Forecasting Reimagined: The Impact of LLMs on Demand Forecasting

Large Language Models (LLMs) offer a conversational approach to planning. Such LLMs, trained on internal and external data, don’t just provide forecasts but can answer questions such as why demand dropped in a particular region, and provide scenario plans if a given event were to occur. Further, they can provide a rationale for their forecasts, making this a highly interactive tool that facilitates deep understanding of demand drivers. In this article, I discuss how LLMs learn from human overrides and analyze data including emails, campaign notes, and disruption alerts that traditional models overlook. I also discuss the practical applications of LLMs in retail, apparel, consumer goods, and logistics that are driving real-world operational ...