Gucci Beginning to Integrate AI to Reduce Waste and Cut Costs

The Italian luxury brand, Gucci, is beginning to integrate artificial intelligence within its supply chain and stores to combat waste. Many labels within the fashion industry incur significant environmental and financial costs annually due to the oversupply of products which turns into waste. It is estimated by consultancy company, McKinsey, that the integration of AI could help reduce the amount of forecasting errors by 50%, which could lead to between 20% and 50% in reduction of overall inventory.

This is exactly why Kering is leading the charge for AI integration. Kering, the company that owns Yves Saint Laurent, Balenciaga, and Gucci, plans to use AI to help allocate the proper quantity of goods per store depending on the location. Gucci will be the first to integrate this type of technology within its stores, with Gucci shop assistants being armed with mobile applications to provide real-time information on the store’s inventory, clients’ history, and more. Each data point received could lead to the uncovering of consumer trends within cities, around countries or even throughout the world.

In the age of ‘Big Data’, data collection has revealed patterns and trends once uncoverable that have led to an increase in efficiency and profits. With the luxury fashion industry often lagging behind technologically, this is a positive step forward for Kering and Gucci. With sustainable fashion’s meteoric rise in the last two years, luxury fashions have to keep up or they could be left behind.

Photo Credit: efradera on VisualHunt / CC BY-ND


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