diff --git a/.gitignore b/.gitignore
index ace00ac8ad581331eced697688888b9bcb69cde3..f4fe304d17b3a578f5fce6763ee0f5db8255520f 100644
--- a/.gitignore
+++ b/.gitignore
@@ -23,4 +23,6 @@ docs/source/lso.rst
 docs/source/lso.*.rst
 docs/source/modules.rst
 
+artifactory/
+
 .env
diff --git a/ansible_inventory_generator/app.py b/ansible_inventory_generator/app.py
index 4eed9d02f97656e53d56cc8bdb0799e9f4e5144d..ecd806475e37fb39247708466a4682ea1c52a476 100644
--- a/ansible_inventory_generator/app.py
+++ b/ansible_inventory_generator/app.py
@@ -1,3 +1,4 @@
+import os
 import shutil
 import sys
 import tempfile
@@ -78,9 +79,11 @@ def generate_host_vars_and_hosts_file(router_subscriptions: list, temp_dir: Path
 
 
 @contextmanager
-def safe_write(temp_dir: Path, old_host_vars_dir: Path) -> Generator[Path, None, None]:
+def safe_write(temp_dir: Path) -> Generator[Path, None, None]:
+    settings = load_settings()
     temp_dir.mkdir(exist_ok=True)
-
+    ansible_inventory_path = Path(settings.aig_ansible_inventory_path)
+    ansible_inventory_path.mkdir(exist_ok=True)
     try:
         yield temp_dir
     except Exception as e:
@@ -88,11 +91,16 @@ def safe_write(temp_dir: Path, old_host_vars_dir: Path) -> Generator[Path, None,
         typer.echo(f"Error: {e}")
         sys.exit(1)
     else:
-        if old_host_vars_dir.exists():
-            shutil.rmtree(old_host_vars_dir)
+        host_vars = ansible_inventory_path / "host_vars"
+        if host_vars.exists():
+            shutil.rmtree(host_vars)
 
-        shutil.copytree(temp_dir, old_host_vars_dir)  # Copy new host_vars dir
-        shutil.copy(temp_dir / "hosts.yaml", old_host_vars_dir)  # Copy new hosts.yaml file
+        hosts_file = ansible_inventory_path / "hosts.yaml"
+        if hosts_file.exists():
+            os.remove(hosts_file)
+
+        shutil.copytree(temp_dir / "host_vars", ansible_inventory_path / "host_vars")  # Copy new host_vars dir
+        shutil.copy(temp_dir / "hosts.yaml", ansible_inventory_path)  # Copy new hosts.yaml file
         shutil.rmtree(temp_dir)
 
 
@@ -111,9 +119,7 @@ def generate_inventory_from_api() -> None:
         sys.exit(1)
 
     temp_dir = Path(tempfile.mkdtemp())
-    old_host_vars_dir = Path(settings.aig_ansible_inventory_path)
-
-    with safe_write(temp_dir, old_host_vars_dir) as temp_dir:
+    with safe_write(temp_dir) as temp_dir:
         generate_host_vars_and_hosts_file(router_subscriptions, temp_dir)