With accumulation and proliferation of large data, it is highly necessary to make some meaningful sense out of the data. Here is where Artificial Intelligence (AI) tools and algorithms play a major role. AI is highly expertise in handling the customer data and forecasting the purchase behavior of customers. This has brought out the biggest level of automation in the e-commerce industry. AI provide notification when a company has to re-order stock and assist in creating manufacturing schedule as per the variation in demand during the particular period of time accurately. The autonomous and data-driven supply chain has optimized logistics, manufacturing, warehousing and the last mile delivery. E-commerce giant like Amazon use leads to time and forecasting techniques to critically plan inventory orders. Machine learning system (MLS), a subset of AI solves the cognitive problems associated with human intelligence and helps to optimize logistic speed and quality. This paper discusses AI-based inventory management tools which are being utilized in the e-commerce industry. AI provides customers an enriched experience which helps to maximize profits.