An Executive Voices Blog by Simran Bhatia, Brand Licensing Technologist at Isaac Morris Ltd

Artificial intelligence is no longer just a buzzword—it’s becoming a powerful force behind how licensed consumer products are imagined, made, and sold. From optimizing supply chains to powering personalized merchandise, AI is helping brands operate faster, smarter, and more in tune with what consumers want.

In fast-moving categories like kidswear and seasonal collections, timing is everything. AI tools can analyze past sales, spot trending characters, and forecast demand more accurately than ever before. This means companies can make better decisions about how much to produce, where to ship it, and when to launch. For instance, if Bluey is trending ahead of back-to-school, AI can recommend producing more themed backpacks and t-shirts in specific regions and deliver them at just the right time. What used to be guesswork is now guided by real-time data and predictive insights.

AI also improves how brands communicate across the supply chain. Manufacturers, suppliers, and retailers can respond more quickly to changes, keeping launches on schedule—which is especially important for short-lived windows like movie releases or holiday drops.

Beyond logistics, AI is transforming product quality. With tools like computer vision and smart sensors, manufacturers can detect color mismatches, stitching errors, or incorrect labeling before items leave the factory. These systems work faster and more accurately than human inspections, reducing waste, saving time, and increasing customer satisfaction.

AI also supports brands’ growing focus on sustainability. By helping companies produce only what’s needed, reduce excess inventory, and cut down on shipping inefficiencies, AI-driven systems contribute to lower emissions and less waste. In an industry under pressure to be more eco-conscious, this is a meaningful shift.

At the same time, personalization has become a major priority. Consumers today want products that feel uniquely theirs, whether it’s a water bottle featuring their favorite character or a custom sports jersey with their name on the back. AI makes that level of personalization possible at scale by analyzing shopping behavior, preferences, and browsing patterns to suggest tailored options and streamline the customization process.

Some brands already use AI-powered design tools on their direct-to-consumer platforms, letting users tweak designs, colors, and features in real time. But this is only the beginning. The next evolution of DTC could be fan-led co-creation where users help design the product itself, not just customize it. AI-assisted platforms could allow fans to build, refine, and even market their own versions of licensed merchandise. And if those designs are successful, creators could be rewarded with credit, recognition, or even revenue. This is what the new DTC could look like—fans as collaborators, not just customers.

Of course, as with any emerging technology, there are risks. Companies must ensure that AI tools are ethical, secure, and aligned with brand values. Personalization tools must protect user data. AI-generated content must stay on-brand and avoid bias. And when fans co-create designs, clear rules are needed around ownership, approvals, and compensation.

This means brands need to develop strong internal policies and build safeguards into their systems. Teams must be trained to monitor and guide AI tools, ensuring there’s always a layer of human judgment in the loop.

Licensing agreements will also need to evolve. Future contracts may include language that covers how AI tools can be used, from setting quality standards driven by machine learning to defining co-creation rights, sustainability metrics, or restrictions on generative design tools. They may also need to address data use, content ownership, and responsibilities across the brand-licensing relationship.

What’s clear is that AI is more than just a tool—it’s changing how companies think about creativity, consumer engagement, and brand value. Instead of simply selling products, brands now have the chance to invite fans into the creative process, making the experience more personal, inclusive, and collaborative.

With the right strategies in place, AI can help licensed products become not only smarter and more sustainable, but also more connected to the people who love them.

Simran Bhatia is a Brand Licensing Technologist at leading apparel and accessories company Isaac Morris Ltd. She is a forward-thinking brand strategist who blends AI, licensing, and market insights to drive innovation. Working closely with cross-functional teams, she builds smart tools that simplify workflows and support better decision-making. Her focus includes optimizing brand partnerships, leading data-driven negotiations, strengthening licensor relationships, and tracking consumer and cultural trends to uncover new opportunities and keep brands ahead of the curve.