How to Use AI for Demand Forecasting in Retail?
Retail is no longer just about stocking products and waiting for customers to buy them. Modern retail success depends heavily on predicting what customers will want, when they will want it, and where they will buy it. This is where AI-driven demand forecasting is transforming the industry. Instead of relying on historical averages or manual predictions, retailers are now using advanced algorithms to anticipate demand with far greater accuracy. Accurate forecasting helps businesses reduce overstocking, prevent stockouts, improve supply chain efficiency, and ultimately increase profitability. In this guide, we will explore how retailers can use AI for demand forecasting and why it has become a critical capability for competitive retail operations. Why Traditional Demand Forecasting Falls Short? For decades, retailers relied on spreadsheets, basic statistical models, and past sales reports to predict demand. While these methods worked in relatively stable markets, they struggle i...