The Role of Artificial Intelligence in Enhancing Demand Forecasting and Supply Chain Decision-Making

This research examines the influence of artificial intelligence (AI) on the precision of demand forecasts and the decision-making processes within supply chains. This study seeks to assess the impact of AI technologies on forecasting, resource allocation optimization, and decision-making processes within supply chains, as organizations increasingly depend on AI-driven solutions for improved efficiency and accuracy. The research used qualitative approaches, namely in-depth interviews with 48 industry experts, to examine the actual uses of AI in supply chains, emphasizing difficulties, advantages, and future trends. The findings demonstrate that AI significantly improves forecasting precision by using extensive information, identifying trends, and delivering real-time insights. Organizations using AI-driven technologies indicate enhanced inventory management, superior demand forecasting, and less operational expenses. Moreover, the significance of AI in improving supply chain agility, mitigating risks, and fostering supplier cooperation is emphasized. Nonetheless, the report also delineates many hurdles, including data quality concerns, connection with older systems, and employee reluctance. Notwithstanding these challenges, the overall influence of AI on supply chain decision-making is mostly beneficial, with firms indicating enhanced operational efficiency and resilience. The results indicate that as AI technology advances, its capacity to enhance supply chain operations, decrease costs, and augment sustainable practices will expand. The report emphasizes the need of tackling implementation problems, especially with data governance and workforce adaption, to fully use AI’s promise in supply chain management.