ABSTRACT
Artificial intelligence and data analytics are currently enjoying success as two of the most prominent present-day technologies. While many industries are still struggling to deal with the repercussions of the pandemic, there are a few that seized the chance to widely implement these contemporary technologies. The supply chain industry is one of these. According to recent studies, the use of artificial intelligence in the supply chain has improved industrial efficiency, dynamic logistical systems, and real-time delivery controls. As a result, supply chain management (SCM) is focusing on replacing assets with information and becoming more information-intensive. A digital supply chain offers much more insight into how the chain is operating. Supply chain owners can build more complicated partnerships with more suppliers leading to the improved near real-time visibility of supplier performance and customer needs. As a result, they are protected against the majority of sources of interruptions. Speed, customization, and choice—three today’s pillars of excellence in demand fulfillment—are targets of digital supply chains, which are more customer-focused. The goal of artificial intelligence is to build “thinking machines” that can duplicate, replace, and learn from human intelligence. AI has shown tremendous promise in increasing human decision-making processes and the resulting productivity in a number of business endeavors because of its ability to identify business trends, understand commercial processes, gain understanding, and accurately interpret information. Despite all of its potential, the digital supply chain does carry some concerns because it makes use of new technologies and “turns on” shopfloor equipment that was never intended to be online. This chapter investigates the track record of AI applications to SCM success and the most advantageous SCM domains for AI application. Several AI subfields that are best suited for resolving real-world issues and risks will also be explored in order to copiously realize the potential advantages of AI for digital SCM.
