Abstract Generative Artificial Intelligence has had a huge impact in the fashion industry. The rapid development of AI has opened new opportunities in recent years. However, a lot of small to medium size enterprises face obstacles to properly integrate GAI and seem to lack technical knowledge and experience. This study aimed to identify these challenges and understand the role of GAI across multiple companies in the fashion industry. Existing research primarily focused on consumer perceptions of AI, while there was less exploration of how SMEs in the fashion sector utilize and take advantage of GAI and how it impacts financial growth and marketing activities. The purpose of this study is to see how GAI affects marketing strategies and how it influences marketing performance and business growth for fashion SMEs. A qualitative research approach was used with a total of 7 participants interviewed who are heavily involved in the fashion industry. The collected data was categorized into different color themes and analyzed. The findings showcased that the main usage for GAI came for content creation, social media marketing, workflow efficiency, customer engagement, and automation of repetitive tasks. Benefits such as improved efficiency, reduced costs, increased engagement, and stronger marketing consistency were reported by participants. However, limited technical expertise, uncertainty about return on investment, and concerns regarding authenticity and creativity were some of the barriers identified. This study concludes that generative AI can be used to strategically improve marketing performance and support financial growth. It should be stated that GAI cannot replace human creativity and brand identity, but it can be used as a valuable support tool that significantly impacts the trajectory of efficiency, scalability and marketing operations. The research provides practical insights for fashion SMEs and contributes to the growing literature about GAI adoption.