Gen AI in inventory management enhances business efficiency by analyzing historical sales data, market trends, and external factors to predict future demand. By integrating with sales databases, weather reports, and market trend analysis platforms, these AI-powered demand forecasting tools enable businesses to optimize stock levels, prevent shortages, and reduce excess inventory costs. This approach not only predicts demand fluctuations based on data-driven insights but also optimizes inventory levels to prevent stockouts or overstocking, enhancing supply chain efficiency and improving customer satisfaction.