Year: 2026
Type: preprint
Abstract: Artificial intelligence (AI) is changing demand forecasting from a periodic planning exercise into a continuous, data-driven marketing capability. Instead of projecting last year’s sales forward, AI-based forecasting systems learn from sales history, prices, promotions, weather, holidays, web searches, social media and customer behaviour, and predict demand at the level of a single product, store, customer and day. This paper studies how AI is used in predictive marketing to forecast customer demand. It traces the move from classical statistical methods to machine learning, deep learning and time-series foundation models; proposes a five-stage predictive marketing pipeline; and examines applications in pricing, promotion planning, inventory, personalisation and new-product launches. Case studies of Amazon, Walmart, Rue La La, Blinkit and Starbucks illustrate practice, including one cautionary example. The study uses a qualitative, secondary-research design based on peer-reviewed literature, forecasting competitions, industry reports and company disclosures. It finds that AI forecasting consistently improves accuracy over traditional methods, typically by 10% to 20% in independent and company-reported evidence, with the largest gains where data are rich and forecasts feed directly into marketing decisions. The gains depend, however, on data quality, human judgement, model explainability and responsible use of customer data. The paper closes with practical recommendations for marketers, with particular attention to the Indian market.
Author: Abhinav Singh
Institution: University of Lucknow
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225321862