How can AI improve the accuracy of demand forecasting?
AI can improve the accuracy of demand forecasting by leveraging advanced algorithms and machine learning techniques. By analyzing historical data, market trends, and external factors, AI models can identify patterns and make predictions with higher accuracy. The use of AI in demand forecasting helps businesses make more informed decisions, optimize inventory levels, and reduce costs by minimizing stockouts and overstocking. AI can also handle large and complex datasets, enabling businesses to incorporate various factors such as promotions, seasonality, and customer behavior into their forecasting models. Overall, AI empowers businesses to make data-driven decisions, improve customer satisfaction, and achieve better profitability.