AI for Breakfast

Chris Witham • January 31, 2024

Post 15 – Using AI for efficient inventory management in small businesses


In the bustling world of small business ownership, every minute counts and efficiency is the key to success. As a business owner, you're always looking for ways to streamline processes, reduce costs, and maximise profits. One area ripe for improvement in many small businesses is inventory management – and that's where Artificial Intelligence (AI) comes in.


AI: The game-changer in inventory management

Understanding the AI advantage


AI isn't just for tech giants; it's increasingly becoming a crucial tool for small businesses, especially in managing inventory. By harnessing AI, you can transform your inventory management from a tedious, error-prone process into an efficient, accurate, and predictive strategy.


1. Automated stock monitoring: AI systems can continuously monitor stock levels, reducing the risk of overstocking or stockouts. This real-time tracking ensures that you have just the right amount of inventory at all times.


2. Predictive analytics: AI excels in identifying patterns and predicting future trends based on historical data. It can forecast demand for various products, helping you to prepare for seasonal fluctuations or changing market trends.


3. Enhanced decision making: With AI, you gain insights into which products are performing well and which aren't. This information is vital in making informed purchasing and marketing decisions.


4. Time and cost savings: By automating inventory processes, AI reduces manual effort and minimises errors, saving both time and money.


Implementing AI in your inventory management

Getting started


Embarking on the AI journey might seem daunting, but it's quite feasible even for small businesses. Here are some steps to get you started:


  • Assess your needs: Understand what you want to achieve with AI in your inventory management. Is it reducing stockouts, improving order accuracy, or something else?


  • Choose the right tools: There are various AI-powered inventory management systems available. Select one that aligns with your business size, needs, and budget.


  • Integrate with existing systems: Ensure the AI system integrates seamlessly with your current software to avoid disruption.


  • Train your team: Educate your staff about the new system and its benefits. This will ease the transition and encourage adoption.


  • Analyse and adjust: Regularly review the system's performance and make adjustments as needed. AI systems often require fine-tuning to align perfectly with your business processes.


The road ahead

Embracing AI for inventory management can be a game-changer for your small business. It not only streamlines operations but also provides a competitive edge in today's fast-paced market. As AI technology continues to evolve, its accessibility and utility for small businesses will only increase, making now the perfect time to get on board.


Key takeaways:


  • AI transforms inventory management by automating monitoring, offering predictive insights, and enhancing decision-making.
  • Implementing AI requires assessing needs, choosing suitable tools, integrating with existing systems, training staff, and ongoing analysis.
  • Adopting AI in inventory management can significantly improve efficiency and competitiveness for small businesses.


In conclusion, integrating AI into your small business isn't just about keeping up with the times; it's about staying ahead of the curve and unlocking the full potential of your business.


Here are a few links to some inventory systems, there are most likely more, you will need to do some further research and testing to see what works for your business.


  • Zoho Inventory: This is an all-in-one inventory management system with features like multichannel selling, order management, and inventory control. It's suitable for managing multiple warehouses and offers functionalities like sales order management, invoicing, and packaging and shipping​​.


  • Cin7: This platform is designed for multichannel businesses, offering real-time stock visibility and efficient handling of the entire order lifecycle. It's particularly good for businesses managing inventory across different sales channels​​.


  • Fishbowl Inventory: Well-suited for manufacturing and wholesale businesses, Fishbowl offers advanced inventory tracking and warehouse management features. It's known for its robust functionalities in stock level monitoring, inventory transfers, and barcode scanning​​.


  • Sortly: This tool is great for visual inventory management using photos, QR labels, and custom tags. It allows for real-time tracking of inventory movements and updates​​.


  • Katana: Ideal for modern manufacturers, Katana offers visual production planning and real-time inventory tracking. Its user-friendly interface makes it easy to navigate through different features​​.


  • InFlow Inventory: Suitable for small to medium-sized businesses, InFlow Inventory offers easy setup, affordability, and mobile accessibility. It's an excellent choice for businesses needing a straightforward and cost-effective inventory management solution​​.


  • DEAR Inventory: Known for its comprehensive inventory and order management, DEAR Inventory integrates seamlessly with accounting software and supports multi-location operations. It's ideal for businesses seeking integration with accounting​​​
Lines of colorful computer code on a dark background.
By Chris Witham December 11, 2025
Where AI really helps your Business If you spend any time on LinkedIn or X, you’ll have seen bold claims about how AI can help you build software in a matter of days. There’s a lot of excitement, a lot of big promises, and a fair bit of confusion for business owners trying to work out what’s real. A new term doing the rounds is “Vibe Coding” —the idea of describing what you want to an AI assistant and having it generate the code for you. It’s becoming popular because it can move things forward quickly and help people explore ideas they wouldn’t have been able to create alone. And the truth is, it does have its place. The challenge isn’t the technique. It’s the expectation that AI will automatically deliver finished, reliable, production-ready tools without any real design or thinking behind them. AI accelerates the work you already do well Used properly, AI can: • Remove huge amounts of repetitive work • Speed up drafting and iteration • Generate working prototypes in hours • Help non-technical people explore ideas • Improve documentation, planning and communication This is where it shines. But it still needs clarity, structure, and well-designed processes around it. It’s like having a very fast assistant rather than a fully formed development team. Why many AI projects don’t deliver what people expect Independent research this year showed a clear pattern: • Many early AI initiatives failed to produce measurable business value • Companies abandoned AI ideas because they couldn’t scale or integrate them • The gap between an impressive demo and a reliable tool is larger than people thought This doesn’t mean AI is overhyped. It means teams jumped straight to execution without the groundwork. The technology isn’t the issue. It’s the approach. Small businesses don’t need Enterprise Platforms Most UK small businesses don’t need to build a full software product. What they actually need is: • Better workflows • Faster content generation • Clearer communication • Improved customer support • Tools that reflect the way they work • Consistency and repeatability AI is perfect for this. A custom GPT trained on your tone, your documents and your processes can become: • A writing assistant • A customer support helper • A knowledge base navigator • An internal guide for staff • A quality-control layer • A process automator No engineering team needed. No complex infrastructure. No stress. Where AI builds real value right now AI works best when it’s part of a thoughtful, guided approach: • Define the outcome you want • Build a lightweight prototype (AI helps here) • Add structure, rules and guardrails • Connect it to your real workflow • Test it with real users or staff • Iterate until it feels natural You can still move fast. You just avoid building something brittle that breaks the moment it’s needed. The key insight: AI doesn’t replace expertise, it amplifies it AI is at its strongest when someone knowledgeable decides: • What it should do • What it shouldn’t do • How it should behave • What tone it should use • How it fits into the business • What checks and constraints matter That’s where tools like custom GPTs genuinely shine. They’re not software products in the traditional sense. They’re flexible assistants shaped around your business. With the right design, they can save huge amounts of time and deliver consistent, practical value without any of the complexity of building a full system. A more useful way to think about AI in 2026 Instead of “AI will build everything for you”, a healthier mindset is: AI speeds up the work, but you set the direction. For small businesses, that’s more than enough to make a real difference.
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