Fashion’s AI Evolution: The Good, The Bad and The Environmentally Ugly

The newest trend in fashion is not the latest IT bag, it is AI. From design studios to digital storefronts, brands are quickly integrating artificial intelligence into every part of their business. Virtual try-ons, automated styling assistants, AI generated models and predictive design tools are no longer experiments. They are becoming the norm. 

But as the excitement grows, so do concerns. The fashion industry is already under pressure for its environmental footprint, overproduction, and ethical challenges. AI introduces a new set of questions about transparency, fairness and the environmental cost. We take an honest look at AI in fashion. The good, the bad and the environmentally ugly. 

During the past two years, AI has gone from a novelty in fashion to a driver of digital creativity, powering virtual try-on tools to creating AI-generated models. But as quickly as the technology has developed, so too has the criticism. From brands facing backlash for using AI-generated models under the banner of “diversity,” to shoppers accusing AI styling tools of serving up misleading or unrealistic visuals, the conversation is no longer just about innovation, it’s about ethics, trust, and whether this use of AI in fashion can truly deliver on its sustainable promise without compromising authenticity. 

Where AI Shows Potential but Not Perfection 

Can AI keep its sustainable promise in fashion? AI is often positioned as a sustainability solution, but its benefits depend heavily on thoughtful and transparent use. In supply chain planning, AI can help brands reduce waste by forecasting demand more accurately. Material innovation is another promising area, with machine learning accelerating the development of recycled or lower impact textiles. Virtual design and digital sampling tools may also reduce the need for physical prototypes and product returns. Circular fashion systems are experimenting with AI too, using it to support resale, rental and wardrobe tracking. Personal styling apps like Whering are empowering customers to get more from what they already own. These developments show potential, but they are far from guaranteed solutions. Without oversight, AI can easily reinforce existing problems or create new ones. 

Ethical Pitfalls 

However, AI in fashion is sparking both innovation and backlash, particularly when it comes to authenticity, trust, and sustainability. The use of AI-generated models by brands like Levi’s and H&M, for instance, has been framed as a step toward diversity and inclusion, but critics argue it perpetuates “digital blackface,” risks displacing human jobs, and offers only shallow representation. Concerns about eroded trust are also evident in cases like Melbourne brand Atoir, which came under fire for using AI-generated model images that consumers found deceptive and misleading, damaging the brand’s credibility and potentially increasing product returns. More broadly, the rise of “AI slop” - a flood of low-quality, generic visuals, has sparked fears that fashion advertising and e-commerce may be drifting toward inauthentic content. 

Beyond visuals, AI shopping assistants have also shown limitations, with users reporting that automated recommendations are often generic, inaccurate, or frustrating to use, leading some to complain that the tools make shopping harder, not easier. Even when framed as sustainable, AI comes with risks: tools like ChatGPT have been tested as digital assistants but some argue these models regurgitate vague or biased claims, producing only a few credible suggestions while missing nuance.  

The Environmental Reality  

At the same time, AI itself carries a heavy environmental footprint due to energy and water consumption, complicating its role as a “green” solution. AI poses several environmental challenges, primarily because it relies on data centres whose hardware requires vast amounts of raw materials, including rare earth elements mined in environmentally damaging ways. These facilities also generate hazardous electronic waste and consume large quantities of water for construction and cooling; global AI infrastructure may soon use six times more water than Denmark.  

In addition, powering AI systems demands significant energy, much of it still produced by fossil fuels; for example, a single ChatGPT query can use ten times the electricity of a Google Search, and data centres in countries like Ireland could account for 35 per cent of national energy use within a few years. With the number of data centres surging from 500,000 in 2012 to about 8 million today, these impacts continue to grow. AI is considered an environmental wildcard because, beyond data centre impacts, its applications may change human behaviour in unpredictable ways, such as self-driving cars encouraging more driving, and could even amplify climate misinformation, influencing public understanding and policy.

The Road Ahead: Building Responsible AI in Fashion 

Building a responsible future for AI used in fashion requires a balance of innovation, ethics, and transparency. Clear labelling of AI-generated visuals, along with fair compensation for human models whose likeness or labour is used, will be essential to maintaining trust. Equally important is data quality; brands should rely on verified sources and sustainability validation tools, such as Compare Ethics, to ensure claims are accurate and not greenwashing. Regulation will also play a key role, with frameworks like the developing EU AI Act shaping what fair use looks like in practice, with the UN suggesting integrating AI-related policies into wider national environmental regulations is needed to ensure a coherent, sustainable approach to using the tool.

At its best, AI can support genuinely sustainable practices, from ethical supply chains to circular business models, while, if appropriately regulated, still preserving the irreplaceable value of creativity, authenticity, and human craftsmanship in the fashion industry. 

If you want support in understanding the potential risks to people within your organisation or supply chains, you are welcome to get in touch with a member of the TGC team.