The Use of AI

Artificial intelligence can help companies, like H&M, understand environmental nuances for each raw material. They can also input that information into the apparel supply chain.

Additionally, artificial intelligence, combined with predictive technology, can help with the sustainability of the supply chain. H&M is applying this ability to fast fashion, but Zeighami stated that it could also be applied to other industries. This particular use of AI comes down to matching up demand with supply.

Data analytics and AI let H&M ensure that the proper products are in the ideal place at the right time. They also ensure that products get transported to the appropriate warehouse. H&M has already been using AI in this way to boost sustainability. The company now wants to see if it can use it in a similar way for the entire production, not just the supply chain.

The AI Department Focuses on Sustainability

When H&M created the AI department two years ago, it was with several expressed goals, including improving its sustainable business decisions. According to Zeighami, 270 people are working hard to use AI in various company segments, encouraging data-driven decisions.

The idea is that the AI will help H&M make exact calculations as to how much of a specific item will sell. With that information, they can send the exact amount of items needed, without sending more and using additional resources.

Sustainability in Fast Fashion Has Been a Major Concern

This focus on sustainability and the use of AI to achieve it from H&M is vital as the fast fashion industry is known for being unsustainable. One of the worst examples was in 2017 when Danish journalists accused H&M of burning 12 tons of clothes. At the time, H&M said the destruction was due to the clothing having consumer safety concerns or being damaged. Other brands have also been shown to burn clothes as a way to get rid of the excess.

Hopefully, this use of AI will dramatically improve H&M’s sustainability and encourage other companies to use the technology similarly.

Sources:

https://www.retaildive.com/news/hm-turns-to-big-data-ai-to-tailor-store-assortments/523137/

https://www.supplychaindive.com/news/HM-AI-supply-chain-sustainable/570400/

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