Numerous industries are embracing the use of AI because of the technology’s transformative potential.
In the context of supply chains and logistics, many companies have been exploring AI-driven solutions to enhance their workflow efficiency and overcome the complexities involved in managing the movement of goods from companies to the end consumer.
As highlighted in a 2021 report by Gartner, a research and data insights firm, 50% of supply chain organizations are projected to invest in AI and analytics applications through 2024.
Looking at how the trend started, the need for artificial intelligence in supply chains rose sharply in 2020 following the emergence of the COVID-19 pandemic. The onset of the epidemic brought unprecedented challenges to supply chain organizations worldwide after the global health crisis disrupted economies, halted manufacturing, and led to erratic consumer behavior.
The fast-evolving situation left many supply chain operators grappling with an unprecedented level of uncertainty as long-standing conventional supply chain management models proved insufficient to cope with the scale and complexity of the disruptions.
The predicament compelled supply chain organizations across industries to seek more innovative tools and technologies. Consequently, a substantial number of them turned to AI solutions due to the advantages of the technology.