This study investigates the potentials and barriers to Artificial Intelligence (AI) adoption in the fashion industry of Ile-Ife, Osun State, Nigeria. The research was motivated by the growing importance of AI in enhancing fashion marketing, customer engagement, and operational efficiency. A survey of 120 randomly selected fashion designers was conducted to assess the extent of AI potential and challenges. Findings revealed a moderate level of AI adoption (46.7%), with tools such as predictive analytics, virtual try-ons, and AI-driven marketing identified as having the potential to transform business practices. Fashion designers acknowledged the ability of AI to enhance customer experiences, strengthen brand visibility, improve inventory management, and support sustainability. Despite these opportunities, financial constraints (30.8%) and limited awareness (35.8%) emerged as the primary challenges. The study recommends targeted training programs in partnership with educational and technological institutions to strengthen designers.