Unveiling Insights From WIRED’s Big Interview 2025 Event

Unveiling the Realities of Launching an AI Startup in Fashion

Update The Challenges of Launching an AI Startup in Fashion Launching an AI startup in today's fast-evolving fashion industry can appear as a straightforward task on paper. However, as Julie Bornstein, founder and CEO of the AI fashion startup Daydream, reveals, the reality is far more complex. Despite a remarkable career in eCommerce, Bornstein learned that implementing AI to enhance customers' shopping experiences requires more than just technological savvy—it takes a deep understanding of both fashion nuances and user expectations. AI's High Hopes and Real-World Hurdles The initial enthusiasm surrounding AI applications has somewhat deflated; many projected benefits have not materialized as expected. A recent evaluation found that 19 out of 20 AI projects in enterprises failed to deliver tangible results. Fashion executives are largely hesitant due to high initial costs, ROI uncertainties, and the challenge of integrating AI with existing systems. For startups like Daydream, the continuous struggle is not about creating innovative apps but rather about ensuring those innovations translate into real consumer value. Understanding User Needs: An Essential Step Bornstein discovered that seemingly simple requests—like finding a perfect dress for a wedding—come with layers of complexity. Is the user the bride, the maid of honor, or a guest? The level of formality and seasonality must also be factored in, complicating what an AI model must interpret and deliver. This realization pushed Daydream to pivot rather than rush its launch, highlighting the need for deeper insights from both technical and creative perspectives. Barriers to AI Adoption in the Fashion Sector AI adoption in fashion isn't just about technology; it's also about addressing several systemic barriers. A lack of expertise is prevalent, with many fashion executives unsure how AI could enhance their creative processes. At the same time, resistance remains due to fears of losing creative integrity as AI takes on a more prominent role. Addressing these challenges means investing in education and partnership with specialized AI providers who understand the color, texture, and 'likeability' that are core to fashion. By bridging the gap between creativity and technology, brands can employ AI not just as a tool but as an integral part of their creative vision. The Human Element in AI Development To truly unlock AI's potential in fashion, startups must focus on their teams. Bornstein's most pivotal move was hiring technology leaders with a nuanced grasp of fashion challenges. Collaborating with experienced engineers who appreciate the artistry of fashion could mean the difference between failure and success. This human factor, combining expertise with creativity, can drive innovation uniquely suited to meet fashion consumers' desires. Looking Ahead: The Future of AI and Fashion As we glance into the future, the fashion industry stands at a crossroads. The demand for personalized and sustainable practices opens the door for AI innovations that prioritize eco-friendly products and customer-specific experiences. Brands like Daydream may one day redefine how consumers engage with fashion by effectively merging AI's analytical prowess with human creativity, creating a seamless and delightful shopping experience. Understanding and embracing the complexities of AI technology, while leveraging it to meet user needs, may be the key to success for budding fashion startups. The landscape can be daunting, but persistence could ultimately lead to groundbreaking solutions that transform consumer interactions in the fashion ecosystem.