What Happens When AI Helps Retailers Think Long Term?

Forbes

11 hours ago

Gurhan Kok founded invent.ai in 2013 to create advanced inventory planning solutions for retail.
Retailers today are sitting on more data than ever before—from point-of-sale transactions and supply chain movements to online behavior, weather shifts and economic signals. Yet, even with all this information, many decisions still come down to gut instinct, outdated rules or disconnected systems.
The problem isn't a shortage of data. It's the lack of a consistent, reliable way to turn that data into meaningful decisions. That's where AI can reshape retail by introducing structure and speed to the decision-making process. AI enables retailers to forecast more accurately, adapt faster and optimize performance with greater consistency.
However, as AI becomes embedded in everyday workflows, an important question is being raised: 'How do we make sure these decisions aren't just faster but better?'
Embracing Long-Term Retail Strategy
For many retailers, AI has meant quick wins like faster inventory replenishment, real-time pricing changes and automated forecasting. Although these benefits remain important, the real power of AI lies in helping retailers move from reacting quickly to planning ahead. With AI-powered insights, retailers can predict demand changes before they happen, adjust supply chains to avoid issues and make better product choices that match what customers want.
Our client, Alo Yoga, for example, uses AI-powered forecasting, allocation and replenishment to drive revenue and boost in-stock rates while maintaining the same inventory levels. Another client, Five Below, also uses AI and advanced analytics to forecast demand and optimize inventory by region. This helps ensure that the right products are in the right stores. This long-term thinking helps businesses improve revenue and become more resilient against market fluctuations.
Additionally, AI encourages teamwork across departments. When marketing, merchandising, supply chain and finance teams work from the same AI-driven information, their decisions become more coordinated and support the company's overall goals. This creates a culture where data-driven planning is the everyday standard.
Combining Human Insight With AI Power
AI can make decisions on its own, but that doesn't mean people should be left out. Human input matters—not to override AI but to understand how and why decisions are being made. When teams can see what's behind AI-driven recommendations, they can step away from manual guesswork and focus on the bigger picture. That shift opens up space to plan ahead, connect decisions to company goals and take on initiatives that move the business forward.
The most effective outcomes often happen when people and AI work together. AI spots trends, identifies risks and presents options at a speed no team could match. Then, people bring in real-world knowledge, creativity and a broader sense of context to choose the right direction. This joint effort leads to faster and more balanced decision making.
At Target, inventory managers and planning teams use a machine-learning system to anticipate stock shortages well before they become visible in stores. By factoring in lead times, transportation costs, current inventory and regional demand patterns, the system makes billions of weekly predictions, helping Target improve product availability year after year. This data-driven approach has given Target the ability to reduce stockouts and manual planning.
Of course, for AI to truly make a difference, people must trust it. That starts with understanding how it works. Whether AI is reacting to seasonal changes, shifts in demand or what competitors are doing, decision makers need to see the logic. When they do, they're more likely to lean in and act on those insights with confidence.
There's also the question of fairness. Because AI learns from past data, it can sometimes pick up on patterns that reflect bias. If left unchecked, that could lead to skewed outcomes, favoring certain stores or customers. That's why regular review is critical, along with using diverse datasets and applying ethical standards. The goal is to ensure AI-driven decisions are fair, responsible and work for everyone.
Turning AI Into A Daily Decision Partner
AI works best when it's embedded into everyday routines, not just used in one-off projects. When integrated into daily workflows, AI can constantly learn from fresh data, adjusting forecasts in real time and fine-tuning prices and inventory as conditions evolve. Instead of reacting to problems after they occur, retailers can anticipate challenges and proactively address them.
This approach helps avoid costly mistakes such as excess stock or running out of popular items while also enabling more personalized customer experiences that keep shoppers coming back. In today's complex retail environment, with supply chain disruptions, economic shifts and changing consumer behaviors, businesses need to be both agile and strategic. By moving beyond quick fixes and combining advanced technology with human insight, retailers build resilience and position themselves for sustainable growth, even amid uncertainty.
AI As A Strategic Engine For Retail's Future
AI is helping retailers take a more forward-thinking approach to running their businesses. It's not just about having a lot of data—it's about knowing what to do with it.
Still, AI only works well when people trust it. That means being transparent about how it works and making sure its decisions are accurate. When AI is built into daily operations and used thoughtfully, it helps retailers stay flexible and confident—even when the market is unpredictable.
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