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Discover how Cabi is revolutionizing the apparel industry with AI-driven innovation. From personalized styling to supply chain optimization, this innovative fashion brand is leveraging AI to enhance efficiency, creativity, and customer experience.
In the dynamic and competitive world of women's fashion, Cabi is making waves in the direct-sales apparel market. Founded in 2002 by fashion designer Carol Anderson and management consultant Kimberly Inskeep, the company has carved a unique niche by reimagining retail through a personalized, relationship-driven sales approach. The brand has experienced significant growth this past Fall of 2024 under the leadership of CEO Katie Malone-Woods, most notably through the expansion of their network of independent stylists.
"Our success at Cabi stems from understanding that fashion isn't just about the clothes—it's about creating meaningful connections between stylists and clients, a model that has proven its value year after year."
Katie Malone-Woods, CEO, Cabi
An impressive feat considering the current state of the global women's apparel market. Projected to generate $936.30 billion in revenues by 2025, with an anticipated compound annual growth rate (CAGR) of 2.71% through 2029, the market underscores the critical importance of strategic differentiation. Additionally, the fashion industry stands at the intersection of technology and consumer experience, and the transformative force of artificial intelligence has already begun to take root. As early as 2019, human stylists at Stitch Fix have been collaborating with AI.
"Our business is getting relevant things into the hands of our customers.
Eric Colson, Chief Algorithm Officer, Stitch Fix
The design process has also undergone a huge transformation in 2023-2024, as a suite of AI tools for designers became widely available to the public. Designers are generating new patterns and styles, expediting the design process, fostering creativity and innovation as a result.
And let's not forget about how AI is optimizing supply chain operations in the apparel industry. Consider fast-fashion giant Shien. At a retail conference in Berlin, January 2024, Peter Pernot-Day, Shein's head of global strategy and corporate affairs, revealed how the company leverages AI to optimize its supply chain. He shared that over 5,000 Shein suppliers now utilize an AI software platform designed to analyze customer preferences. This data enables Shein to produce small, targeted batches of merchandise, aligning supply with real-time demand.
“We are using machine-learning technologies to accurately predict demand in a way we think is cutting-edge. The net effect of this is reducing inventory waste.”
Peter Pernot-Day, global strategy and corporate affairs, Shein
It is against this backdrop of intense competition and industry transformation that Cabi approached Forum3 for guidance along their AI transformation. When it came to artificial intelligence the question was not if or when but how?
The age old question: How to do it better? How to do it the best?
"What excites me most is how these tools can drive productivity and connect different workflows, from pre-production to marketing, creating a seamless integration that benefits the entire team."
Naomi Elder, Vice President of Marketing, Cabi
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When Cabi's leadership first reached out to us at Forum3, their motivation was clear yet undefined. They understood artificial intelligence was becoming crucial in the retail landscape, but beyond that fundamental insight, they were uncertain about their next steps.
Cue the AI bootcamp, a comprehensive, 4-hour experience tailored for Cabi's leadership team. Every bootcamp achieves three critical objectives:
The leadership team emerged from the bootcamp with more than just knowledge—they were energized by the potential of artificial intelligence. However, they quickly recognized true organizational transformation required more than leadership buy-in; they would need to engage the entire team.
“We saw AI as more than just a tool—it represents a fundamental shift in how we operate—a true transformation. By building an AI-literate organization with our AI-First Strategy, we’ve positioned our team to adapt faster and more effectively than others. As AI continues to evolve, our ability to integrate and apply it will keep us ahead of the competition.
Keith Fairclough, Chief Information Officer, Cabi
Leveraging the momentum from the AI Bootcamp, Cabi partnered with Forum3 to develop a comprehensive 8-hour AI Workshop. This full-day, immersive experience was strategically designed to:
The workshop culminated in a strategic exercise. The "Fashion Drop of 2035" challenge was a structured 45-minute competition that required teams to use ChatGPT to develop a futuristic fashion collection. Participants collaborated with AI to complete trend forecasting, collection design, stylist integration, and marketing strategy, with a final one-minute pitch to demonstrate their concept. The challenge forced participants to move beyond theoretical AI discussions and apply the technology to initiatives relevant to their industry.
The challenge was highly enjoyed by the entire team, who found the exercise both relevant to their immediate needs and fun. The leadership team even observed that the process of embarking on an AI journey together as a team was great for team dynamics and morale.
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Since engaging with Forum3, the leadership and team at Cabi have demonstrated a remarkable ability to move from AI curiosity to practical application, bridging the gap between cutting-edge technology and real-world business challenges. Leveraging lessons learned from Forum3, organizational change at Cabi looks like weekly office hours, monthly organizational-wide meetings, and an internal "AI Champions" program.
“Forum3 helped us turn AI from an idea into action, giving us the structure to move quickly and make AI a real competitive advantage. The experimentation and progress across teams show how AI is being applied in ways that are reshaping how we work. It’s inspiring to see this level of creativity and collaboration—and this is just the beginning.”
Keith Fairclough, Chief Information Officer, Cabi
The depth of Cabi's AI transformation was evidenced by the awards recently handed out to teams for their use of AI.
"One of the things I’ve challenged my team with is if you’re ever working on something and it feels like it’s taking too long or is too hard, there’s definitely an easier way. AI encourages us to question our processes and find smarter, more efficient solutions."
Eboni Hudson, Director of Digital Marketing, Cabi
Cabi’s transformation into an AI-first company offers a roadmap for apparel and retail business leaders navigating the rapidly evolving intersection of technology and consumer experience. By embedding AI into multiple facets of their organization, Cabi has demonstrated how artificial intelligence can become a strategic differentiator in a competitive market.
Key takeaways:
Start with Education to Drive Alignment Across Leadership and Teams
AI adoption begins with a shared understanding. Through initiatives like AI Bootcamps and Workshops, Cabi ensured their leadership and teams understood not only the capabilities of AI, but also how it could be applied across their roles. Investing in education is crucial for cultivating organizational buy-in and encouraging a culture of experimentation and innovation.
Tailor AI Solutions to Business-Specific Challenges
Cabi’s success lies in how they tailored AI tools to meet specific organizational needs, such as "Willow the Writer" for content creation and "CTS Ticket Insight Assistant" for technical support. Leaders should focus on designing AI applications that address the most pressing challenges to enhance efficiency.
Empower Teams to Experiment and Innovate
A cornerstone of Cabi’s strategy is fostering a culture where employees feel encouraged to explore and apply AI tools in their daily work. By empowering teams to experiment, Cabi has seen rapid adoption and creative problem-solving, driving meaningful change across the organization.
As Cabi’s continues on their AI-first journey, they offer a powerful example of how retail brands can harness technology not as a replacement for human ingenuity but as an accelerator for innovation, collaboration, and growth. For business leaders in apparel and retail, Cabi’s story is a call to action: to invest in AI thoughtfully, and empower teams to innovate.
"It goes to show, if you've had some level of AI literacy, it's the difference between it being a novelty where you're not sure if it's worth $20 a month, all the way up to companies using this as an 'Iron Man suit' to create tens of millions of dollars of incremental enterprise value from the same technology, for the same price."
Adam Brotman, CEO, Forum3
