Exploring the Impact of Artificial Intelligence on the Development of Demand Forecasting Systems for Retail Businesses

Abstract

This study aims to investigate how artificial intelligence (AI) influences the development of demand forecasting systems in retail businesses, identifying the benefits, challenges, and opportunities presented by AI technologies. A qualitative research design was employed, using semi-structured interviews as the primary method for data collection. Participants included 20 managers and experts in the fields of retail and information technology, selected through purposive sampling. Five main themes were identified: the use of AI in demand forecasting, challenges in implementing AI, opportunities created by AI, effects on organization and strategy, and social and ethical impacts. AI was found to enhance demand forecasting accuracy, operational efficiency, and customer satisfaction. However, technical, organizational, and financial challenges were also noted. Despite the challenges associated with AI implementation, the study concludes that AI has a significant positive impact on improving demand forecasting and overall retail business performance. Retailers are encouraged to embrace AI technologies to stay competitive in the rapidly evolving market.