This year, a new hero has joined Santa Claus’s entourage of reindeer and elves – artificial intelligence (AI). Today, everyone can use large language models like ChatGPT to help in the search for Christmas gifts. If you find clothes under the tree this year, you can be almost certain that AI was used at some stage of the product’s production or sale. The increasing prevalence of AI assistance offers hope that there will be fewer disappointing gifts this Christmas.
AI not only continues to transform our world but also addresses one of December’s biggest challenges – choosing the perfect gifts for family and friends. Nowadays, anyone can use large language models like ChatGPT to help select ideal presents. Simply describe the interests and tastes of the recipient, and AI will provide inspiring suggestions. I’ve tried this method myself, and I must admit that some ideas have a high chance of being a hit. Thanks to AI, there may be fewer unwanted socks with outdated patterns or books we have no interest in reading under the tree this year.
AI in Business and the Fashion Industry
In business, AI is currently the hottest trend on the market, with AI-based solutions expanding across a wide range of industries. If you receive clothing as a gift this year, AI likely played a role in its production or sale. For example, Zara uses AI to predict the most popular styles for each season. Meanwhile, fashion giant H&M leverages AI to create more personalized shopping experiences. The brand’s mobile app analyzes past purchases, behaviors, and browsing habits to recommend products that match customers’ tastes. Nike uses AI in its Nike Fit app to scan customers’ feet and recommend the ideal shoe size, enhancing the shopping experience and reducing returns.
Zara, part of the Inditex group, has integrated AI into trend forecasting and inventory management processes. Algorithms analyze trends from social media, fashion blogs, and sales data to predict which styles and products will be most popular. Thanks to AI, Zara has significantly shortened the time it takes to launch new designs. Radio-Frequency Identification (RFID) technology powered by AI allows Zara to track clothes from production to sale, optimizing logistics and reducing waste.
Inditex’s AI-Driven Growth and Sustainability
Inditex, known for its innovative approach, achieved solid results for the first nine months of 2024, despite a weaker third quarter. Sales increased by 7.1% year-over-year, reaching €27.42 billion, and net profit rose by 8.5% to €4.45 billion. The company also announced an investment in the startup Epoch Biodesign, which uses AI to design enzymes for textile recycling, making clothing production more sustainable. Inditex remains committed to expansion and sustainability, allocating €1.8 billion for investments in 2024. However, the third-quarter results, announced last week, fell below expectations. Although the stock price has risen more than 28% since the beginning of the year, it is currently 8% below its pre-results level.
AI: A Boon for Investors and Gift-Givers
AI supports not only Santa Claus and holiday shoppers but also garners increasing attention from stock market investors. According to the latest eToro Individual Investor Pulse survey, Polish investors have strong confidence in AI-related companies. Five percent of respondents expect significant value increases in 2025, while 35% anticipate more gradual stock price growth.
Author: Paweł Majtkowski, eToro Analyst in Poland
Source: Manager Plus
