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AI Fuels Shein’s Growth but Increases Its Environmental Impact

14/09/2024
in News
AI Fuels Shein’s Growth but Increases Its Environmental Impact

In 2023, Shein, the fast-fashion behemoth, saw unprecedented global reach, with its rapid delivery of inexpensive clothing fueling an online sensation. The company’s embrace of AI technology, designed to streamline operations and respond swiftly to consumer trends, has helped it become a dominant force in the fashion industry. However, this efficiency comes at a steep environmental cost.

AI and Fast Fashion: A Powerful, but Polluting, Combination

Shein’s business model relies heavily on advanced AI to manage its ultra-fast supply chain. The company uses machine-learning algorithms to analyze customer preferences and predict demand with remarkable precision. This enables Shein to produce and deliver new designs quickly—sometimes within just 10 days. The results are impressive: up to 10,000 new items are added to its website daily, and the company reportedly offers around 600,000 items at any given time. This “on-demand” model contrasts sharply with traditional fashion retail, which often involves bulk production and seasonal collections.

While AI helps Shein maintain its rapid pace, it also amplifies the environmental footprint of its operations. The company’s reliance on air shipping for individual packages contributes significantly to its carbon emissions. According to Shein’s third annual sustainability report, its carbon dioxide emissions surged to 16.7 million metric tons in 2023, marking a dramatic increase from the previous year and making Shein the highest-emitting company in the fashion sector.

Sustainability Challenges Amid Rapid Expansion

Despite its pledge to reduce carbon emissions by 25% by 2030 and achieve net-zero emissions by 2050, Shein’s environmental impact continues to grow. The company’s sustainability report highlights several issues:

Textile Waste: Shein’s garments are predominantly made from polyester, a synthetic material that contributes to microplastic pollution. Only 6% of the polyester used is recycled.

Labor Practices: Reports of poor working conditions persist, with factory workers often enduring grueling 75-hour work weeks. Third-party audits indicate that 71% of suppliers received a grade of C or lower, reflecting ongoing labor issues.

Transportation Emissions: A significant portion of Shein’s emissions comes from transportation, with air shipping contributing heavily due to the company’s model of sending individually addressed packages.

The Role of AI in Driving Fast Fashion

AI’s role in Shein’s operations is critical but controversial. The company uses machine learning to predict and react to micro trends, allowing it to offer a vast array of constantly updated products. While this approach reduces inventory waste compared to traditional models, it also promotes a cycle of rapid consumption and high production, leading to increased environmental damage.

Shein’s AI-driven model allows for the production of limited quantities of each item, but this efficiency does not fully offset the emissions associated with fast fashion. The company’s increased use of cargo ships, while a step toward reducing emissions compared to air freight, does not address the broader issues of overproduction and waste.

Potential for Sustainable AI Use

There is evidence that AI can contribute to sustainability in the fashion industry if used effectively. Studies have shown that AI technologies can help monitor environmental impacts and improve supply chain efficiency, leading to reduced emissions and better adherence to sustainability goals. However, Shein’s current use of AI does not extend to tracking emissions or optimizing for environmental impact in these ways.

Moving Forward: Addressing the Core Issues

The core issue remains the inherently unsustainable nature of the fast-fashion model. While AI can optimize processes and reduce waste, it cannot resolve the fundamental problems of overproduction and excessive consumption. As long as fast fashion promotes rapid turnover and high-volume production, its environmental footprint will likely continue to grow.

To achieve meaningful change, industry experts suggest that the focus should shift towards encouraging more sustainable consumption patterns and reducing overall production. As Sage Lenier from Sustainable and Just Future notes, the ethical implications of AI in fast fashion are complex, with the technology often exacerbating existing environmental and labor issues rather than mitigating them.

Conclusion

Shein’s rise to prominence is a testament to the power of AI in modern retail, but it also highlights the challenges of aligning technological advancement with environmental sustainability. While the company’s use of AI enables unprecedented efficiency and market responsiveness, it also underscores the urgent need for more sustainable practices within the fashion industry. Without addressing the root causes of its environmental impact, Shein’s rapid growth may come at a significant cost to the planet.

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