15 July 2025

AI Demand Forecasting Adoption Grows Among Australian Retailers

New survey reveals 60% of major Australian retailers now use AI-powered demand forecasting, driving significant inventory efficiency gains.

newstechnologyinventory

A new industry survey reveals that 60% of major Australian retailers have adopted AI-powered demand forecasting systems, with significant improvements in inventory management reported.

Survey Findings

Adoption Rates

  • Large retailers (>$100M revenue): 78% AI adoption
  • Mid-market ($20-100M): 52% AI adoption
  • Small retailers (<$20M): 28% AI adoption

Reported Benefits

Users report substantial improvements:

  • Stockout reduction: 35% average decrease
  • Overstock reduction: 28% average decrease
  • Forecast accuracy: 22% improvement over traditional methods
  • Working capital: 18% reduction in inventory investment

Implementation Patterns

  • Cloud-based platforms: 65% of implementations
  • ERP-integrated modules: 25% of implementations
  • Custom solutions: 10% of implementations

Data Sources Utilised

  • Point of sale data
  • Weather forecasts
  • Social media sentiment
  • Economic indicators
  • Promotional calendars

Challenges Reported

Adoption barriers include:

  • Data quality and integration complexity
  • Staff training and change management
  • Initial accuracy calibration period
  • Cost justification for smaller operators

Outlook

Analysts predict 80% adoption among mid-to-large retailers by 2027, driven by increasingly accessible cloud-based solutions and proven ROI.