The Integration of Artificial Intelligence in Digital Marketing

Strategies for the Apparel Industry

Yajing Yang

BASIS International School Hangzhou, Hangzhou, 310000, China

Keywords: Artifical Intelligence, Digital Marketing, Apparel Industry, Fashion Industry.

Abstract: The apparel industry is an increasingly competitive and rapidly expanding market. Businesses in this market

are all facing the need to differentiate themselves in order to gain a larger market share. With recent

technological advancements, the apparel industry has acquired new digital marketing tools, including artificial

intelligence. This paper will explore the integration of AI in digital marketing strategies for the apparel

industry, focusing on three main applications: augmented reality, AI-powered recommendation systems, and

AI-driven chatbots. On the one hand, AI-driven marketing tools can effectively enhance customer engagement.

However, AI could threaten customer data privacy and spread misinformation. To address these challenges

while embracing the benefits of AI, this paper suggests businesses and policymakers establish clear AI usage

guidelines, utilize AI for sustainable purposes, and expand ethical AI use knowledge. Through a well-rounded

understanding of AI, marketers can ensure its responsible and effective use in the future of digital marketing.

1 INTRODUCTION

In 2024, the global total revenue of the apparel market

achieved 1.79 trillion dollars and is projected to

continue to grow and reach around 2.04 trillion

dollars by 2029 (Statista, 2025). The apparel industry

is a huge market consisting of hundreds of thousands

of brands, from family-run tailor shops to global

leading companies like Nike. This vast market size

facilitated diversification and specialization, causing

it to expand at an unparalleled pace. Driven by

advancements in technologies and rapid changes in

consumer preferences, the fashion industry

experienced a significant transformation in the digital

era (Akhtar, Watanabe, Tou, & Neittaanmäki, 2022).

With the emergence of different social media

platforms, information on fashion trends has become

more accessible than ever before. Businesses in the

apparel industry, therefore, have to quickly adopt

digital marketing strategies to gain competitive

advantages and effectively target their potential

customers. The benefits of utilizing digital marketing

strategies for fashion brands include raising brand

awareness for a large pool of audiences, enhancing

brand reputation, and starting trends that increase the

popularity of their own products (Rathnayaka, 2018).

These benefits also encourage an increased amount of

apparel businesses, regardless of their size, to employ

digital marketing tools to maximize their influence

and profit. Among the different digital marketing

tools, one that has the potential to cause another

transformation in the apparel industry is artificial

intelligence.

Artificial intelligence trains computers to

understand and mimic human behaviors (Haleem,

2022). The emergence of artificial intelligence has

been a game-changer in shaping digital marketing.

While transitional marketing strategies, such as

television advertisements, depend on generalized

information that targets a huge group of audiences, AI

intelligence allows companies to deliver personalized

content. Because of the AI algorithm’s ability to

collect a vast amount of data during a short period of

time, AI aids marketers by efficiently generating

content to target customers and evaluate the most

suitable channel (Haleem, 2022). Not only can AI

expand businesses’ access to target customers’

information, but it also allows them to analyze the

performance of their competitors and thus achieve a

competitive advantage (Haleem, 2022). As a result, it

is unsurprising that AI has become an essential part

of marketers’ toolbox. In fact, a survey done by the

Conference Board suggests that 87% of marketers

have used AI tools, and 68% of marketers frequently

use AI in their daily work (The Conference Board,

2023).

278

Yang, Y.

The Integration of Artiﬁcial Intelligence in Digital Marketing Strategies for the Apparel Industry.

DOI: 10.5220/0013990000004916

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Public Relations and Media Communication (PRMC 2025), pages 278-283

ISBN: 978-989-758-778-8

The growing importance of artificial intelligence

calls for the need to examine how it is reshaping the

apparel industry. This paper will examine the

integration of AI in the marketing strategies of the

apparel industry and analyze its positive and negative

implications to businesses as well as customers. It is

only through embracing AI-driven innovation and

establishing ethical guidelines by policymakers and

businesses that the benefit of AI can be maximized

while addressing its challenges.

