Plaza for Fall Campaign

Torrid Raises Outlook for Tariff Refunds as Quarterly Sales Fall 11.8%

What are you looking for?

Start exploring

Unlock the rest of this story

More from Fashion

Recommended Articles

Sign up for RetailBoss Daily Newsletter