Abstract: This paper explores the transformative role of Artificial Intelligence (AI) in inventory management, highlighting how AI-powered tools such as machine learning, predictive analytics, and automation optimize inventory levels, reduce holding costs, and improve forecasting accuracy. Drawing from case studies of Amazon, Mayo Clinic, and a focused analysis of Safe Shop India, the research evaluates AI's real-world impact on operational efficiency and customer satisfaction. The findings advocate for the strategic implementation of AI in inventory systems to achieve agile, data-driven, and resilient supply chains. Keywords: Artificial Intelligence, Inventory Management, Supply Chain Optimization, Forecasting, Case Study