This paper gives the readers insight into the intersection of fashion and Artificial Intelligence (AI) by providing a complete investigation on how AI is revolutionising the fashion industry. It critically assesses state-of-the-art AI models and methods used across various areas of fashion such as design generation, virtual try-on technologies and text-based customization of clothing images. The paper also covers recent advances in outfit generation and identifies key datasets that innovate in this field. With these observations, the main aim of this paper is to enable the readers to gain deeper insights into the transformative power of AI in relation to fashion and its potential applications too. The paper has the following sections which examine diverse sides of this ever-growing field - a general introduction giving foundations about AI terms of fashion, the second section describing different types or categories of algorithms employed by designers when using artificial intelligence models for creating clothes, the third discussing breakthroughs made so far concerning virtual fitting rooms; and addressing fresh ideas around customizing apparel images through texts. And lastly, this paper additionally explains how outfits can be produced automatically so that they appear compatible with each other perfectly based on colour schemes, styles etc.