As fashion’s reliance on AI deepens — from design and forecasting, to digital clienteling and chatbots — new risks are emerging. The same systems that promise efficiency and personalisation are also expanding the industry’s potential exposure to issues like cyber attacks and costly, misguided inventory forecasting.
McKinsey estimates that generative AI could add up to $275 billion in operating profits to apparel, fashion and luxury within the next three years, but that potential comes at a cost. Nearly three-quarters of organisations say they experienced a confirmed AI-related breach in 2024 — a sharp rise from 67 per cent the year prior — underscoring the urgency for companies to secure their AI systems, according to HiddenLayer’s second annual ‘AI Threat Landscape’ report. Nearly half (45 per cent) of those affected chose not to disclose the incident, citing fears of reputational damage, while highlighting the growing tension between transparency and trust in the age of intelligent systems.
