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The Role Of AI In Future-Proofing Supply Chains

Mar 06, 2025 - forbes.com
The article discusses the significant impact of supply chain disruptions, projected to cost global businesses over $1 trillion by 2025, due to geopolitical instability and natural disasters. It emphasizes the role of AI in mitigating these challenges by enhancing operational efficiency and reducing costs. AI can help businesses manage risks proactively, streamline operations, and overcome inherent flaws in traditional supply chain approaches. Despite the potential benefits, AI adoption faces challenges such as bias in AI models and human resistance to change, which can be addressed through diversified training data and awareness programs.

The article highlights how major companies like Walmart and Unilever are leveraging AI to optimize their supply chains. Walmart uses AI-driven systems for inventory management, while Unilever employs AI to identify alternative suppliers. The future of AI in supply chains includes generative AI for advanced data analytics and AI-powered digital twins for informed decision-making. These technologies can help businesses navigate disruptions from geopolitical changes and climate issues, ultimately leading to more resilient and sustainable supply chains.

Key takeaways:

  • In 2025, supply chain disruptions are expected to cost global businesses over $1 trillion due to geopolitical instability and natural disasters.
  • AI can significantly enhance supply chain efficiency by enabling proactive risk management and reducing operational expenses.
  • Major companies like Walmart and Unilever are already leveraging AI to streamline operations and gain a competitive edge.
  • Generative AI and AI-powered digital twins are emerging technologies that can help optimize supply chain operations and improve resilience.
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