By Tolani Adejuro
FashIon Brand News/ Fashion Tech
The fashion industry is undergoing a major transformation as shopping shifts from human-led browsing to AI-driven decision-making, according to insights shared at the State of Fashion 2026 webinar, the tenth annual report by McKinsey & Company in partnership with the Business of Fashion.
“The future is moving away from human-first and toward agent-first,” said Anita Balchandani, senior partner at McKinsey. She explained that AI agents, equipped with personal preferences and purchase histories, are increasingly making buying decisions on behalf of consumers.
Balchandani described this shift as potentially existential for multibrand aggregators and retail platforms, warning that brands must adapt or risk being sidelined in AI-driven commerce.
Discovery is evolving
Consumers are now relying on AI assistants not just to browse but to discover products. “Where search engine optimization (SEO) once dominated, generative engine optimization (GEO) is emerging as the critical factor for brands to be found by AI agents,” Balchandani said.
Research cited during the webinar showed that larger legacy brands are sometimes underrepresented on AI platforms, while smaller, disruptive brands often gain greater visibility, highlighting the changing competitive landscape.
Brands must act now
Investments in agentic search—AI-powered tools on brand websites—are already showing significant customer growth, according to Balchandani. Companies are being urged to integrate APIs with AI assistants, expand digital content across platforms, and clarify their role in emerging AI-assisted ecosystems.
She also noted early experimentation with AI-assisted checkout, signaling that brands must decide how deeply they want to embed themselves in automated purchasing experiences.
“Brands that adapt to AI-driven discovery and buying will thrive, while those that resist may struggle to remain relevant,” Balchandani concluded, emphasizing that the shift is no longer optional but essential for long-term survival in the fashion marketplace.
