Gap and H&M Use AI to Manage Supply Chain Risks

Apparel retailers like Gap and H&M are adopting AI to map and trace multi-layered supply chains, driven by tightening US and European regulations requiring detailed compliance documentation. This shift aims to reduce manual reporting time from days to about an hour. The new rules, including US extended producer responsibility policies and Europe's digital product passports, demand proof of factory audits, water usage, and carbon emissions. AI platforms help brands surface hidden risks like forced labor, floods, and geopolitical disruptions faster, with companies like ASOS tracing supply chains to the farm level. While large retailers like Target publish detailed supplier lists, most brands lag in full traceability. AI also automates compliance tasks, such as building chain-of-custody records and generating reports, cutting a process that previously took at least 30 hours per purchase order down to roughly one hour.