Bangladesh’s garment industry embraces AI, raising concerns of job loss
AI technology has also allowed the fashion supplier, which employs about 10,000 workers, to dismiss dozens of human quality inspectors
Bangladesh is the
world’s second-biggest garment exporter
By Eastern EyeNov 14, 2024
IN THE industrial town of Rupganj outside Dhaka, clothing manufacturer Fakir Fashions is using artificial intelligence to automatically pause production and avoid waste when something goes wrong in its knitting operations.
AI technology has also allowed the fashion supplier, which employs about 10,000 workers, to dismiss dozens of human quality inspectors, said managing director Fakir Kamruzzaman Nahid.
Suppliers and brands across the $1.7 trillion (£1.3t) global fashion industry are beginning to use AI technology, such as in cameras and sensors that detect defects, to boost production and to reduce their environmental impact, including by monitoring emissions and water use.
The sector is responsible for between two per cent to eight per cent of global greenhouse gas emissions that cause climate change. It is also one of the world’s major polluters of water sources and produces vast amounts of waste that wind up in landfills.
While AI could help improve the apparel business’ environmental track record, it also poses a threat to some of the 75 million jobs in the labour-intensive industry worldwide, already under pressure from other forms of automation.
“We know what is coming on fashion’s AI front - and if workers do not get to have a say about how it impacts them, they are at a disadvantage as a class,” said Christina Hajagos-Clausen, textile and garment industry director at IndustriALL Global Union, a Geneva-based global federation of unions.
Most global fashion brands are looking at how generative AI can improve their businesses, with 73 per cent of executives saying in a survey by consulting firm McKinsey that they consider AI a priority in the coming years.
While there is no comprehensive research into AI’s potential to reduce the industry’s emissions, a few studies offer clues at how it might help. For example, using digital samples of clothes before going into production could cut carbon dioxide emissions by 30 per cent in the design and development of clothes.
In Bangladesh, the world’s second-biggest garment exporter, about 60 per cent of apparel workers, or 2.7 million people, risk losing their jobs due to automation including AI, according to the International Labour Organization.
But some experts believe the textile industry will still need human labour, especially for complex, high-skilled work.
“The influence of AI on jobs is a million-dollar question that we are all pondering, and my wager is that AI in fashion will complement rather than replace humans,” said Shahriar Akter, professor of analytics and innovation at Australia’s University of Wollongong. While Fakir Fashions reduced its quality control workforce after bringing in AI, Nahid said the money it saved on those wages and on the hundreds of kgs of waste the tools prevented will enable it to expand operations – and add new jobs.
“To stay competitive, we need to cut costs and adopt new innovations. But better tools also will bring us business and make up for the job losses,” he told the Thomson Reuters Foundation.
Sweden’s H&M Group, the world’s second-largest clothing retailer, has said it is investing in AI tools to recycle post-consumer waste and reduce deforestation by fashion manufacturers.
The pace of AI adoption, and automation in general, varies across the textile industry.
In Bangladesh, companies still largely rely on manual labour to sew and stitch clothes, but fully automated machines that knit sweaters have already drastically cut jobs.
Yousuf Jamil, who works at a sweater factory in the town of Gazipur, said he oversees six machines and accomplishes what a dozen people could do manually. But he receives the same pay as a worker weaving a T-shirt.
“The fashion industry needs a comprehensive plan for reskilling workers, either for keeping their jobs within the industry or transitioning to other jobs in the coming years,” said Amirul Amin, president of the National Garment Workers Federation (NGWF) of Bangladesh.
The US-based startup Shimmy Technologies works with brands and nonprofit organisations, including H&M and the development organisation Asia Foundation, to provide workers with gamebased training apps that teach them how to operate new machines at factories in Bangladesh and Central America.
“In this world of AI, there will be a need for constant upskilling, and you cannot meet that need at scale by providing classroom-based training alone,” said Sarah Krasley, who founded Shimmy Technologies in 2016.
While low-skilled jobs are most at risk, the growing use of AI in the textile industry will create demand for better paid engineers and technicians, said AI engineer Zahid Hasan, who works with local fashion suppliers in Bangladesh.
As apparel workers in Bangladesh and else where brace for the impact of AI on their livelihoods, Akter of the University of Wollongong said now is the critical time to prepare for the inevitable disruption ahead.
