You’re listening to “LLM-Driven Business Intelligence for Retail Digital Transformation: A Decision Support System Case Study,” by X. Wang and Y. Zhang. Published in 2026. Abstract. The rapid digital transformation of the retail industry has generated increasing demand for intelligent business intelligence systems that can translate natural language managerial inquiries into actionable analytical and predictive decisions. However, existing enterprise analytics solutions either rely on rigid dashboard-based querying or isolated AI models, and thus struggle to jointly achieve knowledge grounding, executable analytical reasoning, and decision-oriented synthesis within a unified framework. RIDE constructs knowledge-grounded analytical contexts from enterprise repositories, employs multi-step reasoning–action planning to orchestrate tool-based analytics, generates grammar-constrained executable SQL for reliable database access, and integrates predictive forecasting to support decision synthesis. Overall, this study establishes a new paradigm for large language model–driven business intelligence systems that bridge human-like inquiry and machine-executable analytics, providing a robust foundation for intelligent and trustworthy retail digital management. INTRODUCTION. The retail industry is undergoing rapid digital transformation driven by large-scale transaction data, diversified customer interactions, and increasingly complex supply chain networks. In such environments, business intelligence (BI) systems play a critical role in supporting managerial decision-making by transforming raw enterprise data into analytical insights and actionable recommendations. Traditional BI platforms, however, remain largely dependent on predefined dashboards, static reports, or manually constructed database queries, which limits their flexibility in responding to dynamic business questions and constrains the efficiency of data-driven decision processes. Developing intelligent BI systems that can understand natural language managerial inquiries, automatically conduct analytical reasoning, and deliver decision-oriented outcomes has therefore become a key research topic for next-generation retail digital management. Recent advances in large language models (LLMs) have demonstrated strong capabilities in natural language understanding, reasoning, and content generation, inspiring a growing interest in applying LLMs to enterprise analytics and decision support. Some studies have explored retrieval-augmented generation for factual grounding, text-to-Structured Query Language (SQL) translation for database querying, and tool-augmented agents for multistep reasoning. Parallel research in deep forecasting has achieved notable progress in retail demand prediction. These developments have established that LLMs and deep learning models can enhance individual components of BI pipelines. Nevertheless, current approaches typically address knowledge retrieval, analytical querying, reasoning, and predictive modeling in isolation. As a result, they lack a unified mechanism to coordinate knowledge grounding, executable analytics, and predictive decision synthesis in a single closed-loop framework. This fragmentation raises a fundamental research question: Can LLMs be systematically integrated with enterprise knowledge, analytical tools, and forecasting modules to realize end-to-end, decision-oriented BI systems for retail digital management? This study was motivated by the hypothesis that effective BI in modern retail environments requires not only accurate data retrieval or prediction but also coherent orchestration of knowledge grounding, analytical reasoning, executable querying, and decision synthesis under a unified control paradigm. The primary objective of this research was therefore to design an LLM-driven BI framework that transforms natural language business inquiries into verifiable analytical operations, predictive insight, and actionable recommendations within an integrated decision loop. Achieving this objective involved several key challenges. First, vanilla LLMs lack enterprise-specific knowledge and an up-to-date organizational context, which often leads to hallucinated or noncompliant analytical conclusions. Second, mapping high-level business questions into correct and executable analytical operations requires multistep reasoning and reliable interaction with external tools, such as databases and forecasting engines. Third, unconstrained generation of analytical queries may produce syntactically invalid or semantically inconsistent SQL, undermining the verifiability of decision outcomes. Finally, most existing BI systems treat prediction as an isolated downstream module rather than an integral component of analytical reasoning and decision synthesis. Addressing these challenges is essential for building trustworthy and practical LLM-driven BI systems. To overcome these limitations, we propose Retail Intelligence and Decision Engine (RIDE), and LLM-driven BI decision framework for retail digital management. The core idea is to integrate enterprise knowledge grounding, reasoning–action analytical planning, grammar-constrained