The Transformative Impact Of Artificial Intelligence On Supply Chain Management

Abstract

Artificial Intelligence (AI) is revolutionizing supply chain management (SCM) by enhancing efficiency, accuracy, and decision-making processes. This paper explores the transformative impact of AI on SCM, examining key AI technologies such as machine learning, predictive analytics, autonomous systems, and natural language processing. It delves into the applications of AI in demand forecasting, inventory management, procurement, logistics, and risk management, highlighting significant improvements in operational efficiency and cost reduction. Despite the clear benefits, challenges such as data quality, technological complexity, cyber security risks, and resistance to change persist. The paper concludes by discussing future directions, including advanced predictive analytics, IoT integration, block chain for enhanced security, and human-AI collaboration, underscoring AI's potential to drive further innovation and efficiency in SCM.