How AI is Transforming the Retail Industry

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It’s not the future—it’s happening now.

Retailers and D2C brands that embrace AI are outpacing competitors, creating stunning visuals, forecasting inventory, and even safeguarding their designs. If you’re not using AI yet, ask yourself: Are you leaving money on the table?

Let’s explore how two different approaches to AI integration for fashion brands highlight game-changing tools and strategies you can start using today.

1. The AI Edge: Tools That Redefine Creativity and Efficiency

Retail has always been a blend of art and business. Today, AI is helping brands excel in both. From automating photography to forecasting demand, these tools don’t just streamline operations—they elevate your brand’s creativity and profitability.

Here are five standout tools having a big impact on the industry today:

How AI is Transforming the Retail Industry Tezeract

A. YesPlz: Stunning Visuals at Scale

Gone are the days of costly photoshoots. YesPlz lets you create high-definition product visuals, lookbooks, and marketing assets with just one click. High-quality imagery doesn’t just sell products; it builds trust.

B. NewArc.ai: From Sketches to Reality

Designers, imagine this: you upload a rough sketch, and within seconds, AI transforms it into a photorealistic design. You can test materials, colors, and textures before spending a dime on prototypes.

C. The New Black: Precision in Product Discovery

What if your product recommendations were as nuanced as your designs? The New Black uses AI to analyze patterns, colors, and textures, creating campaigns that truly resonate with your audience.

D. Inventory Planner: Never Over or Under-Stock Again

With AI analyzing 200+ data points per SKU, Inventory Planner ensures that your shelves are stocked just right. Avoid the billion-dollar mistakes of overstocking (like ASOS) or stockouts that drive customers away.

E. Dupe Killer: Protect What’s Yours

AI doesn’t just create—it defends. Dupe Killer scans the web for knock-offs, ensuring your designs remain exclusive.

2. Turning Tools Into Transformation: Making AI Work for Your Brand

AI tools are powerful, but their real value lies in how you use them. The secret? Focus on solutions, not just the technology.

For AI to truly transform your business, it must align with your unique challenges and goals. Let’s look at a few common hurdles fashion brands face—and how AI turns them into opportunities:

Struggling with high production costs for visuals?

Lost sales due to stock mismanagement?

Worried about knock-offs diluting your brand’s uniqueness?

Successful brands don’t just adopt AI—they integrate it as a strategic partner to solve real business problems. It’s not about having the latest tech; it’s about creating measurable impact

3. Unique Examples Of How Retailers and Brands Are Using AI To Their Benefit

How AI is Transforming the Retail Industry Tezeract

H&M allows their consumers to interact with chatbots on messenger’s. It enables the consumer to select from filters, recommendations, and style preferences and set the fashion brand ahead of its competitors even in the year 2016.

As said by H&M Effective inventory management affects more than the company’s bottom line. The company has started using AI in it supply chain, making them more sustainable and waste-proof than ever. It will also help H&M meet its sustainability goals: by reducing waste, the company will reduce its environmental impact.

In 2019, Gucci introduced virtual try on for its Ace sneakers. To use the feature, users point their phone’s camera at their feet and select a shoe style. The app then overlays a virtual image of the sneakers on their feet. This allows users to see how the shoes look and fit before they buy them.

Uniqlo uses AI-powered UMood kiosks to measure customer’s reaction to certain products. And uses the brain signals to recommend clothes that customers are likely to like. The kiosks give the customers personalized recommendations.

Zara uses robots to streamline the order pickup process. Customers enter a pickup code and the robot retrieves their order from the warehouse and delivers it to a drop box. This reduces wait times and improves customer satisfaction.

American Eagle is creating interactive fitting rooms where customers can scan items, see what’s in stock, and have items delivered to the fitting room. The technology also makes personalized product recommendations.

If you are looking to ind ways o how AI can help your retail business or ave an idea of a custom AI tool, I suggest you to book a $1000 strategy session with one of our AI consultants here – https://30-minute-strategy-session.tezeract.ai/

P.S: I would like to know, If you are already using any AI tools, which tool has made the biggest impact on your brand?

Mahtab Fatima

Mahtab Fatima

Digital Marketing Manager
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