In recent times, there has been significant interest in incorporating artificial intelligence (AI) in the fashion and apparel industry, as it has the ability to bring about significant transformations across different aspects of the sector. This comprehensive review offers a systematic examination of current AI applications in fashion, and discusses implications and future opportunities. The study investigates AI uses in the sector, with a focus on virtual try-on technology, personalized recommendations, AI-driven design and supply chain optimization. This analysis explores the benefits and constraints of these applications, and is supported by real-world case studies showcasing successful deployments. The review examines how AI influences consumer insights and market trends, and highlights the effectiveness of sentiment analysis and social media monitoring as tools for understanding consumer preferences and the shaping of brand perception. It also emphasizes AI's role in analysing market trends, enabling the identification of emerging fashion trends through AI-driven market research tools. This study provides a glimpse into future possibilities and advancements AI can introduce to fashion, including potential integration with augmented reality (AR), innovative applications in fashion shows and events, and the potential to revolutionize traditional business models. This review consolidates primary findings on the introduction of AI in the fashion and apparel sector, and emphasizes AI's potential to enhance consumer experiences, sustainability practices and market efficiency.