Fash-Tech & GenAI: The Transformation of the Fashion Industry with Artificial Intelligence

The fashion world is undergoing a transformation where creativity and technology are more intertwined than ever before. From design processes to production, from marketing to customer experience, the influence of artificial intelligence is rapidly expanding. This change is reshaping not only creative vision but also business models and market dynamics. As of 2024, the global fashion design software market has reached $3.8 billion, and it is expected to grow at a CAGR of 8.6%, reaching $7.99 billion by 2033.

The fashion world is undergoing a transformation where creativity and technology are more intertwined than ever before. From design processes to production, from marketing to customer experience, the influence of artificial intelligence is rapidly expanding. This change is reshaping not only creative vision but also business models and market dynamics. As of 2024, the global fashion design software market has reached $3.8 billion, and it is expected to grow at a CAGR of 8.6%, reaching $7.99 billion by 2033.

In January 2025, an AI-focused fashion startup called Raspberry AI raised $24 million in funding led by world-renowned venture firm a16z (Andreessen Horowitz).

This investment is not just a financial success but also a strong signal of how the fashion industry is being reshaped. By placing AI at the core of the creative process, Raspberry AI accelerates and diversifies the entire design cycle—from ideation to collection planning. This represents one of the clearest examples of AI’s transformative impact on fashion technologies.

And this is not the first use of AI in fashion. In April 2023, Revolve launched a limited-edition collection designed entirely by AI, while Casablanca created the marketing and advertising visuals for its Spring/Summer ‘23 collectionusing AI. These cases demonstrate that AI is no longer just an experimental technology in fashion but has become a part of core operational processes.

AI’s Expanding Role Across Fashion Processes

Today, many fashion brands are integrating AI not only into production or visual design but also into customer experience and content creation. According to the State of Fashion 2025 report by McKinsey and Business of Fashion, 25% of the industry’s future value will be generated by the integration of AI into design and product development processes. The same report highlights that, by 2025, the majority of fashion executives consider generative AI as their top strategic priority. McKinsey further projects that AI could add more than $275 billion to the operating profits of the apparel, fashion, and luxury sectors in the near future.

AI is transforming not just production efficiency, but also aesthetics, creativity, and customer engagement.

• Design: With data-driven insights, trend forecasting becomes more accurate, leveraging data from social media, e-commerce, and street fashion. Designers can use AI to generate text-to-image patterns, moodboards, and color palettes within seconds, enriching their creative options and accelerating workflows.
• Production: AI-powered systems can generate technical design packs (tech packs) for new concepts. With virtual samples, the need for physical prototypes decreases, saving both time and cost. AI also optimizes fabric layouts, minimizing waste.
• Marketing & Sales: AI can produce product descriptions, campaign visuals, e-commerce photos, and videos quickly, at scale, and tailored for personalization. Digital fashion models allow multiple body types, poses, and backgrounds, reducing production time and costs.
• Consumer Experience: AI personalizes shopping journeys by offering product and style recommendationsbased on users’ past behavior and purchase history.

Turkey’s Role in This Transformation

Globally, startups are increasingly focusing on each of these verticals, and we are also seeing promising ventures emerging from Turkey. As one of the world’s largest apparel exporters, Turkey has surpassed Vietnam with a 6% share of Europe’s apparel imports, according to McKinsey. This underscores not only Turkey’s current strength but also its strategic future role in Europe’s fashion ecosystem.

Thus, Turkish startups that accelerate and optimize industrial and production processes with innovative AI solutions hold significant potential to create added value for the country.

From design to production lines, from content creation to customer engagement, AI is driving a transformation across the industry. However, this impact is only at the beginning of its journey. In the coming years, not only individual brands but also supply chains, manufacturing clusters, retail giants, and global market strategies will be reshaped by these technologies.

Fashion is no longer driven solely by intuition—it is now powered by data, algorithms, and sustainability goals. This transformation is not just a temporary trend but a signal of a new industry standard. At Boğaziçi Ventures, we stand at the heart of this shift, supporting startups that strategically integrate AI and hold the potential to scale globally.

Istanbul Chamber of Industry GSYF (SOF)

The Istanbul Chamber of Industry Venture Capital Investment Fund (SOF) is a strategic fund designed to elevate Turkish entrepreneurs to global success while strengthening the international competitiveness of Turkish industry. Its core vision is to support the growth of ventures that can directly or indirectly impact industry positively, while ensuring they create lasting value in international markets.

By combining Turkey’s industrial strength with cutting-edge technology, this approach allows us to invest in local startups that will shape not only today’s but also tomorrow’s industrial infrastructure, channeling innovation into the transformation of our industries.

Managing your investments securely, diversifying your portfolio, and minimizing risks are made possible through the expertise of BV Portföy. For more information, you can always reach us at www.bvportfoy.com or contact us directly: [email protected]

Boğaziçi Ventures’s Commitment

For over a decade, we have worked with dedication to contribute to and create value in Turkey’s tech startup ecosystem. With our deep expertise and strong network, we support entrepreneurs in building globally competitive businesses. At Boğaziçi Ventures, we believe in leveraging the power of technology across multiple verticals to deliver sustainable and intelligent solutions.

We invite entrepreneurs to apply for investment meetings with Boğaziçi Ventures via [email protected] . Take this opportunity to scale your startup and join our global business network today!