Artificial Intelligence for Fashion and E-commerce. Why now?
Understanding what AI is?
Artificial Intelligence or AI refers to advanced computer systems and algorithms that can learn on its own and perform tasks that were once reserved only for humans. Apart from increased processing power and the latest innovation in the world of Deep Learning/AI, a major factor that helps AI systems make smarter decisions is data, which is way larger and more diverse than ever before.
AI is imperative to a business’s success and companies that embrace AI may get a competitive edge. The potential is limitless right from backend retail operations such as forecasting, capacity planning, catalogue tagging automaton to improving customer experience with advanced search capability and Personalization. In-fact, AI bots can be the next fashion designer or assist in Designing merchandise based on Demand sensing and trends.
Moreover, the use of AI in fashion is also allowing each one of us to find those elusive perfect outfits that suit our body type and fashion preferences. Such AI-enabled clothes and outfits are not only tailored for different occasions and weather, but also to the user’s style, body type, colours, and the latest fashion trends.
Why is it required?
Apart from the competitive advantage it offers, the applications and the impact on Fashion E-commerce is tremendous. With AI, you can not only improve customer experience but also automate a lot of back-end retail processes. For instance, the existing process of tagging catalogue while product listing can be done automatically with AI. Design process can be accelerated with a more robust Trend analysis and Market intelligence churning multiple data points with complex machine learning models. On the consumer end, Visual search and Personalisation can help provide seamless shopping experience and drive more conversion.
The ever-increasing scale and Customer expectation in online fashion retail are impossible to manage without the assistance of Artificial Intelligence and related automated processes. A growing number of companies who have adopted this are raising the bar on service and personalisation, which customers have learned to expect. Predictions are made that by 2025, customers will manage 85% of their relationships with an enterprise without interacting with humans.
Currently, 44% of UK fashion retailers are facing the issue of bankruptcy and lack of technology adoption to improve customer experience could be part of the reason: companies who didn’t find a way to properly implement it are now struggling to be competitive with the ones that did. Researchers suggest that in addition to improving customer’s experience, AI could reduce the workload on fashion designers by as much as 30 percent, leaving fashion experts to do more creative work.
- AI is expected to reach $7.3 billion by 2022 as more businesses onboard automation, chatbot, personalization and analytics solutions, among others.
- Almost 30% of mobile shoppers will abandon their purchase if the shopping experience is not optimized for mobile devices. (Status Labs, 2018)
- 43% of purchases are influenced by personalized recommendations or promotions
- 75% of consumers prefer brands to personalize messaging, offers, and experiences
- 94% of companies see personalisation as critical to current and future success
With ~2 billion Digital buyers globally and pace technology penetration, Customer adoption to Technology such as Artificial Intelligence is out of question. It is intuitive that businesses that are early adopters of Artificial Intelligence will have an upper edge. While it is challenging to build, scale and maintain AI solution in-house, there are startups like Vectorised AI Labs offering these solutions on their SAAS platform. Check our solutions.