Apparel Giants Turn to AI to Meet New Supply-Chain Transparency Rules

AI platforms are helping retailers such as Gap and H&M quickly compile required supply-chain documentation as US and EU regulations tighten.

New regulatory frameworks in the United States and Europe demand detailed traceability of apparel production, prompting brands to seek AI-driven solutions. Inspectorio’s senior vice president for Americas, Mark Burstein, says AI can compress the documentation process—from dozens of hours to about one hour—by automatically gathering audits, purchase orders and environmental data. Retailers including Gap, Mango, H&M, ASOS and Vera Bradley are employing such platforms to detect supply-chain risks, from forced-labor violations to flood exposure in Bangladesh.

Fashion consultant Kenchen Bharwani notes that AI surfaces hidden disruptions faster, allowing corrective action before they affect operations. Small-scale maker OMJ Clothing in Charlotte used an AI model to create a real-time dashboard that alerts staff to factory delays, improving customer communication. Overall, AI is becoming essential for meeting extended producer responsibility, the Uyghur Forced Labor Prevention Act and upcoming Digital Product Passport requirements.