executable SQL generation, and predictive forecasting into a unified closed-loop architecture; In this process, RIDE first constructs knowledge-grounded analytical contexts from enterprise knowledge repositories to ensure factual consistency. It then uses a reasoning–action planning mechanism to decompose complex business inquiries into structured analytical steps and orchestrate tool-based operations. A grammar-constrained SQL decoding module is introduced to guarantee syntactic correctness and schema-aware executable querying. Finally, a forecasting component is embedded into the analytical loop to generate future-oriented predictions that directly support decision synthesis. Through this coordinated design, RIDE enables natural language business inquiries to be transformed into traceable analytical workflows, verifiable data operations, predictive insight, and actionable decisions. The main contributions of this work are threefold. First, we propose a novel LLM-driven BI decision framework that unifies knowledge grounding, analytical reasoning, executable querying, and predictive decision synthesis in a single architecture for retail digital management. Second, we designed a reasoning–action planning and grammar-constrained analytical execution mechanism that improves the reliability, traceability, and verifiability of enterprise analytical workflows. Third, we conducted extensive experiments on interactive analytical querying and retail forecasting benchmarks that demonstrate that the proposed framework consistently outperforms state-of-the-art text-to-SQL models, tool-augmented reasoning agents, and forecasting baselines in analytical correctness, reasoning efficiency, predictive accuracy, and end-to-end decision quality. Together, these contributions provide a practical foundation for next-generation intelligent, trustworthy, and decision-oriented BI systems in the retail industry. Related Work LLM-Based Enterprise Analytics and Knowledge Grounding Recent advances in LLMs have stimulated growing interest in applying them to enterprise analytics and BI systems. Early studies explored LLM-based question-answering capacity as it related to enterprises’ documents, conversational data analysis assistants, and retrieval-augmented generation frameworks that inject external knowledge to improve factual consistency. Knowledge-grounded architectures have been shown to reduce hallucination and enhance domain adaptation by retrieving relevant organizational documents, policies, or knowledge bases before generating responses. Parallel efforts in enterprises’ decision-support systems have incorporated knowledge graphs and semantic retrieval to improve explainability and compliance in analytical reporting. These studies demonstrate the potential of LLMs to facilitates enterprises’ understanding of questions and for knowledge-aware response generation. However, most existing approaches remain limited to text-level answering and report generation and do not include explicit mechanisms to perform verifiable analytical execution or to synthesize predictive decision outcomes. This limitation motivates the need for frameworks that integrate knowledge grounding with executable analytics and decision-oriented reasoning. Executable Analytical Query Generation Another closely related research direction focuses on translating natural language analytical requests into executable database queries. Text-to-SQL models, such as Structured Query Language–Pathways Language Model (SQL-PaLM; Sun et al., 2024), Parsing Incrementally for Constrained Auto-Regressive Decoding (PICARD; Scholak et al., 2021), and DAIL-Structured Query Language (DAIL-SQL; Gao et al., 2024), have significantly improved the accuracy of mapping natural language questions to structured SQL statements, and grammar-constrained decoding and execution-guided training further enhance query executability and schema awareness. Interactive benchmarks, such as BIRD-INTERACT, have enabled the systematic evaluation of multi-turn analytical query refinement. These advances establish strong foundations for natural language–driven database access. Nevertheless, existing text-to-SQL models primarily address query generation in isolation; they typically do not incorporate enterprise knowledge grounding, multistep analytical reasoning, or downstream predictive modeling and decision synthesis. As a result, their applicability remains limited to isolated analytical querying rather than end-to-end BI decision-making. Tool-Augmented Reasoning and Agentic Systems Recent studies have introduced tool-augmented reasoning frameworks that enable LLMs to perform multistep reasoning by using external tools. Representative methods, such as Reasoning and Acting (ReAct; Yao et al., 2022) and Toolformer, demonstrate that reasoning– action loops allow LLMs to iteratively plan, call tools, observe results, and refine subsequent actions. Agentic LLM systems further extend this paradigm to complex task execution, information retrieval, and interactive problem-solving. Research has shown that LLMs can orchestrate external resources to solve multistep tasks beyond pure