AI Integration in Supply Chain Management: Challenges and Opportunities

Abstract

ABSTRACT The alignment of Supply Chain Management (SCM) with Artificial Intelligence (AI) is a revolutionary transition with profound implications for contemporary business organizations. This article critically analyzes the strategic dilemmas and new opportunities that come with the adoption of AI in SCM. Based on a comprehensive review of scholarly research and practice, it discusses some of the key hurdles like data integration challenges, technological adoption barriers, and organizational preparedness. At the same time, the research examines the capabilities of AI to improve supply chain performance by optimizing demand forecasting, inventory management, and logistics. It also evaluates the wider influence of AI on supply chain stakeholders such as suppliers, manufacturers, distributors, and customers, emphasizing the interdependence of digital transformation along the value chain. Through the integration of theoretical models and real-world wisdom, this research provides actionable recommendations to organizations with a desire to use AI in driving supply chain efficiency and competitive advantage. The results contribute towards a better insight into the use of AI to transform SCM and suggest avenues towards successfully overcoming challenges of implementation and maximizing innovation-based opportunities. Keywords: Artificial Intelligence (AI), Supply Chain Management (SCM), Data Integration, Technology Adoption, Organizational Readiness, Demand Forecasting, Inventory Optimization, Logistics, Stakeholder Impact, Strategic Transformation, Digital Supply Chain, Business Innovation.