The Financial Dynamics of AI-Enhanced Supply Chain Management: Trends and Insights

I. Introduction

The realm of supply chain management is undergoing a profound transformation propelled by the rise of Artificial Intelligence (AI) (Boopathi, S. et al., 2023). AI has emerged as a pivotal tool in streamlining supply chain operations, enhancing efficiency, and trimming expenses. This chapter delves into the financial dynamics of AI-enhanced supply chain management, aiming to illuminate the trends and insights shaping this ever-evolving domain. AI-Enhanced Supply Chain Management is more than a mere catchphrase; it stands as a strategic imperative for businesses seeking to maintain competitiveness in an increasingly intricate and globalized marketplace. As companies strive to meet growing consumer demands, address supply chain disruptions, and navigate the challenges posed by the digital era, AI (Anand, R. et al., 2023) provides a robust solution. Leveraging predictive analytics, machine learning algorithms, and real-time decision support, AI equips supply chain professionals with the means to make informed choices, thus enhancing the overall financial performance of their operations. This chapter intends to offer a comprehensive view of the transformative role of AI (Gupta, R. et al., 2023) in supply chain dynamics, with a specific focus on the financial ramifications. We will explore the financial benefits of AI (Sharma, S. et al.,2023) adoption, including cost reductions and revenue augmentation, and investigate the return on investment (ROI) associated with AI initiatives. We will delve into current trends in AI-enhanced supply chain management, providing insights into the rapidly evolving landscape, and offering practical recommendations for successful AI integration (Ait-Sahalia and Saglam et al. 2023).