The fashion industry is increasingly grappling with the implications of artificial intelligence (AI) for design and creativity, revealing a divide between sectors embracing the technology and those proceeding with caution. Retailers focused on affordable clothing are more openly experimenting with AI, while luxury fashion houses remain hesitant due to concerns about preserving the value of human craftsmanship.

Affordable brands have been at the forefront of integrating AI-driven creative processes. For example, H&M’s chief creative officer Jörgen Andersson has publicly acknowledged exploring generative AI to enhance creativity and fashion presentation. The US-based retailer Revolve recently launched a capsule collection entirely designed by AI, signaling a willingness to reimagine creative workflows through machine learning technologies.

In contrast, many luxury fashion houses remain guarded. Nine leading luxury brands declined to publicly discuss their stance on AI integration. Gucci experienced significant online criticism following the release of an AI-generated advertising campaign earlier this year, illustrating the reputational risks associated with the technology. Historically, the luxury sector has been cautious with digital innovations, initially resisting ecommerce to protect its aura of exclusivity.

Despite this hesitance, AI use is growing within luxury design studios, often via commonly available tools such as ChatGPT, Claude, and Google Gemini, alongside specialized platforms like CLO and Fermat. Designers use these systems to generate initial concepts, modify digital prototypes, and accelerate development. Lazaro Hernandez, co-creative director of Loewe, described how younger designers increasingly rely on digital tools including AI to produce lifelike renderings of garments, blurring traditional distinctions between handcraft and automated design.

At the Financial Times’ Business of Luxury summit in May, American designer Thom Browne acknowledged AI’s presence in junior designers’ workflows, emphasizing the importance of embracing technological advancements rather than resisting them. Behind the scenes, large houses are reportedly developing proprietary AI platforms trained on their archival materials to safeguard intellectual property and maintain brand identity.

The rise of AI in fashion raises complex questions about creativity, authorship, and job security. The industry faces an emerging debate over intellectual property rights as AI systems are trained on copyrighted designs, a contentious issue already confronting music and media sectors but not yet widely contested by fashion houses. Laura Weir, chief executive of the British Fashion Council, highlighted concerns about AI potentially disrupting the fashion talent pipeline and eroding creative jobs.

While AI is automating some traditional skills—such as technical sketching—industry experts suggest it also offers opportunities for innovation and efficiency throughout the value chain, including supply chain optimization, merchandising, and marketing. Headhunter Floriane de Saint Pierre noted the tool’s role in enhancing resilience for small and medium-sized enterprises, enabling speed and flexibility previously unattainable without extensive resources.

Luxury’s enduring appeal may lie in the “savoir-faire”—the expert craftsmanship and intimate knowledge that remain difficult to replicate by AI or robotics. Pascal Morand, executive president of the Fédération de la Haute Couture et de la Mode, remains optimistic that traditional methods will coexist alongside AI-driven innovation.

Overall, industry leaders urge a balanced approach, advocating mastery of AI as a complementary tool rather than a replacement for human creativity. As Weir put it, the challenge will be to harness AI intentionally to shape fashion’s future while protecting the essence of artistic craftsmanship.