Looking ahead, the global market size for generative AI is expected to surpass $17 billion in 2024. Despite concerns about AI and data privacy, the industry is expected to continue embracing the technology, with it predicted to significantly change in-store experiences. Tools offering sizing and styling recommendations are already influencing the consumer store shopping experience, but this is seen as just the beginning.
Key takeaways:
- Generative AI is increasingly being adopted by retailers, with companies such as eBay using it to help sellers create stronger product descriptions, and WHP Global using it to produce consumer-facing advertisements and product photos.
- AI "hallucinations", or factually inaccurate outputs, can actually be beneficial in certain contexts, such as inspiring designers at Fossil and Shopify.
- AI is expected to significantly impact the fashion industry in 2024, with fundamental AI systems that power capabilities like pricing, inventory management, and personalization being at the forefront for retailers.
- Despite concerns about AI and data privacy, legislation is not expected to dampen the retail industry's appetite for AI, with tools offering sizing and styling recommendations already beginning to influence the consumer store shopping experience.