Economic Efficiency of AI-Based Virtual Try-on Technologies in Enhancing Digital Marketing Strategies in the Fashion Industry

The article assesses the economic efficiency of artificial intelligence (AI)-based virtual try-on (VTO) technologies in the fashion industry. A conceptual model was developed based on technology acceptance theory, research on mental imagery and telepresence, literature on product fit uncertainty, and the economics of consumer returns. Formulas for incremental profit, net present value, return on investment (ROI), and payback period were proposed for an online fashion retailer. Parameters were drawn from published sources or explicitly labelled as scenario assumptions. In the base scenario, the three-year net present value reached USD 38.6 thousand, and ROI was 19.3%. The break-even conversion uplift was 7.2%, while the break-even reduction in the return rate was 14.1%. In categories with high return rates, most of the economic value was generated by a reduction in returns. Five research propositions and managerial recommendations for fashion brands in Uzbekistan were formulated.