Following projections that inventory distortion could cost retailers an overwhelming $1.77 trillion in 2023, businesses are shifting their focus towards AI to optimise their inventories. To counter this rising concern, AI solution provider Peak, is launching a performance guarantee for its AI-powered inventory applications. Through this initiative, Peak aims to show businesses that adopting technology to streamline and optimise their inventories does not have to be a high-risk venture.

The performance guarantee scheme unveiled by Peak aims to bolster inventory availability. Under the scheme, if the overall availability of products across a customer's network falls below an agreed rate over the duration of the guarantee period, Peak commits to reimburse the cost incurred for the AI application. This move is poised to enable businesses to predict, order, and balance optimal stock levels across their networks with minimal risks.

This performance guarantee stands pivotal for organisations aiming to leverage AI-enabled benefits without the potential dangers that the adoption of new technology usually implies. At a time when businesses are continuously embarking on large-scale digital transformation programmes - that often face the issues of scope creep, extended timelines, and overspending - there is a critical need to reinvent and evolve. Especially during a period of high interest rates and significant capital costs, certainty about technological investments not turning into 'digital dust' is essential for businesses.

Richard Potter, CEO and co-founder at Peak, highlights the potential benefits of their initiative, "On average, Peak’s inventory customers see a stock holding reduction of 20 per cent whilst increasing availability for their customers. With almost a decade’s experience developing and deploying AI, this performance guarantee demonstrates the maturity of Peak’s product and provides our customers with the assurance that optimising their inventory with AI doesn't have to come at a higher risk. In a time of unpredictability, Peak offers welcome stability for businesses looking to transform their operations with AI."

Peak developed their innovative AI guarantee in collaboration with a reinsurance partner. The product was also independently verified by a team of external AI reinsurance specialists. The guarantee illustrates the confidence Peak places in its AI applications for inventory optimisation and the commitment it offers to its customers regarding the efficiency and reliability of its AI technologies. With businesses worldwide bearing the brunt of economic instability and uncertainty, Peak's performance guarantee provides some much-needed reassurance.