Outdated Inventory Systems Are Costing Retailers: Info-Tech Research Group Publishes Insights on How AI Can Make a Difference
Global research and advisory firm Info-Tech Research Group has published new research insights to help retailers leverage AI effectively amidst evolving supply chain and inventory management challenges. The firm's resource walks retail industry IT leaders through seven steps to develop AI strategies that optimize stock levels, streamline operations, and respond faster to market changes.
TORONTO, June 20, 2025 /PRNewswire/ - Inventory has become one of retail's most expensive guessing games. As customer expectations evolve faster than supply chains can respond, retailers are often stuck choosing between empty shelves and excess stock, both of which erode margins. In response to these growing industry challenges for organizations and their IT teams, Info-Tech Research Group has published Build Your AI Strategy for Retail Inventory Management, a practical blueprint that helps retailers transition from outdated inventory methods to intelligent, data-driven operations. The global research and advisory firm's new resource outlines how industry IT leaders can apply AI to improve forecasting, optimize stock levels, and deliver measurable performance gains.
Adoption Challenges Are Slowing AI Integration in Retail Inventory Systems
Info-Tech reports in its recently published resource that despite the clear benefits of AI in transforming retail inventory management, many organizations face significant challenges in adoption. The firm's research insights highlight that aligning the business stakeholders to develop a cohesive AI strategy remains a common hurdle, especially when it involves addressing existing inventory limitations and identifying critical gaps. Additionally, realizing AI's full potential often requires mature data infrastructure and advanced system capabilities that not all retailers have in place.
"Inventory management applications that are AI-driven can deliver where traditional inventory management falls short," says Donnafay MacDonald, research director at Info-Tech Research Group. "By providing real-time insights backed by big data, these applications enable retailers to respond to market changes through predictive forecasts that reduce waste, improve operational efficiency, and enhance customer satisfaction."
Info-Tech Recommends a Seven-Step AI Implementation Framework for Retail IT Leaders
To support IT and business leaders in overcoming these barriers, Info-Tech offers a clear, step-by-step framework featuring a practical use-case library. The blueprint outlines seven key steps to guide retail IT leaders in developing and executing an AI strategy tailored to their inventory needs. These include:
- Formulating an AI strategy aligned to business goals. Define how AI will drive key objectives such as boosting customer satisfaction, cutting costs, or increasing agility and set clear success metrics.
- Establishing responsible AI principles. Put ethical, privacy, and governance guardrails in place to ensure transparent, fair, and secure AI solutions.
- Launching targeted AI initiatives. Start with pilots such as demand forecasting or automated replenishment to prove value and build momentum.
- Building a use case library. Catalog specific applications such as dynamic pricing or shelf space optimization with defined benefits, data needs, and technical requirements.
- Evaluating value and feasibility. Estimate ROI, resource demands, and risks for each use case to spotlight quick wins and flag longer term projects.
- Prioritizing projects. Rank initiatives by impact, effort, and risk so teams invest where they will see the fastest, biggest returns.
- Mapping out an AI roadmap. Sequence pilots and rollouts with clear milestones for data readiness, model validation, and performance reviews.
InfoTech advises that by addressing longstanding challenges in inventory management, retailers have an opportunity to adopt smarter, more resilient systems that reflect the realities of today's retail environment. With competitors already incorporating AI into their everyday operations, the pressure to evolve is intensifying for IT leaders.
The firm's blueprint provides retailers with straightforward, actionable guidance to implement AI in a way that supports business goals without adding unnecessary complexity. Info-Tech explains that with the right tools and direction, retailers can improve product availability, streamline operations, and respond to demand shifts with greater confidence and control.
For exclusive and timely commentary from Donnafay MacDonald, an expert in the retail sector, and access to the complete Build Your AI Strategy for Retail Inventory Management blueprint, please contact [email protected].
About Info-Tech Research Group
Info-Tech Research Group is one of the world's leading research and advisory firms, serving over 30,000 IT and HR professionals. The company produces unbiased, highly relevant research and provides advisory services to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
To learn more about Info-Tech's divisions, visit McLean & Company for HR research and advisory services and SoftwareReviews for software buying insights.
Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].
For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.
SOURCE Info-Tech Research Group
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