# Inventory Risk and Obsolescence Management

Every unit of inventory is aging from the moment it arrives. Some items sell quickly and turnover is healthy. Others slow down gradually, then suddenly become worthless — a new product version launches, a technology shifts, a regulation changes, or customer preferences evolve. The traditional approach is to write off obsolete inventory at year-end. AI enables proactive management that reduces write-offs by identifying at-risk inventory while it still has value.

The Obsolescence Timeline

Inventory obsolescence follows a predictable pattern that AI can detect early:

Phase 1 — Healthy: Strong, consistent demand. Turnover meets targets. No concern.

Phase 2 — Slowing: Demand begins declining. Weeks of supply starts creeping up. Often invisible because absolute sales are still meaningful.