2 THE APPLICATION OF AI IN

MARKETING FOR THE

APPAREL INDUSTRY

2.1 Augmented Reality

Augmented reality, or AR, is a computer technology

that combines digital materials with physical objects

and environments to improve customers’ experience

(Du, Liu, & Wang, 2022). Although AR can be used

without the integration of AI, combining AI with AR

can significantly enhance customers’ immersive

experiences (Balushi, Al Jabri, Palarimath, Maran,

Thenmozhi, & Balakumar, 2024). As an effective

marketing tool, AR attracts customers’ attention by

allowing them to digitally visualize a product in their

physical environment (Du et al., 2022). This

technology is especially helpful in the apparel

industry. Coupled with the growing popularity of e-

commerce and online shopping, one of the biggest

limitations stopping some people from buying

clothing items online is the fact that they are unable to

see how that item looks on them, something that they

were only able to do in in-person stores. However,

their worries are now addressed by AR. With

augmented reality, customers can virtually “try on” a

piece of clothing by seeing what it looks like on a

virtual model that matches their body size (Jayamini,

Sandamini, Pannala, Kumarasinghe, Perera, &

Karunanayaka, 2018). Moreover, in some cases, AR

gives customers the option to self-customize the item

that they intend to purchase, including aspects like

color, fabric, and pattern (Jayamini et al., 2018). AR,

overall, is proven to be a powerful tool in digital

marketing for the apparel industry.

2.2 AI-Powered Recommendation

System

Another way that AI is integrated into marketing for

the apparel industry is by using AI-powered

recommendation systems. According to NVIDIA,

one of the biggest technology companies responsible

for creating AI, AI-powered recommendation

systems can study customers’ purchasing behavior

and patterns, which provide businesses with

suggested content that is most likely to attract their

target audiences’ attention (NVIDIA, n.d.). This

technology is extensively valuable to marketers in the

digital age because as more people are spending the

majority of their time online, the internet has become

the easiest and the most efficient way for marketers

to collect information about their target customers.

For the apparel industry, AI-powered

recommendation systems support e-commerce

fashion businesses to maximize their profits. These

systems utilize convolutional neural networks or deep

learning to analyze statistics and images. Using

information collected on social media platforms like

Instagram, deep learning models can easily identify

the most popular fashion trends (Akram, Malik,

Singh, Gehlot, Juyal, Ghafoor, & Shrestha, 2022).

This significantly benefits the apparel industry as

fashion is a dynamic market with new trends being

created every single day. Therefore, it is important for

companies in this market to be able to quickly detect

trends and adapt their products to match consumers’

ever-changing preferences, and they cannot do it

effectively without the help of AI-powered

recommendation systems.

2.3 AI-Driven Chatbots

As mentioned previously, with the rise of e-

commerce, people prefer to do most of their shopping

online instead of in physical shops. Other than not

being able to try on fashion pieces they like, another

crucial aspect that is lost in online shopping is in-

person shopping assistants. However, just like how

augmented reality can allow customers to virtually try

on clothing pieces, AI is the perfect solution to

solving the lack of shopping assistants online.

Researchers from the University of Balamand and

Saint Joseph University illustrate that AI has been

integrated into the field of customer relationship

management through AI-powered chatbots, and these

chatbots have been proven beneficial in multiple

industries, including the apparel industry (Khneyzer,

Boustany, & Dagher, 2024). The mechanism behind

the success of AI chatbots is their ability to mimic

human-to-human interactions, and people are more

likely to favor something if it exhibits human traits.

Study shows that products with more human

characteristics can foster positive brand association

and establish a more intimate relationship between

The Integration of Artiﬁcial Intelligence in Digital Marketing Strategies for the Apparel Industry

279

customers and the brand (Hildebrand & Bergner,

2019). Furthermore, the assistance provided by AI

chatbots can personalize customers’ shopping

experience and thus boost sales (Hildebrand &

Bergner, 2019). By using AI-driven chatbots to

recommend clothing pieces based on customers’

individual preferences, fashion businesses can

encourage consumer spending and gain loyal

customers.

