The world is changing. Can fashion keep up?

AI is fundamentally reshaping the fashion industry, necessitating a transition from isolated pilot programs to comprehensive organizational rewiring. While luxury brands face economic uncertainty and shifting consumer priorities—such as a heightened focus on well-being and affordable luxury—AI offers critical opportunities for value creation across the entire value chain. Strategic applications include generative tools for design, hyper-personalized marketing, and precision demand forecasting that enhances sustainability by reducing overproduction. Furthermore, the emergence of agentic conversational agents represents a profound structural shift, potentially altering how consumers discover products and interact with brands. As McKinsey senior partners Gemma Dauria and Holger Harreis note, success in this environment requires leaders to prioritize deep integration of AI into core operations, such as clienteling and supply chain management, to maintain relevance and drive long-term growth in a competitive, highly concentrated market.