Kleep contributes to groundbreaking white paper on AI trust at Paris AI Summit

Introduction

As artificial intelligence (AI) reshapes retail, a new form of dialogue is emerging between shoppers and their virtual advisors. While traditional retail relied on the nuanced interaction between customers and sales associates, today’s AI systems are creating unprecedented ways for humans to communicate their preferences, receive personalized guidance, and build lasting relationships with technology. Through body scans, preference learning, and continuous feedback loops, consumers are no longer passive users but active participants in an evolving conversation with AI. This shift transforms the very nature of shopping assistance, as customers share intimate details about their bodies and preferences with AI systems that learn, adapt, and grow more attuned to individual needs over time. The success of this new paradigm hinges not just on technological advancement, but on the delicate balance between artificial intelligence and human trust, raising fundamental questions about how we interact with machines in our personal shopping decisions.

The growth of online shopping

Recent technical breakthroughs in generative artificial intelligence are transforming the way humans live, work and interact. The fashion industry is no exception. As more consumers turn to shopping online, fashion brands are increasingly opening up their digital storefronts to meet the growing demand. In fact, the global fashion e-commerce market is projected to grow at a compound annual growth rate (CAGR) of 9.7%, reaching $975 billions by 2025, about 25% of total fashion sales (The Business Research Company, 2024). In 2015, global online fashion retail sales were approximately $253 billion, representing about 14% of total fashion sales (Forrester, 2018). This indicates that digital penetration for the fashion industry has almost doubled over the past decade. This surge reflects a broader trend in e-commerce, with global online sales expected to surpass $8 trillion in 2028 according to Shopify (Shopify, 2024).

There are several factors that are contributing to the growth of online shopping. Convenience plays a key role, as customers are able to browse and purchase products anytime, anywhere, without the constraints of physical store hours. Moreover, the rise of mobile commerce and improved digital payment systems has made shopping more accessible than ever. As a result, fashion consumers are increasingly drawn to the flexibility and ease of shopping online, where they can explore a wide variety of styles, brands, and trends from the comfort of their homes. However, this shift towards e-commerce, while making fashion more accessible, has also introduced challenges that traditional retail experiences naturally overcome. One of the most significant hurdles is that online customers lack the guidance and interaction provided by a sales assistant in-store. In a physical store, shoppers can ask sales associates for personalised recommendations, detailed product information, or styling advice—an experience that is hard to replicate online. Additionally, customers cannot physically try on or touch the items, which makes it difficult to assess the overall fit, feel, and quality of clothing.

More often than not, this uncertainty leads to customers feeling unsure about the items, resulting in abandoned carts or the need to return products due to ordering the wrong size. On average, 26.4% of products purchased online are returned (Capital One Shopping Research, 2024). This suggests that nearly one in three online shoppers end up dissatisfied with their purchases. In a physical store, such a high return rate would be unacceptable, and sales assistants would be held accountable for not guiding customers effectively.

Beyond customer satisfaction, retail returns are also adversely affecting the environment. Every returned item contributes to additional carbon emissions from transportation and repackaging, while many unsellable returns end up in landfills, exacerbating fashion waste. A study from Optoro found that up to 24 million metric tons of CO2 emissions are attributed to returns each year with 9.5 billion pounds of returns sent to the landfills. As e-commerce continues to grow, addressing the issue of returns is becoming increasingly crucial—not just for businesses looking to reduce costs, but for the planet as well. Upon further investigation, according to a consumer survey conducted by the IPF, Roland Berger and Dynata, 93% of UK consumers cited incorrect sizing or fit as the primary reason for returning products, underscoring the need for solutions that can help enhance sizing accuracy and restore confidence in the online shopping experience.

Artificial intelligence: How AI can come in

Fortunately, as technology continues to advance, it also paves the ways for innovation aimed at improving the consumer experience. Artificial intelligence (AI), especially, is an integral part of this evolution, offering capabilities that were once considered impossible. With its large capacity to process and analyse data, AI is able to identify patterns, make predictions and deliver insights that significantly enhance the way businesses interact with consumers.

Investments in technology in the fashion industry has been increasing at a rapid pace. McKinsey’s State of Fashion Technology Report shows that fashion companies have decided to invest between 1.6% and 1.8% of their revenues in technology in 2021. The figure is expected to double within 10 years, rising to between 3.0% and 3.5% by 2030 (McKinsey’s State of Fashion Technology Report, 2022). This anticipated increase underscores the industry's commitment to leveraging technology for competitive advantage.

Further analysis from McKinsey reveals that fashion companies that integrate AI into their business models are projected to experience a 118% cumulative increase in cash flow by 2030. On the other hand, companies that delay their investments in digital technology may fall behind, with a potential 23% decrease in relative performance.

Furthermore, as China’s e-commerce giants, Shein and Temu, continue their rapid expansion in France, they highlight the growing need for technological innovation in online retail. Every month, 12 million French consumers place orders on Temu, and shipments from these two platforms now represent 22% of all parcels handled by the national postal service—a sharp rise from just 5% five years ago. Their success is largely driven by AI- powered personalisation, real-time data analytics, and seamless user experiences—setting new expectations for consumers. Now more than ever, European retailers must invest in digital innovation to stay competitive in an increasingly tech-driven market.

Ultimately, there is an urgent need for fashion companies to prioritize digital transformation in order to stay competitive. Those investing in artificial intelligence and other technologies are not only future-proofing their operations but also positioning themselves for substantial financial growth. Conversely, companies that delay may face diminishing returns and a weakening position in the evolving retail landscape.

