Barriers Related to AI Implementation in Supply Chain Management

Abstract

The primary objective of this paper is to offer a structured and comprehensive list of the barriers associated with implementation of Artificial Intelligence (AI) solutions in Supply Chain Management (SCM). While the broader field of AI has made rapid advances in a relatively short period of time, there are significant barriers that still need to be addressed to harness the true potential of AI. SCM’s dependency on multi-actor collaboration, disparate data sources, unwillingness of actors to embrace AI, change management issues, and lack of AI governance framework poses significant barriers for successful implementation of AI. Drawn from extensive literature review as well as real-world experience, this paper systematically explores and compiles a robust list of barriers of AI implementation in supply chain functions by categorizing them and elaborating their impact at inter- and intra-organizational SCM. Lastly, the paper offers recommendations for practitioners, policymakers, researchers, and governments on how they can work together for AI to be successful.