H&M uses AI-powered demand forecasting systems to predict how much of each product will sell in each store, helping the company decide what to produce and where to stock it. H&M created its AI department in 2018 and has since built this capability on a Google Cloud data platform announced in 2022.

H&M's demand forecasting AI ingests historical sales data, customer behavior, market trends, weather patterns, and external variables to generate item-level predictions per store. In 2022, H&M announced a strategic partnership with Google Cloud to develop an enterprise-wide data backbone—including a data mesh connecting in-store, online, supplier, and brand data—to expand these capabilities. The system also automates inventory allocation and replenishment decisions. H&M's CEO confirmed in 2026 that the company continues to expand AI use in demand forecasting and logistics.