Stay updated on the latest developments in Artificial Intelligence with our free subscription. We’ll send you a daily email, known as the myFT Daily Digest, summarizing the most recent news in this field every morning.
Leading global companies are turning to artificial intelligence (AI) to navigate complex supply chain challenges, especially in the face of geopolitical tensions and pressure to address environmental and human rights issues. Unilever, Siemens, and Maersk are among the organizations utilizing AI for negotiating contracts, finding new suppliers, and identifying links to controversial practices such as the alleged repression of Uyghur Muslims in China’s Xinjiang region.
Although AI has been used in supply chain management for years, the emergence of generative AI technology has brought new opportunities for automation. The COVID-19 pandemic and rising geopolitical tensions have further highlighted the need for companies to stay updated on their suppliers and customers. Countries like Germany have implemented supply chain laws that require companies to monitor environmental and human rights concerns, driving increased interest and investment in this area.
Maersk’s Chief Technology Officer, Navneet Kapoor, emphasizes the transformative impact of generative AI and its ability to develop chatbots and software capable of generating responses to human prompts. Maersk recently partnered with Pactum, a San Francisco-based business, to fund the development of a ChatGPT-like bot that negotiates contracts with suppliers on behalf of several Fortune 500 companies, including Walmart and Wesco.
Siemens, another multinational corporation, has also sought to reduce its dependence on Chinese suppliers and has engaged the services of Scoutbee, a Berlin start-up. Scoutbee offers a chatbot solution that helps identify alternative suppliers and vulnerabilities in the user’s supply chain. Michael Klinger, a supply chain executive at Siemens, highlights the geopolitical aspect as a key concern for the company.
Evan Smith, the CEO of Altana, a New York start-up, explains how their AI-enabled platform analyzes customs declarations, shipping documents, and other data to create a global map linking 500 million companies. Altana’s platform enables customers to trace products back to suppliers in Xinjiang and monitor if their products are used in Russian weapons systems.
A recent survey by logistics group Freightos shows that up to 96% of supply chain professionals are planning to adopt AI technology, although only 14% currently use it. However, concerns about job security remain, with nearly a third of respondents anticipating significant job cuts due to AI implementation.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
