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Retailers embrace AI for predictive inventory management

Retailers, including Walmart, Walgreens, and ASOS, are turning to advanced artificial intelligence (AI) technology to navigate erratic consumer buying patterns during the pandemic. This sophisticated technology, analysing diverse data from weather to social media trends, aids in inventory placement decisions. Traditionally reliant on internal sales data for stock decisions, retailers aim to match supply with the unpredictable demand caused by changing consumer behaviors during the pandemic. Inventory imbalances and unforeseen demand shifts have prompted retailers to seek AI-driven solutions, moving beyond historical sales analysis. Retailers experienced fluctuations from cleaning supplies to office apparel, leading to excess unsold inventory. Amid rising inventory costs, retailers seek better forecasting tools, as seen with Walmart integrating weather forecasts and online searches into its inventory system. The utilisation of AI is key for retailers to efficiently manage inventory, adapt to shifting buying behaviours, and boost profitability amidst evolving consumer expectations.

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