Ordering too much stock wastes money and goods, while ordering too little loses sales. AI demand forecasting studies past sales, seasons, promotions and other factors to predict what will sell and when, helping businesses stock the right amount in the right place.
Better forecasts mean fewer empty shelves and less waste, which matters especially for perishable goods. The predictions depend on data quality and can be upset by unexpected events, so human planners review and adjust them rather than following blindly. As an aid to a difficult balancing act, demand forecasting has become a quietly valuable use of AI in retail.