Portuguese startup Smartex, supported by H&M Group, is using artificial intelligence (AI) to transform textile manufacturing and reduce fabric waste in the global fashion industry — one of the world’s largest and most polluting sectors.
AI Innovation Targeting Fashion Waste
Co-founded by Gilberto Loureiro, Smartex has developed an advanced AI-based fabric inspection system that uses high-resolution cameras and machine learning to identify defects in real-time during textile production. This proactive detection helps factories eliminate faulty fabric before it proceeds through the supply chain, resulting in significant material savings.
Over the past three years, Smartex reports it has saved more than 1 million kilograms of fabric, helping manufacturers improve both efficiency and environmental impact.
Fashion’s Waste Crisis: A Growing Global Concern
The global fashion industry, valued at $1.8 trillion, is a major contributor to environmental degradation. According to the Ellen MacArthur Foundation, a truckload of clothing is discarded every second. Additionally, nearly 85% of textiles end up in landfills, and textile dyeing contributes around 20% of global water pollution.
Despite decades of sustainability awareness, the fashion sector has been slow to adopt digital solutions due to fragmented supply chains and outdated manufacturing methods.
Overcoming Barriers to Tech Adoption
One of the biggest challenges Smartex faces is the textile industry’s historical resistance to adopting new technologies. Factory owners often demand fast, measurable ROI before considering digital upgrades — especially in a competitive industry known for tight profit margins.
Smartex’s AI solution directly addresses this with a 9 to 18-month payback period, offering clear savings in materials, energy, and operational costs. This short return timeline aligns with what manufacturers typically expect, increasing the likelihood of adoption.
Backed by Major Investors and Scaling Up
Smartex has raised $40 million in funding from leading investors, including H&M Group and Lightspeed Venture Partners. Their backing highlights the growing demand for scalable technology solutions that address fashion’s environmental footprint.
Loureiro’s long-term vision is to turn Smartex into a factory-wide digital operating system — a platform that integrates quality control, efficiency tracking, and sustainability metrics into one smart infrastructure. This aligns with global trends in smart manufacturing and industry 4.0, where AI and automation are revolutionizing traditional production environments.
A Greener, Smarter Future for Fashion
Smartex’s technology is not just about reducing defects — it’s part of a larger shift toward sustainable fashion innovation. By improving transparency and accountability across supply chains, Smartex enables manufacturers to minimize overproduction, reduce environmental damage, and meet rising consumer expectations for ethical products.
As the global fashion market pushes toward digital transformation, AI-driven companies like Smartex are leading the charge to make textile production smarter, cleaner, and more responsible.
