The Effects of Artificial Intelligence on the Fashion Industry—Opportunities and Challenges for Sustainable Transformation

ABSTRACT Artificial intelligence (AI) is crucial in the fashion industry nowadays. It facilitates innovation in design, production, e‐commerce, personalisation and supply chain management, improving efficient operations and providing opportunities to support sustainability. The research aimed to identify the current use of artificial intelligence in the fashion industry and its arrangement and determine to what extent AI is used to support fashion sustainability. Data collection and selection were according to PRISMA guidelines and were retrieved from Scopus and WoS (January 2017–October 2024; n = 82 (from 234 identified items)). Data analysis was performed using six steps of thematic analysis, including topic modelling (in the MAXQDA 24 programme). The identified themes revealed the current effects of AI use in the fashion industry (RQ1): data‐centric design, forecasting using big data, and experience‐oriented services. AI technologies are predominantly utilised in fabric production and B2B distribution. Experience‐focused services are enhanced through precise image searches and chatbot support. Platforms like SaaS, generative fashion, and Science4Fashion enable the creation of new designs. Applications such as Style. Me serve as personal stylists, facilitating customised outfit selection and streamlining the purchasing process. The last theme (RQ2) allowed to establish that sustainable development requires innovation based on AI technology. Despite optimistic forecasts, available solutions are only used to a limited extent. The main barrier is that companies put economic goals above sustainable development goals. Models that combine commercial and environmental perspectives are essential in developing beneficial change strategies. Therefore, it is important to monitor progress in this area.