How AI will be a gamechanger in transforming global supply chain
While the trade war between The US and China, Covid-19, and Russia’s invasion of Ukraine changed the way we think of redundancy, flexibility, and security of supply, we are now staring into what could possibly be the biggest game-changer yet: The rapid evolution of Artificial Intelligence which has most recently accelerated investments from companies all over the world and spun a global discussion about how the technology will change our society – for better or worse.
The hype was triggered when Open AI’s Generative AI, ChatGPT, attracted 1 million users in just 5 days and 100 million users after two months. In comparison, it took TikTok nine months to hit the 100 million mark.
Generative AI is pushing the frontier and is spawning new startups and use cases like never before, and the race to leverage this new technology at scale is picking up pace. To understand what is at stake, firstly, let us have a look at what this technology offers: Generative AI leverages Large Language Models that can synthesise extremely large amounts of information and generate new information, i.e.
ChatGPT not only provides you with existing information, but also with a new version of the thing you need an answer for which is based on what the model is learning. This has the potential to revolutionise information in global supply chains by optimising and automating processes that are either manual or spread across different platforms.
Let me give you an example: Today, around 100 people are directly involved in moving a pair of sneakers from its origin to the end destination – that being salespeople, warehousing staff, customs officers, seafarers, and truckers. In the coming years, we will see a movement towards AI enabled systems that
