Venture capitalists are increasingly investing in startups that integrate AI technology into the fashion industry. Despite a general decline in venture capital funding post-pandemic, investments in AI-driven fashion startups have remained steady, with a notable spike in 2022. The fashion industry, valued at an estimated $1.8 trillion globally, is projected to grow to $2.3 trillion by 2030, making it a lucrative sector for AI innovation. Startups are leveraging AI for trend prediction, creative design, personalized shopping, and smart manufacturing. Companies like Zhiyi Tech in China, Finesse in the U.S., and Raspberry AI in New York are leading the charge with innovative solutions. AI is also transforming consumer experiences through personalized recommendations and virtual try-ons, while startups like Smartex.ai and Refiberd are advancing sustainable practices in garment manufacturing. As AI continues to be a hot trend among investors, its integration into fashion is expected to drive further growth and innovation in the industry.
Are AI and fashion startups attracting strong investor interest?
