Digital Brands Group Unveils AI‑Powered Brand Protection Suite, Aiming to Diversify Revenue Amid Financial Challenges

DBGI
December 22, 2025

Digital Brands Group announced a new AI‑driven brand protection suite that integrates SECUR3D’s AssetSafe™ platform, enabling real‑time detection of counterfeit products, copied designs, and trademark misuse across e‑commerce marketplaces and social media channels.

The platform will monitor marketplaces and social channels, issuing alerts and automating enforcement actions. By embedding the technology into its own portfolio and offering it to external partners, the company seeks to create a scalable, technology‑enabled service that complements its apparel and wholesale operations.

The announcement follows a recent partnership with Herschel Supply Co., which saw the AssetSafe platform deployed to protect the brand’s intellectual property. The Herschel deal generated a 12.7% surge in Digital Brands Group’s stock on December 16, 2025, underscoring investor interest in the technology’s commercial viability.

While the company did not disclose immediate financial figures for the new suite, management emphasized that the platform will generate revenue through subscription fees and revenue‑sharing arrangements with partners. CEO Hil Davis said the initiative “will help brands protect their identity, maintain consumer trust, and operate more securely in digital environments.”

Digital Brands Group’s Q3 2025 results showed net revenues of $1.65 million and a net loss of $3.45 million, reflecting ongoing challenges in its core apparel business. The new technology initiative is positioned as a critical lever to offset declining margins and create new profit centers, but analysts remain cautious, citing a consensus “Sell” rating and a lack of concrete guidance on the suite’s monetization.

The company’s strategic pivot to a technology‑centric model signals a shift from a traditional apparel retailer to a platform that can scale across multiple brands. Success will depend on the ability to attract high‑profile partners, demonstrate the platform’s effectiveness in reducing counterfeit activity, and translate usage into recurring revenue streams.

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