Effect of artificial intelligence and automation on the supply chain
DOI:
https://doi.org/10.32015/JIBM.2025.17.2.4Keywords:
Artificial Intelligence, automation, supply chain managementAbstract
Artificial Intelligence (AI) and automation have become transformative forces in global supply chain management, fundamentally reshaping how organizations plan, produce, and deliver goods and services. This paper examines how AI driven technologies, machine learning, robotics, predictive analytics, and the Internet of Things (IoT) improve efficiency, resilience, and sustainability across supply networks. The study identifies AI’s critical role in optimizing logistics operations, forecasting demand, and managing risks through data‐driven decision-making. The analysis highlights both the advantages of AI implementation, greater accuracy, cost reduction, and enhanced agility and its challenges, including data integration, ethics, high investment costs, and workforce adaptation. The paper concludes with recommendations for strategic adoption of AI and automation to ensure competitiveness and sustainability in the evolving digital economy.
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Copyright (c) 2025 Marko Galić, Tomislav Horvat , Ana Marić
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