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Textile sector may soon be at crossroads because of AI’s increasing role in fashion supply chain

49 1
11.03.2025

The fashion industry is notorious for its carbon footprint, responsible for around 10 per cent of global emissions according to the United Nations Environment Programme.

For years, the fashion industry has made grand promises about sustainability. Brands tout their commitments to net-zero emissions, circular fashion, and ethical supply chains, yet the reality remains unchanged: overproduction is accelerating and emissions are rising.

Now artificial intelligence (AI) has entered the conversation, heralded as a game-changer for sustainable fashion. The narrative is seductive: AI can fine-tune production, minimise overstock, and streamline demand. However, this argument ignores a critical issue: AI’s role in fueling consumption.

A fundamental economic principle at play here is Jevons’ Paradox, the idea that technological advancements meant to improve efficiency often leads to increased consumption.

The fashion industry’s AI adoption is an example of capital-biased technological change, where investment in technology increases productivity but does not necessarily translate into a reduction in resource consumption. Instead, firms reinvest these efficiency gains into scaling production, reinforcing fast fashion’s exploitative business model. The result? Lower marginal costs per unit, higher volumes, and a race to capture market........

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