Blog: Application of Artificial Intelligence in Demand Planning
Artificial Intelligence is everywhere. It is creating a buzz in the industry with its arrival in recruitment and demand planning. Every sector today is aiming to deploy automation to make the machines work on tedious tasks and let the professionals do the rest. It is now disrupting demand planning in supply chain management.
Artificial Intelligence and Machine Learning together are improving demand planning which is meant to be the most promising applications of AI for supply chains. This AI integrated technology uses past experience to analyze the factors that influence product demand. Nevertheless, AI-enabled demand forecasting is still at a relatively early stage of development.
The power of AI and ML has changed the whole scenario as earlier with the increase of data, detection of customer purchasing patterns used to be a hard nut to crack. AI integrated technology has made this interpretation possible without the need for demand planners. Automation has opened a gateway to where the forecasting process is like a cakewalk. According to a McKinsey study, AI-enhanced supply chain management may lead to improved accuracy by reducing forecasting errors by 20–50%.