Filings buzz in fashion and accessories: 48% decrease in artificial intelligence (AI) mentions in Q2 of 2021 - Just Style
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Filings buzz in fashion and accessories: 48% decrease in artificial intelligence (AI) mentions in Q2 of 2021

By Andrew Hillman 19 Nov 2021

In total, the frequency of sentences related to artificial intelligence between July 2020 and June 2021 was 31% decrease than in 2016 when GlobalData, from whom our data for this article is taken, first began to track the key issues referred to in company filings.

When fashion and accessories companies publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Artificial intelligence is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges.

To assess whether artificial intelligence is featuring more in the summaries and strategies of fashion and accessories companies, two measures were calculated. Firstly, we looked at the percentage of companies which have mentioned artificial intelligence at least once in filings during the past twelve months - this was 74% compared to 68% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to artificial intelligence.

Of the 10 biggest employers in the fashion industry, Wacoal Holdings Corp was the company which referred to artificial intelligence the most between July 2020 and June 2021. GlobalData identified 22 artificial intelligence-related sentences in the Japan-based company's filings - 1% of all sentences. Hermes International SA mentioned artificial intelligence the second most - the issue was referred to in 0.1% of sentences in the company's filings. Other top employers with high artificial intelligence mentions included Yue Yuen Industrial (Holdings) Ltd, Pou Chen Corp and Christian Dior SE.

Across all fashion and accessories companies the filing published in the second quarter of 2021 which exhibited the greatest focus on artificial intelligence came from Pou Chen Corp. Of the document's 2,590 sentences, four (0.2%) referred to artificial intelligence.

This analysis provides an approximate indication of which companies are focusing on artificial intelligence and how important the issue is considered within the fashion industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning artificial intelligence more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into artificial intelligence have been successes or failures.

In the last quarter, fashion and accessories companies based in Western Europe were most likely to mention artificial intelligence with 0.06% of sentences in company filings referring to the issue. In contrast, companies with their headquarters in the United States mentioned artificial intelligence in just 0.05% of sentences.