3 POSITIVE AND NEGATIVE

IMPLICATIONS OF

EMPLOYING AI IN DIGITAL

MARKETING STRATEGIES

FOR THE APPAREL MARKET

3.1 Positive Implication: Enhance

Consumers’ Shopping Experience

and Increase Engagement

All three applications of AI in the apparel industry

have become increasingly popular in the last few

years due to their unique benefit. One of the biggest

positive effects of using AI tools is that they can

enhance consumers’ shopping experience, which in

turn increases engagement for a brand. Research done

by Kumar et al. (2024) examined the effect of

ChatGPT on increasing customers’ engagement, and

their findings suggest that the effective use of AI

allows companies to experience a 75% increase in

customer engagement (Kumar, Bapat, Kumar, Hota,

Abishek, & Vaz, 2024). Particularly for the fashion

and apparel industries, AI-driven recommendation

systems enable businesses to create user-based

recommendation systems by analyzing their

purchasing patterns (Akram et al., 2022). This means

that with AI, markets can personalize content for

individual target customers. For example, AI can

detect that a customer is actively looking at content

with long blue dresses, and in response, AI will advise

businesses to create a targeted advertisement for this

customer about long blue dresses. As a result, this

customer would be more likely to pay attention to this

advertisement since long blue dresses are what they

are interested in. Without AI-driven technology,

businesses could not analyze customer information

on an individual basis. Therefore, AI enhances

consumers’ shopping experience by effectively

generating personalized content tailored for them.

3.2 Negative Implication: Consumer

Data Privacy

For AI to effectively and efficiently analyze

consumer behaviors, AI requires a huge amount of

consumer data. Because of this, one of the biggest

ethical challenges faced by AI usage is data security

(Du & Xie, 2020). At the same time, the apparel

industry heavily relies on consumer data to operate,

as businesses understand this is a highly competitive

market and they need ways to stand out. Marketers

even consider consumer information as a must-have

for the fashion industry (Von Stockhausen, 2024).

Although it is undeniable that consumer information

is essential in AI marketing strategies, the danger of

violating consumer data privacy cannot be ignored.

According to a book titled AI for everyone published

by the University of Westminster Press (2021), the

ethical implications of using private consumer data

for AI algorithms include non-informed consent and

data security problems. Oftentimes, AI algorithms

read consumers’ private information without fully

informing them. Moreover, consumer data is often

not secured, which could lead to identity theft,

financial loss, and other harm (Daly, Devitt, &Mann

2021). These are all significant negative implications

that could directly harm customers. With AI, it has

become easier for businesses to overuse consumer

information improperly. However, marketers need to

be aware that a business’s reputation can be easily

destroyed by a scandal regarding the violation of the

ethical guidelines for using consumer private

information.

3.3 Negative Implication: Spreading

Misinformation

Even though AI tools are effective at gathering

information for marketers, these tools might bring the

risk of spreading false information in marketing

campaigns. As stated by a research article published

by Cambridge University Press (2023), AI models

like ChatGPT can make errors in generating facts and

reasoning for businesses when they are using it to

create marketing pieces (Monteith, Glenn, Geddes,

Whybrow, Achtyes, & Bauer, 2023). More

significantly, once these marketing contents are

posted online, the misinformation generated by AI

can spread rapidly (Monteith et al., 2023). The

apparel industry is one of the top markets that rely on

AI for marketing purposes. The data collected by

McKinsey and Company shows that the apparel

industry is expected to see an increase of $275 billion

in profit in the next five years because of AI (Harreis,

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Koullias, Roberts, & Te, 2023). Therefore, this

evidence implies that without proper regulation, the

apparel industry might be responsible for a large

portion of future marketing content that contains false

information. Misinformation online can greatly

influence people’s perception of reality in this digital

era.

4 SUGGESTIONS AND FUTURE

EXPECTATIONS

4.1 Establishing Ethical Guidelines

Around Using AI for Marketing

Purposes

To tackle the negative ethical implications of the use

of AI, policymakers and businesses need to establish

clear guidelines. Researcher Can-Luca Benkert from

the University of Twente (2019) highlights the need

to establish a code of ethics so that marketers and

businesses can have a more tangible set of standards

to regulate the use of private data in marketing

through the use of AI (Benkert, 2019). Similar

regulations could also be applied to creating clear

guidelines for information accuracy posted by

marketers. Some might argue that too many

restrictions on the use of AI in marketing might limit

its efficiency and productivity. However, the benefits

outweigh this concern. Businesses that have clear

ethical guidelines over their operation and marketing

strategies can ensure to maintain a good brand

reputation and enhance customer loyalty. This is

especially beneficial for the apparel industry as in this

highly competitive market, businesses need to find

ways to stand out among their competitors and gain

market shares, which can all be achieved through

having clear guidelines regarding to the use of AI as

a marketing strategy.