“We are still on the cusp of the AI revolution in the fashion industry, and we need strategies to harness the power of AI to benefit workers and the environment,” said Akter. (Thomson Reuters Foundation)
India's finance minister Nirmala Sitharaman said the Goods and Services Tax (GST) structure would be simplified from four slabs to two, with reductions across several sectors. (Photo: Getty Images)
INDIA announced a major cut in consumption taxes on Wednesday, days after the United States imposed steep tariffs on Indian goods.
India's finance minister Nirmala Sitharaman said the Goods and Services Tax (GST) structure would be simplified from four slabs to two, with reductions across several sectors. In some cases, levies have been reduced by more than half.
The tax changes will make a range of consumer goods, including soap bars and motorbikes, cheaper. However, the move could add pressure on government finances.
The announcement comes after US president Donald Trump imposed tariffs of up to 50 per cent on imports from India, raising concerns of a slowdown.
Sitharaman said the GST cuts were not linked to the tariff issue. "These reforms have been planned for a long time," she said.
India's prime minister Narendra Modi welcomed the measures. "The wide ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses," his office said in a social media statement.
The revised system removes tax on insurance premiums, including life and health coverage. Levies on motorbikes and small cars have been reduced from 28 per cent to 18 per cent.
A finance ministry note also said dozens of life-saving drugs will now be tax exempt.
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Jio Platforms includes India’s largest telecom operator, Reliance Jio Infocomm, with more than 500 million users. (Photo: Reuters)
RELIANCE Industries plans to take its telecom and digital arm, Jio Platforms, public by mid-2026, chairman Mukesh Ambani said on Friday. The announcement sets a new timeline for the long-awaited IPO of a business analysts value at over $100 billion.
At its annual general meeting (AGM), Reliance also announced the launch of an artificial intelligence unit in partnership with Google and Meta.
Ambani had first indicated plans in 2019 to list Jio within five years. On Friday, he told shareholders the company is preparing to file for an IPO next year.
Reuters reported in July that Jio decided against launching an IPO in 2025. Analysts at the time valued the company at over $100 billion.
Jio Platforms includes India’s largest telecom operator, Reliance Jio Infocomm, with more than 500 million users. Backed by investors such as Meta, Google and KKR, the business is central to Ambani’s move to diversify Reliance beyond oil and chemicals into retail, consumer and technology. AI and international expansion are now key areas of growth.
Reliance is also investing $8.8 billion in its chemicals business. It expects retail to grow sales by nearly 10 per cent a year on a like-for-like basis and plans to add 2,000–3,000 new stores annually.
“Jio is not being fully valued within Reliance's broader petrochemicals and retail portfolio, and a separate listing would help unlock higher value for the telecom and digital unit,” said Saurabh Parikh, senior analyst at ICRA Ltd.
AI Unit with Meta and Google
Reliance and Meta announced a new AI joint venture with an initial investment of around $100 million. Meta CEO Mark Zuckerberg told the AGM the venture will provide Meta’s open-source AI models to Indian businesses.
Google will partner with Reliance to deploy AI across energy, retail, telecom and financial services. It will also set up a Jamnagar Cloud region dedicated to Reliance, Google CEO Sundar Pichai said at the meeting.
The partnerships come as India-US relations face tensions following US President Donald Trump’s decision to impose 50 per cent tariffs on Indian exports in response to India’s purchase of Russian oil.
Reliance runs the world’s largest refining complex in Gujarat and is India’s biggest buyer of Russian oil.
(With inputs from agencies)
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Asda sales fell 0.2 per cent in the three months to June 30, 2025 (AFP via Getty Images)
THE chairman of Asda has admitted the supermarket chain still faces challenges after sales slipped again over the summer, but said the completion of a major IT overhaul was crucial for its recovery.
Allan Leighton told the Times that the long-delayed technology project, called Project Future, had finally been finished after years of setbacks and costs exceeding £1 billion. The work involved separating more than 2,500 systems inherited from former owner Walmart, following Asda’s 2021 takeover by TDR Capital.
Describing the programme, he said it might be “the biggest IT systems change, certainly in Europe, maybe ever”. He added: “The cost is material, but largely that is now behind us.”
The supermarket acknowledged that the switchover had caused “temporary disruption with product availability” both online and in stores, which would weigh on sales through to September.
Leighton explained: “We’ve been doing 50 stores a week, every week, for 10 weeks. The collective scale of that does cause some friction… so that’s where the impact has been.”
Leighton, who rejoined Asda last November after previously leading the business in the 1990s, has focused on price cuts and improving stock levels. He said he did not expect “any miracles” but stressed that completing the IT work and reducing distractions was “very critical” for the turnaround.
