AI-powered bots can be used to automate the process of categorizing hundreds of products from different vendors that need to be classified under various categories such as Department, Category, and Sub-Category. The bot uses data from different systems such as the inventory management system and enterprise resource planning (ERP) system to create and update the categorization as necessary when new products are added, or existing products are modified. This facilitates effective inventory management by reducing the risk of errors when done manually. The automation ensures an accurate and up-to-date product categorization that is easy for customers to navigate.