The Role of Artificial Intelligence in Optimising Retail Inventory Management

Abstract

This review paper examines how Artificial Intelligence (AI) is transforming retail inventory management with predictive analytics, machine learning algorithms, and automation. Drawing on the results of four articles, the review examines AI-facilitated enhancements in demand forecasting, inventory optimization, supply chain integration, and reordering automation. The study also examines challenges and strategic implications of leveraging AI in the retail industry. The study establishes the premise that not only does AI enhance forecasting accuracy and response time, but it also supports lean inventory practices, scalability, and real-time responsiveness. With the help of AI, retail firms try to realign their inventory to achieve its full potential.