AI for Circular Economy in Fashion
A circular business model powered by different digital technologies, with an emphasis on AI, to accelerate the shift to a Circular Fashion Industry.
Challenge
AI Transforms the Fashion Industry for Circularity
The fashion industry faces social, environmental, and economic sustainability challenges, with issues such as unsafe working conditions, carbon emissions, waste crisis, and inadequate waste management. A Digital Product Passport (DPP) addresses these challenges, aiming to share essential sustainability and circularity information across industry stakeholders and empower consumers to make sustainable choices. The DPP requirements cover various aspects of the product life cycle and create the need for innovation management in areas like brand-customer interaction, authentication, warehouse management, and demonstrating sustainability's impact on business. The goal is to create a circular fashion value chain while ensuring compliance and maintaining or growing profit margins.
Team
Katarina Prokić, Sanam Jan Sulaimankhil, Eden Castaneira Rios, Jian Peng, Teresa Akumu Opiyo
About the prototype
SAP Recommerce aims to enhance circularity by reusing items, but there is untapped potential for entire circularity. The integration of Digital Twin, Blockchain, and AI technologies is proposed to achieve this. This solution enables the entire fashion supply chain, providing information to customers about product origins and environmental impact and offering incentives for sustainable choices. Additionally, AI systems assist brands and retailers in decision-making and sorting of returned items, promoting reusing, remaking, or recycling options. This business model creates a circular fashion economy by delaying disposal and maximizing sustainability. The integrated software as a service and business model involves all value chain actors, offering traceability, and transparency. Digital Twin facilitates simulations, environmental impact calculations, and authentication, while Blockchain ensures trustful traceability and information unity. AI supports garment screening, optimizing circular processes, and Large Language Models engage customers through nudging and gamification activities. The Digital Twin is created and updated throughout the value chain. Its information and processes are added to the Blockchain, customers can return garments and receive incentives while providing updates, and the AI tool suggests reuse, resale, rent, remake, or recycle options based on the information available, all recorded in the Digital Product Passport (DPP) and Blockchain.
Outputs
Product Teaser
Further information about the progress, milestones, and roadblocks.
Example for post for Instagram
Example for post for Instagram
Impressions