Asda has been pouring money into a Rollbackprogramme of price reductions to compete with Tesco, Sainsbury’s and the fast-growing discount chains Aldi and Lidl. The grocer said its average reduction under the scheme was about 22 per cent.
He also voiced concern about government policy, warning that chancellor Rachel Reeves’s approach could push up prices. “There’s no doubt all of this is hitting the pocket of the consumer. And when that happens, that’s not particularly good for anybody. I think there’s more gloom than we’ve seen for a long time,” he was quoted as saying. He added that Reeves risked driving up food bills by “taxing everything in some way shape or form.”
Sales at Asda fell 0.2 per cent in the three months to June 30, excluding fuel, while turnover edged down to £5.3bn. Earlier in the year, sales had fallen nearly 6 per cent.
Data from research firm Kantar showed the supermarket’s market share dropped further over the summer, with sales down 2.6 per cent. Aldi is now close to overtaking Asda as the UK’s third-largest grocer.
Leighton pointed to other parts of the business as bright spots. George, Asda’s clothing and homeware arm, posted 2.5 per cent like-for-like growth, while its convenience format Asda Express rose 8.6 per cent, outpacing the wider market. “We’re more than just a supermarket,” he said, highlighting its clothing stores, cafés and opticians.
Retail analyst Clive Black of Shore Capital said, “Asda’s Q2 performance is not yet at a stage of putting up the bunting, but we are pleased to see for all those in Leeds the signs of improvement, which we anticipate will now follow through into forthcoming quarters.”
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A logo is pictured outside a Jaguar Land Rover new car show room in Tonbridge, south east England. (Photo: Getty Images)
UK VEHICLE exports to the United States rose in July after a new trade deal between London and Washington reduced tariffs, industry data showed on Thursday.
According to the Society of Motor Manufacturers and Traders (SMMT), exports increased 6.8 per cent in July to nearly 10,000 units, following three consecutive months of decline.
The SMMT had earlier reported that exports to the US dropped 55.4 per cent in May compared with the same month last year, with smaller falls recorded in April and June.
"The US remains the largest single national market for British built cars, underscoring the importance of the UK-US trade deal, and July's performance illustrates the impact of this deal," the SMMT said.
The agreement, finalised in May and effective from June 30, cut tariffs on UK car exports to 10 per cent on up to 100,000 vehicles a year.
In April, US President Donald Trump had imposed a 27.5 per cent tariff, reducing demand and forcing manufacturers, including Jaguar Land Rover (JLR) and Aston Martin, to scale back or suspend shipments.
Almost 80 per cent of cars made in the UK last year were exported, mainly to the European Union.
The UK auto industry is largely made up of foreign-owned brands such as Japan’s Nissan and India-owned JLR.
The US is also a major market for UK-produced luxury models from Bentley and Rolls-Royce, both owned by German groups.
THE family of Christian Michel, the British businessman accused of acting as a middleman in the AgustaWestland VVIP helicopter deal, has appealed to the UK government to push for his release from Delhi’s Tihar Jail.
Michel’s relatives met Foreign Office minister Catherine West in London on Tuesday (26). The Foreign, Commonwealth and Development Office (FCDO) said the minister listened to their concerns and updated them on ongoing steps being taken.
The case was also raised by prime minister Keir Starmer with his Indian counterpart, Narendra Modi, during his recent visit to London for the signing of the India-UK free trade agreement.
“The UK government is committed to seeing Christian Michel’s case resolved as soon as possible,” an FCDO spokesperson said. “We continue to provide consular assistance to Mr Michel and his family and have consistently raised his case with the Indian government.”
British officials at the High Commission in Delhi regularly meet Michel in detention, most recently on August 14.
Michel’s son, Alois, said: “An Indian court has recently rejected my father’s appeal for release from prison, even though he has already served the maximum sentence of seven years for the charge on which he was extradited. I have requested the UK government to approach the International Court of Justice because India is not respecting its obligation to the rule of law.”
Indian courts have ruled that Michel still faces charges, including forgery, which could carry a life sentence. He was extradited from Dubai in December 2018 and arrested by the CBI and Enforcement Directorate (ED).
The ED claims Michel received £25.8 million in kickbacks from AgustaWestland, allegations he denies. According to investigators, the helicopter deal signed in February 2010 caused losses of around £341m to the Indian exchequer.
In February this year, the Supreme Court of India granted Michel bail in a CBI case, followed by a Delhi High Court order granting bail in the ED case. However, he has yet to furnish bail bonds. His family fears that accepting bail terms may lead to further charges.