What: AlixPartners launches an AI-powered forecasting platform that integrates hundreds of data sources to optimise retail pricing, promotions, inventory, and marketing strategies.

Why it is important: This development comes at a crucial time when retailers are seeking to enhance their forecasting capabilities, with industry data showing that AI-driven approaches can improve customer service efficiency by up to 30% while optimising inventory and pricing decisions.

AlixPartners' new AI Profit Engine represents a significant advancement in retail forecasting technology, designed to address the industry's crucial challenge of predicting customer behaviour and spending patterns. The platform integrates data from hundreds of internal and external sources, including pricing strategies, marketing investments, inventory availability, competitive pricing, and macroeconomic conditions, to create more accurate demand forecasts. This comprehensive approach enables retailers to optimize their pricing and promotion strategies, inventory management, and marketing initiatives. The solution's ability to conduct "what-if" analyses helps decision-makers identify key operational levers across multiple business functions, allowing retailers to validate quarterly guidance and test promotional strategies before deployment. This innovative tool arrives as traditional retail forecasting methods struggle to accurately predict two essential metrics: customer footfall and spending patterns, offering a data-driven solution to enhance profitable growth in an increasingly complex retail landscape.

IADS Notes: Recent retail industry developments underscore the timeliness of this launch. As observed in March 2025, while all retailers plan to implement AI initiatives, only 32% effectively keep pace with customer behaviour. The potential impact is significant, with early AI adopters achieving revenue increases of 6% or more and customer service improvements of up to 30%. Success stories like Intime Department Store's 15% boost in counter sales through AI integration demonstrate the tangible benefits of transitioning from traditional forecasting methods to AI-powered solutions.

AlixPartners launches an AI profit engine