Will AI save fashion supply chains?

Fashion companies may need emerging artificial intelligence (AI) supply chain technologies to comply with increasing international legal and consumer demands for supply chain transparency and to avoid costly import detentions, penalties, criminal violations, and reputational harm, writes Angela Santos, partner at law firm ArentFox Schiff.

Historically, fashion companies only had direct relationships with certain finished goods or fabric suppliers and relied on a network of agents, trading companies, and suppliers to source and take responsibility for upstream materials. Today, fashion companies are accountable for their entire supply chain due to recently proposed or implemented US and international legislation, non-governmental agency (NGO) and Congressional investigations, suits by private actors in international courts, and consumer demand for sustainable goods. This will fundamentally change how fashion companies operate globally and drive many to seek AI solutions to help with supply chain due diligence and identify risks.

Increased supply chain responsibility for fashion brands

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