text generation; however, existing agentic frameworks are mostly designed for open-domain question-answering or general task automation. They lack explicit integration with enterprise knowledge constraints, structured analytical objectives, and predictive decision pipelines that are central to BI scenarios. This gap highlights the necessity of designing reasoning–action architectures specifically tailored to executable enterprise analytics and decision-oriented workflows. Predictive Analytics and Retail Forecasting Deep learning–based predictive analytics has achieved notable success in retail demand forecasting and supply chain optimization, and related studies have also shown the effectiveness of advanced deep learning, transfer learning, and hybrid attention-based forecasting models in applied prediction tasks. Probabilistic forecasting models, such as Deep Autoregressive Recurrent Networks (DeepAR; Salinas et al., 2020) and temporal fusion transformers (TFTs; Lim et al., 2021) demonstrate strong performance on large-scale retail datasets, including the fifth Makridakis Forecasting Competition (M5) Forecasting benchmark. These methods provide accurate point and probabilistic forecasts that support inventory planning, replenishment control, and risk management. Nevertheless, existing forecasting models operate as independent predictive modules, typically requiring manually designed data pipelines and lacking natural language analytical interfaces. They are not directly integrated with enterprise knowledge retrieval, analytical query generation, or reasoning-driven decision synthesis. As a consequence, current predictive analytics systems remain disconnected from natural language business inquiry and end-to-end BI workflows. Overall, the existing research has advanced LLM-based enterprise question-answering, text-to-SQL query generation, tool-augmented reasoning, and retail forecasting as largely independent lines of study. However, a unified framework that coordinates knowledge grounding, reasoning– action planning, executable analytical querying, and predictive decision synthesis for retail digital management remains underexplored. This observation forms the foundation for the proposed RIDE framework, which aims to bridge these previously disjointed research directions into an integrated LLM-driven BI decision system. METHOD Method Overview We propose an LLM-driven BI decision framework (denoted RIDE) to support natural language– based analytical inquiry, enterprise data reasoning, and decision-oriented synthesis in retail digital management. The key motivation is to bridge the long-standing gap between human-like business questioning and machine-executable analytical operations while ensuring factual grounding, query correctness, and predictive reliability. Let q denote a natural language business query issued by an analyst or manager, such as “What is the projected inventory shortage risk for high-demand products next week?” The enterprise environment consists of (a) a structured database ​D,​containing transactional and operational data, and (b) an unstructured knowledge repository ​K, ​including business rules, policy documents, product descriptions, and management guidelines. The objective of the proposed framework is to generate a decision response y, which comprises analytical results, predictive insights, and actionable recommendations as shown in Eq.: ​y = F​(​q, D, K; Θ​)​ where ​F​(​ ⋅ ​)​ denotes the proposed end-to-end framework parameterized by Θ. Unlike conventional BI systems, which rely on predefined dashboards or rigid SQL templates, RIDE decomposes the decision-making process into a sequence of tightly coupled modules: • knowledge-grounded context construction, • reasoning and tool-oriented analytical planning, • natural language to executable SQL translation, • predictive analytics, and • decision synthesis. The overall architecture of the proposed RIDE framework is illustrated in Figure 1, in which the data flow from natural language query to final decision output, as well as the interaction among knowledge retrieval, analytical reasoning, database querying, and predictive modeling components, can be clearly observed. This modular design enables the model to perform complex multistep analytical reasoning while maintaining traceable, verifiable, and enterprise-compliant operations. Knowledge-Grounded Context Construction A fundamental limitation of vanilla LLMs in enterprise decision-making is the lack of domain-specific and up-to-date organizational knowledge, which often results in hallucinated or noncompliant recommendations. To mitigate this issue, we introduced a knowledge-grounded context construction module inspired by retrieval-augmented generation paradigms. In practice, the enterprise knowledge repository can be constructed from internal business documents, such as policy files, product descriptions, operational guidelines, and management rules, and may be maintained through a combination of manual curation and automatic extraction or periodic updating processes. Given an input query q, a dense retriever maps the query into a continuous semantic embedding, as