Traditional forecasting methods typically focus on historical sales data, inventory records, and perhaps a handful of economic indicators. AI greatly expands this scope. It can absorb and unify external data from a wide range of structured and unstructured sources: transaction histories, customer loyalty data, website traffic, product reviews, social media conversations, weather reports, shipping delays, and even geopolitical developments.
By connecting them all, AI creates a more complete picture of the forces shaping demand patterns.