Abstract
The primary objective of this paper is to offer a structured and comprehensive list of the barriers associated with implementation of Artificial Intelligence (AI) solutions in Supply Chain Management (SCM). While the broader field of AI has made rapid advances in a relatively short period of time, there are significant barriers that still need to be addressed to harness the true potential of AI. SCM’s dependency on multi-actor collaboration, disparate data sources, unwillingness of actors to embrace AI, change management issues, and lack of AI governance framework poses significant barriers for successful implementation of AI. Drawn from extensive literature review as well as real-world experience, this paper systematically explores and compiles a robust list of barriers of AI implementation in supply chain functions by categorizing them and elaborating their impact at inter- and intra-organizational SCM. Lastly, the paper offers recommendations for practitioners, policymakers, researchers, and governments on how they can work together for AI to be successful.
Highlights
The World Economic Forum has described the modern day as an era of Fourth Industrial Revolution where everything is connected, and that we have access to unprecedented computing power and storage capacities (World Economic Forum, 2016)
The primary objective of this paper is to offer a structured and comprehensive list of the barriers associated with implementation of artificial intelligence (AI) solutions in supply chain management (SCM)
This has led to explosion of data, which in turn has enabled an exponential leap for technologies like Artificial Intelligence (AI), Internet of Things (IoT), robotics, and quantum computing (The Royal Society, 2017; Bernhardt, 2019)
Summary
The World Economic Forum has described the modern day as an era of Fourth Industrial Revolution where everything is connected, and that we have access to unprecedented computing power and storage capacities (World Economic Forum, 2016). The core genesis of supply chain management is that, to serve the customer better and maintain a competitive market position, the various tasks and actions that need to happen to deliver flow of information/goods from supplier to the end customer and vice versa, requires a coordinated and collaborative effort at inter- and intraorganizational levels It believes that higher degree of alignment among various actors of the supply chain will lead to, either direct or indirect benefits to the bottom line of each actor, thereby increasing the efficiency of the overall supply chain (Ellram, 1991; Min & Mentzer, 1999; Stock & Boyer, 2009).
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