4.2 Using AI to Promote Sustainability

in the Apparel Industry

Although it is urgent to recognize the harms of AI

algorithms and employ effective responses to offset

the harms, AI’s significant advantages and smart uses

should not be overlooked. One example of smart use

of AI in the apparel industry is using AI models to

promote sustainability. The apparel market is

responsible for numerous environmental impacts.

The European Parliament states that the textile

industry accounts for almost 20% of global clean

water pollution (European Parliament, 2020). This

shows that the apparel industry is currently causing

serious harm to the natural environment worldwide.

However, thanks to technological environments, AI

can now be used to regulate water pollution. The

usage of AI has now transformed from removing

pollutants to controlling the advanced wastewater

disposal process (Ye et al., 2019). In some cases, AI

algorithms aid wastewater disposal systems by

reducing the total energy cost by up to 50 to 75% (Ye

et al., 2019). These applications of AI can be greatly

beneficial, as they can both reduce the cost of

operating wastewater management systems and solve

the problem of water pollution caused by the apparel

industry. This is only one example, though; AI can

also be applied to areas like controlling carbon

pollution and energy waste. All in all, AI brings

profound advantages to promoting sustainability and

environmental protection.

4.3 Expanding Knowledge Around

Ethical Applications of AI in

Marketing for the Apparel Industry

In order to ensure professionals in the marketing field

can fully embrace AI-driven innovations while

adhering to ethical guidelines, educators and

businesses can help raise awareness around the

applications and implications of AI. Professionals in

marketing suggest that as AI has become a

widespread phenomenon, an increasing number of

employers now expect their employees to be well-

versed in the role of AI as a marketing strategy, and

this highlights the need for educators to adopt their

teachings of the basics of marketing to the

contemporary age (Grewal et al., 2024). This is

especially relevant to the marketing aspects of the

apparel and fashion industry. The pieces of evidence

illustrate above all underscore the need for

comprehensive knowledge of the proper use of AI to

ensure its benefits are maximized while minimizing

its negative implications.

5 CONCLUSION

To sum up, through evaluating the research results of

professionals in the marketing, apparel, and

technological fields, this paper offers a thorough

examination of the application of AI-driven

technologies as marketing tools for the apparel

industry. On one hand, using AI tools, such as

augmented reality, AI-powered recommendation

systems, and AI-driven chatbots, can effectively

The Integration of Artiﬁcial Intelligence in Digital Marketing Strategies for the Apparel Industry

281

improve customer engagement and enhance

customers’ shopping experiences. On the other hand,

overreliance on AI can lead to controversies around

consumer data privacy and misinformation in the

apparel industry. Altogether, it is not difficult to see

how AI is a double-edged sword that brings both

positive and negative implications. As suggestions

for the future of AI usage by marketers, this paper

demonstrates the need for clear ethical guidelines,

adopting AI for sustainability purposes, and

expanding knowledge around the application of AI. It

is only through implementing a wide range of

responses that AI’s disadvantages can be mitigated

while strengthening its advantages.

As mentioned in the introduction of this paper, the

apparel industry is a huge market with the trend to

continue to expand. AI has become the answer for

many businesses to achieve the need to differentiate

themselves among competitors. However, just like

any other technology, marketers can only harness AI

with well-rounded knowledge. This paper’s main

purpose is to recognize both the negative and positive

consequences of using AI in marketing for the apparel

industry. It is only when the full scope of AI

applications is understood that the problems can be

mitigated, and AI will only be used for the good. The

future of AI-driven innovations will continue to

evolve and expand, so it is essential to never give up

gaining insight into new technologies. Further

research can delve deeper into the use of specific AI

mechanisms and apply them to a wider range of

industries.

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