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This is How a Startup is Changing the Fashion World with Tech

October 26, 2017 By Jeremy Jones, CFA

Over coming decades, artificial intelligence is going to profoundly change the way business is done on a large and small scale. Here the WSJ explains how Stitch Fix, an e-commerce apparel company is using AI to optimize design and sales.

Apparel seller Stitch Fix recently introduced a coral, sleeveless blouse with a split neckline—and an unusual creative provenance. It was one of three new tops designed with the help of artificial intelligence.

The San Francisco-based e-commerce company, which sends customers boxes of preselected outfits, is leveraging computers to analyze purchasing behavior and learn what elements of style are popular. The software then recombines well-liked sleeve types, cuts and prints into new looks to maximize the odds a client “loves the resulting style,” said Erin Boyle, a Stitch Fix data scientist.

The three tops sold out as part of preselected boxes last year, according to the six-year-old company, and in February, it started selling nine more items designed with the help of computers, including dresses and tops. It plans to sell more than two dozen others by the end of the year. (AI-created styles are priced similarly to human designs, according to a company spokeswoman.)

The “hybrid designs,” as they are known inside Stitch Fix, are part of a movement in the tech industry to develop software that can be creative, and produce content such as songs, logos, videogames, clothing and special effects. The field of computational creativity dates back decades, but is flourishing thanks to advances in machine learning, plus increased access to data and computing power.

Read more here.

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Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
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