Impacts of AI on the Fashion Industry: The Future of Fashion

Kaitlyn Cunningham, Verrazzano Class of 2026, completed major in Business Marketing   

I chose my research topic based on my own experience working in the fashion industry as a model over the past few years. I’ve seen a lot of changes happen recently, especially with the rise of artificial intelligence, and it made me curious about what was going on behind the scenes. I started noticing a rise in digital content, data-driven decisions, and even AI-generated models being used in campaigns. Because of that, I was wanted to learn more about how AI is affecting the industry and what it could mean for people like me who are part of it.

Before starting this capstone, I thought it would mostly just be about finding sources and putting information together into different sections. I didn’t expect it to be as in-depth as it was, and I realized there was a lot more to it once I started researching. I had to think about different perspectives, especially when it came to ethical issues like privacy, bias, and job loss. It ended up being more about analyzing and understanding the impact of AI rather than just explaining what it is.

One of my biggest challenges was narrowing down my topic, because AI in fashion covers so many different areas. I wanted to include everything, but I had to figure out what was most important and relevant to me. Another challenge was making sure I was using my sources correctly and connecting them to my ideas. Some parts were easier, especially when I was writing about the modeling industry and AI-generated models, because I could relate it to my own experiences. Something that surprised me was how much AI is already being used in ways people don’t even realize, like predicting trends or managing inventory. I didn’t realize how advanced and common it already is.

If I were to continue this research I would want to focus on how AI is going to affect jobs in the fashion industry long-term, especially for models, designers, and other creative roles. Overall, this project helped me understand that AI is changing the fashion industry in a lot of ways, both good and bad. It can make things more efficient and personalized, but it also raises important issues like privacy, fairness, and authenticity. The biggest thing I am taking away from this is that AI is something that is actively shaping the future of the fashion industry. As someone who is part of it, doing this capstone made me think about how these changes could affect my career and the importance of balancing technology with human creativity. 

Economic and Financial Dynamics in Luxury Fashion

Qadar Naeem, Verrazzano Class of 2024, completed major Economics and Finance, and minor in Business Data Analytics

My capstone project combined my fascination for both fashion and finance. I explored the luxury fashion industry, which has a global market valued at $1.6 trillion.
The project’s purpose was to understand the economic and financial structure of the industry, how companies navigate economic challenges and optimize their financial performance during recessions, and adapt to changing consumer behaviors. Moreover, how strategies like a merger or an acquisition (M&A) help firms adapt to downturns and enhance performance.
My methodology involved analyzing financial data such as the stock market, economic indicators, and corporate reports to understand the trends within the industry, while also examining recent mergers and acquisitions activity in the sector to assess their impact on the company's performance. My main focus was to identify trends or patterns in major conglomerates such as LVMH, Kering, and Richemont, and analyze the array of brands that fall under these companies.
When researching these corporations, it was really interesting to discover a steady linear growth pattern in their financial data, which demonstrates their stability and adaptability. Despite the volatile nature of economic markets, these companies have shown an extraordinary propensity for long-term success.
Companies within the industry with a beta less than 1 demonstrate low market risk, as a beta value of 1 implies that the stock moves in line with the market. When it's below 1, it means the stock tends to be less volatile than the overall market, indicating lower risk since it's not as affected by market fluctuations. This has been proven by their response to the COVID-19 recession and the Great Recession. The way they have managed to withstand downturns and emerge stronger demonstrates their strategic competence.
It was intriguing to learn how closely these luxury brands are linked, and how most of them are owned by the same parent companies. When we see names like Loro Piana, Christian Dior, Givenchy, Celine, and Fendi, they appear to be completely unrelated. However, they are all owned by the same parent company, LVMH. This usually happens when subsidiaries are split off by a merger or an acquisition, such as Tiffany and Co. being acquired by LVMH in 2021 and Bulgari in 2011.
My journey into research in the luxury fashion industry has been filled with profound discoveries and insight. Through comprehensive research and monitoring of financial data, I gained a greater understanding of the industry's corporate functions, and structural complexities while also observing extraordinary resilience and adaptability.