AI-driven strategies for category management rofitability

  • 1 University of Economics in Bratislava


Category Management (CM) is undergoing a transformation thanks to artificial intelligence (AI). AI automates tasks such as data analysis, market segmentation, and demand forecasting, which streamlines and simplifies the work of category managers. It also allows the creation of innovative strategies and campaigns that are relevant to customer needs. This paper focuses on identifying ways in which AI can help to create innovative strategies needed to optimize prices and product lines within category management with the aim to maximize profitability. The paper deals deeper with price optimization, where AI significantly impacts CM. AI analyzes price elasticity and suggests optimal prices for products, which affects the maximization of profitability. Thanks to AI, category managers no longer have to rely on manual analysis and intuition, but they can set prices with much greater accuracy and efficiency. Based on the findings and case studies in the article, the implementation of AI in CM brings companies significant benefits in terms of efficiency, innovation, and profitability. However, it requires strategic planning, investment in technology, and talented people. It is also important to be responsible and ethical when using AI to avoid negative impacts on customers and society.



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