AI in Business forecasting is playing the effective roles which is evolving..

e.g.

VSP(Vehicle Sales Prediction): AI models use historical sales data, market trends, economic indicators, and customer behaviour to predict demand for different models, powertrains (ICE, EV, hybrid), or regions.

FLF(Feature-Level Forecasting): Predict demand for features like ADAS, infotainment, or battery range preferences.

DLF(Dealer-Level Forecasting): Helps OEMs and dealers balance inventory by forecasting at a granular (local) level.

PCF(Parts & Component Forecasting): Predicts demand for critical parts (chips, batteries, sensors), reducing shortages.

Production Planning: Aligns manufacturing schedules with real demand, avoiding overproduction or stockouts.

Logistics Optimization: AI forecasts delivery times and risks (e.g., port congestion, geopolitical disruptions).

Revenue Forecasts: Uses AI-driven scenario modelling (e.g., EV adoption rates, fuel price shifts).

Cost Forecasts: Predicts raw material price trends (lithium, steel, semiconductors).

Aftermarket Services Forecast: Anticipates demand for maintenance, software updates, OTA services.

Disruption Prediction: Detects early signals of supply chain risks (pandemics, strikes, chip shortages).

Warranty & Quality Forecasts: Predicts potential recall costs and warranty claims by analysing field data.

Regulatory Forecasting: Anticipates impact of emission norms, safety regulations, or EV incentives.

EV Transition Forecasting: Predicts when markets/customers will shift to EVs vs hybrids.

Personalized Offers: AI can forecast which financing or subscription models customers will prefer.

and many others like Regional Trends which helps OEMs decide where to launch models first.

But, we dont rely on it... we use it as an opinion to avoid considering biases.

Thanks Jai for your insight.

Dear Neaz Mujeri ,

AI in business forecasting involves using artificial intelligence, primarily machine learning algorithms, to analyze vast datasets and predict future outcomes with greater accuracy than traditional methods. AI forecasting helps businesses optimize operations, such as inventory management and supply chains, by providing dynamic, adaptive, and continuously improving predictions based on historical and real-time data, market trends, and external factors.

AI demand forecasting is the use of artificial intelligence to estimate future demand for products or services. It works by analyzing real-time and historical data, along with other relevant external factors, to offer predictions and actionable insights that help organizations make informed decisions.

https://www.ibm.com/think/topics/ai-demand-forecastin

Regards,

Shafagat

Thanks Shafagat for your insight.