shown in Eq.: ​​e​ q​ = ​f​ enc​(​q​)​​ where fenc(∙) denotes a transformer-based encoder. Similarly, each knowledge document ​d​ i​ ∈ K​is encoded as shown in Eq.: ​e​ ​d​ i​​ = ​f​ enc​(​d​ i​)​ The retriever identifies the most relevant enterprise knowledge documents using maximum inner product similarity, as shown in Eq.: ​Z = ​TopK​ ​d​ i​∈K​(​e​ q​ ⊤​ ​e​ ​d​ i​​)​ where ​Z​denotes the retrieved evidence set. The retrieved knowledge passages are concatenated with the original query to form a knowledge-enriched analytical context, as shown in Eq.: ​c​ 0​ = ​[​q; Z​]​ This context c0 provides factual and procedural grounding for subsequent reasoning and query planning. In practice, this mechanism allows the model to incorporate enterprise-specific business policies (e.g., replenishment rules, promotion constraints, supplier contracts) directly into its analytical reasoning, thereby improving factual consistency and organizational compliance. Moreover, the retrieved knowledge passages are also passed to the downstream SQL-generation stage as auxiliary grounding signals, where they help resolve schema linking ambiguities (e.g., business terms, attribute aliases, and entity descriptions) and support join-path selection when multiple relational paths are plausible in complex enterprise schemas. The overall knowledge retrieval and context construction process, together with the subsequent constrained SQL generation mechanism, is illustrated in Figure 2, which visually depicts how external enterprise knowledge is retrieved, integrated, and supplied to downstream analytical modules. Note. SQL = Structured Query Language; RIDE = Retail Intelligence and Decision Engine; LLM = large language model. Reasoning and Tool-Oriented Analytical Planning Retail business analysis often requires multistep operations, such as decomposing a high-level question into subqueries, retrieving intermediate statistics, invoking forecasting models, and integrating results before generating a final decision. To enable such structured workflows, RIDE adopts an interleaved reasoning–action planning strategy. At time step t, the language model maintains an internal reasoning state st, computed as shown in Eq.: ​s​ t​ = LLM​(​c​ t−1​)​ On the basis of this reasoning state, the model predicts the next analytical action, as shown in Eq.: ​a​ t​ ∼ P(​a​ t​|​ ​s​ t​)​ where at represents a tool-oriented operation, such as issuing an SQL query, invoking a forecasting service, or requesting additional knowledge retrieval. Once an action is executed by the corresponding tool, an observation ot is returned as shown in Eq.: ​o​ t​ = ToolExec​(​a​ t​)​ The context is then updated iteratively as shown in Eq.: ​c​ t​ = ​[​c​ t−1​; ​a​ t​; ​o​ t​]​ This iterative reasoning–action loop continues until a termination condition is reached, that is, when the model predicts a special end-of-analysis action. In practice, the system is moderately sensitive to the maximum reasoning-step budget: Overly small limits may truncate complex analytical workflows, whereas excessively large limits mainly increase computational cost with limited additional benefit once the reasoning process has converged. This design allows RIDE to mimic human business analysts who alternate among reasoning, querying data systems, inspecting results, and refining subsequent analytical steps. Compared with one-shot question answering, this planning mechanism provides two important advantages. First, it enables transparent and traceable analytical workflows, which are crucial in enterprise decision auditing. Second, it allows the system to dynamically adapt its analytical strategy on the basis of intermediate results, such as performing a deeper investigation when anomalies are detected in sales or inventory statistics. The iterative reasoning–action mechanism adopted in RIDE is visually illustrated in Figure 3, where the interaction among reasoning state updating, tool invocation, observation acquisition, and context refinement is shown as a closed analytical loop. Natural Language to Executable SQL Translation A core capability of BI systems is transforming natural language analytical requests into executable database queries. In RIDE, once the reasoning module determines that structured data access is required, a specialized SQL generation component is activated. Given the current context ct, the retrieved knowledge evidence Z, and database schema S, the SQL generator produces a candidate query as shown in Eq.: ​ ˆ y ​ sql​ = ​LLM​ sql​(​c​ t​, Z, S​)​ Here, ​Z​serves as an auxiliary semantic grounding source rather than a replacement for the structured schema, helping the model align user expressions with schema elements and choose more appropriate join paths in multi-table analytical queries. However, unconstrained autoregressive decoding often leads to syntactically invalid or semantically inconsistent SQL statements. To address this, we introduced grammar-constrained decoding to enforce SQL correctness during generation. At decoding step j, the probability of generating token wj is adjusted as shown in Eq.: ​P ′ ​(​w​ j​)​ = ​{​P​(​w​ j​)​, ​w​ j​ ∈ ​V​ valid​(​y​