Stitch Fix
AI + human stylists for personalized fashion sounded great but the model was too labor-intensive to scale.
2011 → 2024
$42M
E-commerce/Fashion
USA
IdeaProof AI Failure Score
Full Analysis
Stitch Fix combined AI algorithms with human stylists to send personalized clothing boxes to subscribers. The company IPO'd at $2.3B in 2017. But the hybrid model was expensive — human stylists were needed because AI alone couldn't understand fashion preferences. Revenue peaked at $2.1B then declined as customers churned. The stock fell 96% from its peak. While technically still operating, Stitch Fix has laid off half its workforce and is a shadow of its former self.
Could This Failure Have Been Prevented?
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