How Otrium uses AI for robotics and content creation

AI is rapidly conquering the fashion industry. While one company waits, another takes the lead.

Outlet platform Otrium uses artificial intelligence both behind the scenes in its warehouses and on the front lines of generated AI content. Co-founder Milan Daniels explains how this has made the company faster, smarter and more customer-focused. He also talks about future opportunities.

1. How do you view AI? What does Otrium use artificial intelligence for?

As a company, we are passionate about the possibilities that AI brings. Development is progressing rapidly. It’s important for us to test, learn, and expand what works.

We are currently leveraging AI in two ways. Our warehouses use robotics and automation, including Autostore, an automated pick-and-pack machine that uses AI to calculate the fastest route to collect orders. This reduces costs and speeds up customer response.

Additionally, we use generative AI to provide images of products that do not receive photos of the product or model. This improves presentation and increases conversions. We’ve been doing this for about four months. We introduced robotics and AI to our logistics processes earlier this year in April.

2. Please tell me more details. First, how did we bring automation and AI to our warehouses?

The implementation of automation and AI in our warehouses is technically very demanding and requires collaboration. We did this in collaboration with our fulfillment partner Bleckmann. Kardex, the party controlling the machine. And the auto store itself. The four parties worked together to prepare the installation. We have decades of experience doing this, and Kardex and Autostore do this as well as many other companies.

For us, the key is to get involved at the right time. This was a significant investment, but it was only possible because we reached a scale that made economic sense. That was a milestone for us.

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3. How has AI-powered warehouses impacted your operations? What has it brought to you?

The difference is huge. The workforce has been reduced by 70%, increasing production capacity and requiring fewer staff. It’s also a good thing that warehouse staff have fewer repetitive tasks to perform and, as mentioned above, can serve customers more quickly.

Then there are efficiency gains. The money saved is invested in better services and marketing budgets. This further increases profitability.

In addition to the ordering machine, there is also a machine called Genesis that packs boxes. A plastic bagging machine that automatically packs products into plastic bags will also be introduced soon.

At the same time, every system has its own learning curve. Working with people comes with its challenges, and the same applies to robots. In some cases, it may stop and require a restart. Part of it is its vulnerability and technical complexity.

4. How have you used GenAI and what benefits have you had?

Otrium works with 250 brands and receives 5 million items of inventory annually. In some cases, the model’s photo may not be found or you may not have the rights to use it on third party platforms like ours. Because we primarily deal with residual inventory, the depth per SKU (unique item, edition) is often small. For this reason, it used to be unprofitable to arrange expensive photographs. However, without model photos, products cannot be sold. Thanks to GenAI, we can provide this cost-effectively and improve your presentations.

We now also create inspirational images and campaigns in-house, including targeted newsletters. While traditional fashion brands work with the seasons, we handle products that are constantly changing. GenAI allows you to quickly build content around them. It would never have been possible to do this manually at this scale. Customer response to this has also been very positive.

5. What will AI demand from employees? GenAI also has its own challenges…

The challenge with GenAI is that new tools and services are emerging all the time. This causes a lot of movement and some confusion. If you invest in one solution, a month later there might be a new version or alternative that works 10 times better and is part of a larger suite like Google Gemini.

This requires great flexibility from our team. It means constantly reevaluating which tools are best suited for what you want to create, rather than sticking to one solution. This is very different from before, when you would choose one SaaS solution and use it for years.

6. Where do you see the biggest opportunities for AI in the future?

There are several directions in which we see a lot of potential. Size is very important. Of course, not only for us, but also for the entire fashion industry. With the help of AI, the sizes can be made more uniform. Also consider learning from returns and providing better sizing advice to your customers.

The second one is the video. The photo of the model is currently static, but when it becomes a video it will have new features such as being able to rotate and zoom in. This brings the online experience several steps closer to the physical shopping experience.

7. Do you have any advice for other fashion companies regarding AI?

We don’t like telling others what to do, but we can share our experiences. Otrium started developing an AI lookbook early on, even though it didn’t seem very convincing at the time. We knew it would get better soon. My lesson is that you don’t have to wait until something is perfect. Start with AI at the right time and grow with it. Latecomers risk falling behind and missing out on competitive advantages.

Otrium recently launched a new field: beauty. The company is once again active in the UK and is now supplying the market directly from its main warehouse in Almelo.

Does your company use AI for design, logistics, or inventory management? Share your experience with our editorial team and let us know at tip@fashionunited.com.

source:
– Interview with Milan Daniels, co-founder of Otrium, September 22, 2025.
– AI tools for transcribing interviews and using them as a writing aid.

This article was translated into English using AI tools.