The Role of Artificial Intelligence in Supply Chain Management

Abstract

The development of AI has made it possible to envision “thinking robots” that are capable of learning and taking over human roles. Since the late 1970s, AI has shown considerable promise in improving human decision-making processes and, by extension, productivity across a wide range of business endeavours, thanks to its ability to recognise business patterns, understand business phenomena, seek information, and intelligently analyse data. While artificial intelligence has many practical applications, it is seldom applied in supply chain management (SCM). In order to realise AI's numerous potential benefits, this chapter explores the different areas of AI most suited to tackling real-world SCM difficulties. This chapter of the book achieves precisely that, analysing the history of AI's use in SCM applications and identifying its most potential future uses.