The Role of Artificial Intelligence in Supply Chain Optimization

Abstract

Artificial Intelligence (AI) has emerged as a transformative force in modern supply chain management (SCM), enabling organizations to improve efficiency, accuracy, and responsiveness. AI-driven tools such as predictive analytics, machine learning, and autonomous systems optimize processes like demand forecasting, inventory control, and logistics routing. By integrating real-time data from sensors, IoT devices, and ERP systems, AI enhances visibility and decision-making throughout the supply chain network. This article examines the role of AI in supply chain optimization, exploring its applications, frameworks, and future potential. The findings highlight that organizations leveraging AI technologies experience cost reduction, improved sustainability, and resilience against disruptions. However, the successful adoption of AI requires data governance, workforce readiness, and ethical considerations to ensure responsible and efficient supply chain transformation.