What Is AI Merchandising? AI merchandising is the application of AI tools to automate, optimize and improve retail decisions related to product selection, content, presentation, location, pricing and related operations. The Technology Stack Behind AI MerchandisingThe foundation of AI merchandising is made up of predictive analytics and machine learning. “A myriad of technologies power AI merchandising, but the baseline is predictive or conventional AI capabilities tied to demand forecasting as a baseline,” says Ananda Chakravarty, research vice president for IDC Retail Insights. Where AI Merchandising Delivers the Most Measurable ROIThe best starting point depends on a retailer’s model, maturity and existing bottlenecks.