AI demand forecasting is the use of machine learning models to predict future product demand at the SKU and sales-channel level, based on a wider and more current range of data than a manual forecast typically accounts for, including sales history, seasonal patterns, current ecommerce performance, and planned marketing activity. The value shows up most clearly ahead of peak season, when the cost of getting a forecast wrong in either direction, understocked and losing sales, or overstocked and paying for space and markdowns, is highest and least forgiving of a slow correction.