Sales forecasts: using AI image recognition for purchasing goods

A photo of a product is enough to determine precise sales forecasts, quantity recommendations and optimal prices within seconds. This technology, which combines image recognition with generative AI, has the potential to fundamentally transform retail.

From procurement to logistics, AI-supported systems open up new opportunities to make processes more efficient and support companies in actively shaping the future of retail. Tools such as those from the Fraunhofer Institute for Intelligent Analysis and Information Systems (IAIS) show how artificial intelligence can be used specifically in areas such as sales forecasting and goods flow management.

The introduction of new products is often associated with uncertainties: How high will the demand be? At what price should the product be offered? The “RetAIl Purchase Navigator” from the Fraunhofer Institute IAIS is a prime example of a solution to such questions. This tool combines image recognition, AI-supported data analysis and market information to provide precise sales and sales forecasts. With just a photo and a few keywords, the Navigator analyzes product features in comparison with market and company data. The generated forecast provides retailers with valuable recommendations for action that leverage sales potential and optimize operational processes – all within a few seconds.

Merchandise management can also benefit from such AI solutions. With the “RetAIl Allocator” from Fraunhofer IAIS, internal company factors such as sales data, store attributes and stock levels can be linked with external influences such as market trends and seasonal fluctuations. This data-based approach ensures that products are available in the right quantity at the right place at the right time. Practical results show that the optimization of goods flow management through the use of AI-supported analyses can not only reduce storage costs, but also significantly increase customer satisfaction and sales.

Generative AI and multimodal systems promise even more versatile applications in retail. Automated pricing and more efficient supply chain management are just a few examples. These technologies open up new opportunities for companies to assert themselves in a highly competitive market and at the same time operate more efficiently and sustainably – real added value in a dynamic retail landscape.

Alongside the presentation of the tools, Dr. Tim Wirtz from Fraunhofer IAIS will be giving an expert talk entitled “ChatGPT, Copilot, Gemini – What's next?” on the Red Stage at EuroCIS 2025 on February 19. The focus will be on the possibilities of multimodal generative AI and its significance for the retail industry. Visitors will gain insights into the latest developments and their practical application in retail.

Source: Fraunhofer IAIS