AI Agents Revolutionize Supply Chain
Source: supplychainbrain.com
Keeping pace with artificial intelligence advancements can be challenging. Agentic AI has recently emerged, introducing “autonomous” systems that sometimes seem to eliminate the need for human involvement. AI agents are models executing specific tasks with minimal human input. They learn from previous interactions, comprehend context, and adjust strategies to meet objectives.
Pushpinder Singh, with IBM Consulting, notes that agentic AI exhibits intense cognitive activity, taking over and enhancing manual tasks. Although agentic AI is relatively new, it is evolving quickly. Singh notes that many clients are realizing how it can be beneficial.
Agentic AI Applications
Agentic AI is impacting supply chain procurement. It aids in creating and analyzing supplier contracts, which is especially helpful for manufacturers adjusting sourcing due to tariffs and trade disruptions. It also assesses risk, especially among third parties. Organizations require tools to audit supply quality and meet changing regulations. Centralizing large datasets for analysis is also a key function.
Supply Chain Planning
AI agents can also assist in supply chain planning. While production and demand plans change, agentic AI can react quickly to demand signals, which helps manufacturers handle buying pattern fluctuations caused by seasonal trends, supply chain issues, or product popularity. Distributors and retailers can also move inventory to appropriate locations.
Users must provide “constructive information” to create an AI agent for a specific task. Modern AI models are increasingly capable of self-learning, requiring less upfront data. A disadvantage of AI is its tendency to “hallucinate,” or produce incorrect conclusions. However, Singh suggests that task-oriented models like agentic AI are less prone to this.
In the near future, agentic AI is expected to advance significantly in sophistication and supply chain applications. Learning systems are shortening training cycles, sometimes to only a couple of weeks. According to Singh, agentic AI is ushering in a new supply chain operational paradigm, where interacting agents improve turnaround time. He also believes that a typical supply chain might use numerous AI agents to perform various tasks, adding that “it’s going to get more exciting.”