Trying to balance staffing needs alongside scheduling, labor costs, and real-time demand forecasting is no easy feat.
You need enough people on shift to meet demand—but not so many that you’re quickly running up your budget. At the same time, you’ve got compliance considerations and unexpected shift changes that can make accurate forecasting feel almost impossible.
That’s why more businesses are turning to AI demand forecasting. 78% of organizations, for example, have already reported using AI, helping managers and operators make smarter, faster staffing decisions.
But there’s quite a lot of hype around AI, and you might be wondering what the benefits of it are, or where your people still play a crucial role. Success for your business won’t come from replacing humans with AI, but from pairing your people with AI-driven solutions that help your business thrive.
AI and labor forecasting: what’s real and what’s hype?
AI can process huge amounts of data in minutes and replace pesky spreadsheets, but not all labor forecasting methods are created equal, and your shift-based business relies on humans to help it thrive. What’s the real benefit of AI, then, and what’s hype?
Supporting your people to focus on what matters
Labor forecasting can be incredibly time consuming and taxing for managers. They need time to focus on building engaged teams and coaching staff, but countless hours can be wasted in spreadsheets and tools trying to forecast demand.
AI demand forecasting lends the speed, accuracy, and faster decision making that allows staff to focus more of their time on creating better customer experiences.
Smarter scheduling decisions: While shift workers focus on helping customers and driving sales, AI can analyse sales, foot traffic, seasonal changes, weather, and local events to help managers build schedules based on more predictive demand forecasting insights.
Better labor cost projections: With Deputy AI, managers can quickly calculate projected labor costs, taking into account expected revenue which helps your team strike the right balance between shift coverage and revenue.
More alignment with demand: Instead of guessing when you may need more or less staff, AI and real-time demand forecasting allow managers to match staffing needs to peak times, cutting costs spent on overstaffing and reducing the risk of understaffing.
The benefits don’t just lie in saving time; shift workers experience fewer unpredictable shift changes and have reliable, fair schedules they can count on, while managers can improve labor costs and tackle fluctuations in demand, so every shift is optimized.
Where AI alone falls short
AI isn’t a silver bullet—forecasts are only effective as the data AI has to work with, and it can’t fully capture the human side of shift work.
That’s why it’s crucial your people still remain in the loop when using AI to drive labor forecasting. Consider that:
If your workforce data is inconsistent (think: spread across multiple tools), forecasts won’t be accurate.
If AI-generated forecasts don’t have any human oversight, errors can easily be missed (and shift workers can lose trust in schedules and shift management).
When managers rely too heavily on AI, they can overlook the details and moments that keep teams motivated and connected.
Think of AI as an assistant that gives managers foresight through predictive demand forecasting, helping them plan smarter and act more quickly.
Better together: How people + AI make labor forecasting better
Labor forecasting is most effective when AI and managers work in tandem. Instead of automating every aspect of forecasting, combining AI demand forecasting with human insight ensures that forecasts are grounded in the knowledge, experience, and empathy that managers and shift workers bring to the workplace. And that’s what makes people and AI truly better together.
It moves your business away from reactive scheduling and manual demand planning to proactive labor forecasting when AI acts as a supporter of your decision makers.
AI lends speed and foresight by helping managers find patterns, predict peaks in demand, and automate the manual admin tasks that slow their teams down.
Humans provide the empathy and connection AI can’t automate; managers understand their teams, their needs, and the right workers for the right shifts, and those insights are invaluable to forecasting.
Together, every shift becomes smoother, staff are happier, and managers deal with fewer compliance risks—which means overall more profitable days for you.
How Deputy AI helps shift-based businesses
Deputy AI helps your business optimize every shift. It doesn’t replace the human connection and empathy at the heart of shift work, but strengthens it.
Teams that leverage Deputy AI get:
Smarter scheduling suggestions and recommendations based on real business data, like historical sales, foot traffic, and shift insights.
Clear visibility into upcoming demand and how it aligns with labor costs and schedules
Built-in compliance that applies break requirements and other regulations automatically.
Labor cost projections that make it easier for leaders to balance shift coverage with revenue.
With Deputy AI, your people have the tools they need to build better, more confident forecasts with human insight and judgement at the center of every decision.
Tips for getting started with AI in labor forecasting
From optimizing your labor forecasting and demand, to automating compliant schedules, Deputy helps your business put AI into practice right away—and it’s one of the ways in which you can support your shift workers and teams, so they can get back to the work that matters most.
Here are 4 easy tips for getting started with using AI in labor forecasting:
Keep humans in the loop: AI should act as a supporter for your managers, not replace them. Giving managers and leaders the final say on scheduling, forecasting, and planning ensures there’s always human judgement around preferences, fairness, and compliance.
Use AI to save time without losing visibility: Prioritize using AI for repetitive or manual work (like shift changes and scheduling), so managers get time back to review the outputs and how AI is performing. For example, Deputy AI gives you clear visibility into forecasts, so your team knows why a recommendation was made.
Focus on building trust with tools: Just 15% ofworkers are consulted about AI and how their companies plan to use it—so, it’s safe to say that communicating openly with your teams about how AI will work for your business is crucial. When shift workers understand that AI is here to help—not replace— them, they’re more likely to trust and embrace the solutions you onboard.
Treat AI like an assistant, not a leader: AI can be incredibly beneficial in surfacing potential issues before they escalate, like compliance risks, unfair schedules, or unprecedented spikes in demand. But it’s your team’s experience, knowledge, and responsiveness that make those insights valuable.
The future of labor forecasting is powered by AI, and led by your people
AI is already changing how shift-based businesses work, and there’s no better example of that than labor forecasting. Schedules become more predictable, compliance is easier to track, and managers are saying “goodbye” to wasted time spent on guesswork.
When AI and humans work together, shift work just gets smarter. And every shift is powered by better, more effective labor forecasting. With Deputy AI, labor forecasting and optimization become more intuitive:
AI-powered forecasting adapts to your business’s needs.
Smart scheduling suggestions, powered by AI demand forecasting, align labor with demand and fluctuations.
You get clear visibility into upcoming demand vs. scheduled hours with real-time forecasting.
Compliance and control are built into every schedule, giving managers the flexibility they need to adjust as they go.
Shift-based businesses that embrace Deputy AI in building better labor forecasting are working smarter, moving faster, and making data-backed decisions driven by the humans at the heart of every shift.
Explore Deputy AI for your business
Curious about how Deputy’s AI-powered labor forecasting can help your teams build better forecasts and optimize labor costs? Book a time with our team to explore how Deputy AI is transforming forecasting for shift-based businesses around the globe.
