Executive Memo | Everything Fashion Executives Need to Know About AI

The next technological era has arrived.

Analysts and tech futurists tend to align in the belief that, like the internet and social media before it, artificial intelligence is poised to reshape operations across fashion companies. It isn’t just one or two departments it will touch; it’s all of them, as AI influences everything from how companies create and market their products to how they manage their workforces and interact with customers.

To adapt to this new moment, executives across fashion organisations must have a clear grasp of AI’s capabilities and how to apply them. But while many are aware of the latest AI buzzwords, too many are making decisions without fully understanding how the technology works, what it’s actually capable of and how it’s evolving for the future. Without these fundamentals, they’re making choices that can involve significant upfront costs without a clear understanding of return on investments. One 2025 study by an MIT-based initiative that looked at companies’ generative-AI projects found the vast majority were deriving no value from them.

This report gives fashion executives guidance on how to think about AI so they can make decisions effectively. It provides a simplified walk through of the core concepts they need to know, as well as what their strengths and limitations are. Members of the C-suite and beyond need to be versed in the fundamentals, so they know when and how to make AI work for them.

In this memo to BoF’s Executive Members, learn more about:

• The various forms of AI, from machine learning to large language models
• How these AI techniques are being applied in fashion
• The emerging areas such as AI agents executives need to understand for the future