AI and ML are also helping in the new paradigm shift in retail operations, especially in the supply chain. Demand forecasting is an important element of success for retailers, and with the help of AI, it has become possible to forecast demand with a higher level of precision. Through the aggregation of past data and trends and even the environment, such as weather or the like, AI can help retailers avoid overstocking, understocking, or even stock outages. This, in addition, fosters organizational performance by reducing the incidence of stockouts and overstocks, which inconvenience customers.

Also, AI is being incorporated into various supply chain processes, including orders, supply, and even delivery. AI-supported robotic systems can perform a number of activities, including picking, order management, warehouse management, and last-leg delivery, more proficient than conventional techniques. For instance, automated driving can be done by AI-powered robots in warehouses, and this will help in sorting and moving products to a village faster and with more precision as compared to a mechanic driver, thereby reducing the time it will take for a product to get to a customer in that particular village. Also, real-time resources help optimize delivery routes, thereby cutting down on delivery time and expenses. They are beneficial in enabling increased speeds in delivery, the delivery of which is now viewed as a competitive advantage in the retail trade sector.