Ep 6. AI for Zero Waste Fabric, Sustainability and Traceability in Textile Factories with Gilberto Loureiro

Key Points

• Gilberto Loureiro, co-founder and CEO of Smartex, uses AI and machine learning to address inefficiencies and waste in textile factories, particularly in circular knitting.
• The textile industry is largely disconnected from modern technology, relying on manual processes like pen-and-paper record-keeping, which hinders automation and traceability.
• Smartex's solution includes a three-part system: Core (real-time defect detection with cameras), Fact (a digital dashboard for factory management), and Loop (QR codes for traceability across the supply chain).
• Gilberto emphasizes the importance of mentorship, continuous learning, and humility in entrepreneurship, citing investor Tony Fadell as a key mentor.
• The company has grown rapidly, raising $40 million in funding and expanding to 150 employees, with a mission to modernize textile production and enhance sustainability.

Summary

In this podcast episode, Gilberto Loureiro, co-founder and CEO of Smartex, discusses his journey to revolutionize the textile industry through AI and machine learning. Growing up in a Portuguese textile hub, Gilberto witnessed firsthand the manual, inefficient processes in factories, such as pen-and-paper record-keeping and human quality inspections, which led to significant waste. Despite initially vowing to leave the industry, he returned with a mission to modernize it after recognizing the potential of emerging technologies in 2016–2017.

Gilberto explains that the textile industry remains largely disconnected from digital advancements, creating a gap between high-tech fashion brands and outdated factory operations. Smartex addresses this by targeting circular knitting factories with a three-part solution: Core uses cameras to detect fabric defects in real time, stopping machines to prevent waste; Fact provides a digital platform for monitoring production, machines, and workers; and Loop employs QR codes to ensure traceability and compliance across fragmented supply chains. This integrated approach aims to create "modern textile factories" that are connected, efficient, and sustainable.

The conversation also highlights Gilberto's entrepreneurial insights, including the importance of mentorship—notably from investor Tony Fadell—and a mindset of continuous learning and humility. Smartex has seen rapid growth, raising $40 million in funding and expanding to 150 employees, while claiming to have saved over 961,000 kilograms of fabric waste. Gilberto's passion for textile engineering and commitment to reducing environmental impact underscore his vision of transforming an industry that is critical yet historically resistant to change.