CHALLENGES AND POSSIBILITIES OF SUPPLY CHAIN MANAGEMENT WITH AI INTEGRATION

This Chapter explores the transformative role of Artificial Intelligence (AI) in modern Supply
Chain Management (SCM), focusing on its potential to turn traditional supply chain models into
intelligent, responsive systems. Highlighting AI's capabilities in machine learning, natural language
processing, robotics, and IoT, the article discusses their applications in demand forecasting, customer
service, warehouse automation, and real-time tracking. It addresses the challenges in AI integration,
such as data quality, system compatibility, model complexity, and organizational resistance, and
proposes solutions like improved data management, employee training, and fostering a data-driven
culture. The article also showcases success stories from major companies, demonstrating AI's impact in
enhancing efficiency and decision-making in SCM. Concluding with future predictions, it emphasizes
AI's growing significance in making SCM more personalized, sustainable, and resilient, underscoring
the need for strategic approaches to overcome implementation challenges and harness AI's full potential
in SCM.