This paper delves into the intricate process of integrating Artificial Intelligence (AI) into legacy inventory systems, a critical challenge in the realm of modern inventory management. It presents a comprehensive analysis, exploring the multifaceted barriers encountered in this integration, particularly in traditional industries. The study identifies and examines key technical, organizational, and financial challenges, offering a nuanced understanding of the complexities involved. Innovative solutions and strategies are proposed to address these challenges, drawing on a rich array of existing literature and real-world case studies. The paper highlights successful integrations of AI in various sectors, extracting valuable lessons and best practices. It contributes significantly to the existing body of knowledge by bridging theoretical research with practical applications, providing insights that are both profound and actionable. This research not only illuminates the path forward for traditional industries seeking to embrace AI in inventory management but also serves as a valuable resource for practitioners and researchers in the field. The findings and strategies outlined in this study offer a roadmap for successful AI integration, marking a pivotal step in the evolution of inventory management practices.