Kleep

Kleep is at the forefront of this transformation. Founded in 2021 by computer science engineers Federico Fortis and Theophille Bosquet, Kleep harnesses the power of generative artificial intelligence to bridge the gap between virtual shopping and physical try-ons. Recognising the frustration amongst online shoppers, the founders–graduates from Mines Paris and ENS Paris-Saclay–set out to create a solution that would enhance accuracy and confidence in digital fashion purchases. This revolutionary solution comes in the form of a body scan technology and a quick customer survey to offer the best possible size recommendation powered by millions of proprietary data points.

The inspiration for this technology stems from the rise of social media platforms such as Instagram and Tiktok, where users have become increasingly comfortable with sharing photos of themselves. This shift in behavior aligns with a broader trend: customers are becoming more trusting of artificial intelligence, especially with the success of tools like ChatGPT, which has democratized access to advanced technology. No longer do shoppers feel the need to rely on human advisors for guidance; instead, they are turning to technology because it is faster, more efficient, and increasingly accurate in delivering results. What once may have seemed like a novelty or even a risk has now evolved into a seamless and trusted part of the shopping experience. The ease and immediacy of the process, combined with the personalization that AI provides, allow users to feel empowered, knowing that the recommendations they receive are tailored specifically to them. With Kleep’s body scan technology, users can experience this evolution firsthand, as the AI takes over the complex task of sizing, making it both easy and accurate.

Users’ perception

However, just like any new innovation, skepticism is inevitable. In the initial stages of user testing, many users expressed concerns about privacy. There was a degree of hesitancy in uploading their images and personal body information. This feedback underscored the importance of building trust and ensuring transparency in how data is handled. To address these concerns, Kleep prioritizes transparency and user consent. Before proceeding with the body scan, users receive clear information on how their data is processed and stored. Reassuring pop-ups and privacy notices are integrated throughout the experience, emphasising that Kleep’s technology is fully secure, compliant with data protection regulations, and designed to protect user privacy. By proactively tackling these concerns, Kleep aims to build trust and create a seamless, worry-free shopping experience.

Soon after Kleep was launched on dozens of Fashion brands’ websites, the trust began to grow steadily. For instance, at Lacoste – one of Kleep’s clients, there are approximately 25% of the website’s buyers who are utilizing Kleep’s technology, and this trend is consistent across all Kleep’s clients. The widespread adoption of Kleep demonstrates how users perceive this new technology: it’s not just an option but a highly demanded solution. A significant portion of the customer base, particularly engaged users, are using the tool to enhance their shopping experience. It is perceived as an essential feature on clients' websites, often contributing to higher engagement and improved buying intent. In fact, 96% of customers who use Kleep end up purchasing the size recommended, proving its effectiveness in guiding their purchase decisions.

This high level of user satisfaction and increased purchase confidence highlights how Kleep has become an integral part of the e-commerce experience. As more customers experience the accuracy and convenience of Kleep, its adoption will only continue to grow, reinforcing the shift towards data-driven, AI-powered shopping tools in the digital landscape.

How the interface guides them through the process

By using just two images of the users, front and side, Kleep’s body scan technology gathersdetailed information about their body. Leveraging advanced AI algorithms, the systemanalyzes these images to extract precise body measurements, accounting for various bodytypes and shapes. Complementing the body scan technology, a quick questionnairegathers additional details, such as users’ height and weight, to further refine the sizingrecommendation and ensure the most accurate fit.

Users only need to complete the process once. After the initial scan, the AI learns their precise size and preferences, enabling it to instantly know their size for any product they explore on the website. The AI tailors recommendations using a wealth of data, such as the user’s age, shopping preferences, purchase history, and location, ensuring highly accurate and personalized suggestions with every visit.

Interaction between traditional salespeople and Kleep’s AI: similarities and differences In physical retail, a salesperson draws on their personal experience, having worked with tens or hundreds of customers over time. Their ability to recommend sizes is based on intuition, direct interaction, and trial-and-error. This personal touch works well for many shoppers, but it is still constrained by the relatively limited experience of each salesperson.

Kleep’s AI technology replicates this personalized experience, but with a critical difference: it operates at a scale that human experience simply can not match. While a salesperson can draw from their interactions with hundreds of customers, Kleep's AI analyses millions of data points from a diverse, global pool of users. By processing data from a wide range of body types, fit preferences, and sizing trends, Kleep’s AI offers far more accurate size recommendations, tailored to each individual.

How Kleep’s solution helps businesses

For businesses, Kleep’s solution helps boost conversion rates by providing consumers with greater confidence in their purchases. When customers are confident that the items they select will fit properly, they are more likely to complete their purchase, leading to higher sales and improved revenue. Additionally, Kleep’s technology helps reduce the costs associated with returns and exchanges due to sizing issues, a significant pain point for many online retailers. More than 50 prominent brands have already integrated Kleep into their operations, including Kenzo (LVMH), Lacoste, Showroomprivé and The Kooples.

These brands have experienced notable improvements in customer satisfaction and operational efficiency with more than 30% reduction in returns and nearly 4 times boost in conversion. As a result, brands can potentially earn an annual return on investment of approximately 40x. This ROI is calculated based on a combination of reduced refunds, savings in return-related logistics, and the increase in sales driven by enhanced consumer confidence. By offering a reliable sizing tool, businesses can enhance customer loyalty and satisfaction,which in turn drives repeat sales and strengthens brand reputation.

The future of fashion retail

Artificial intelligence is transforming the way consumers purchase clothes, shifting the experience from traditional brick-and-mortar stores to seamless, data-driven online shopping. With advanced sizing recommendations, tailored product suggestions, and increasingly realistic try-on technology, shoppers can now make confident purchasing decisions without ever stepping into a fitting room. This transformation is only accelerating, as AI-driven solutions become more sophisticated and widely adopted. As virtual try-on technology continues to advance, the gap between digital and physical shopping will continue to close—redefining the future of fashion retail.