Is the Rise of AI in the Metaverse a Way to Make the Fashion Industry More Sustainable?

Digital transformation significantly impacts business growth and development, with the fashion industry once again at the forefront of major technological advancements. From the textile factories that powered the first industrial revolution to current explorations of artificial intelligence (AI), fashion now stands on the brink of a ‘second machine age’ (Brynjolfsson & McAfee, 2014). Over the next 12 to 24 months, AI adoption in the fashion industry is expected to accelerate (Comité Colbert and Bain & Company, 2024), particularly within the metaverse, as demonstrated by companies like DressX and The Fabricant. These organizations leverage AI in both B2C offerings and internal processes, enhancing operational efficiency and sustainability through advanced data management. This chapter addresses a research gap on the use of AI in the fashion metaverse for value generation and capture. Employing a multi-case study approach (Yin, 1993), this exploratory research investigates both the opportunities and challenges of AI implementation, emphasizing its potential to improve value chain efficiency and sustainability.