Colour forecasting is the practice of predicting and projecting future colour trends to fashion designers, manufacturers, and retailers. The integration of technologies like big data, AI, and ML to the colour forecasting process has facilitated real-time analysis and enhanced accuracy and efficiency. This study investigates the existing gap between the process of colour planning implemented by fashion firms as compared to the forecasting reports produced by colour forecasters. This qualitative and exploratory study was conducted in three phases—(1) a review of literature to assess the increasing use of AI in colour forecasting, (2) a semi-structured questionnaire with 40 fashion practitioners to gain insights into their colour planning process and determine the perception of colour forecasting firms active in India, (3) to evaluate the challenges faced by Indian colour forecasting firms and the potential application of AI through in-depth interviews of 8 colour forecasting practitioners. The findings revealed—(1) fashion firms plan their colour palettes based on strong socio-cultural research, (2) streamlining the colour forecasting process presents complex challenges in India owing to its cultural diversity, (3) the nexus of technology with human intervention is the future of colour forecasting. The study concludes that AI can help resolve the disconnect between forecasting reports produced by trend forecasters and the industry demands. However, the application of AI in colour forecasting is still in its nascent stage as the AI and ML practitioners in India are yet to fully explore this field.