Retailers are leveraging AI to sense demand in real time using POS data, social sentiment, weather trends, and supply chain signals. AI algorithms forecast demand at SKU level, reducing overstock, preventing out-of-stock occurrences, and optimizing shelf replenishment.
This post details implementations from fashion to FMCG companies, and how demand sensing improves both margins and customer satisfaction. It also covers challenges like data silos, cold starts, and GDPR compliance. For retail businesses, AI demand sensing is the difference between reactive and predictive replenishment.