Artificial Intelligence (AI) is one of the most talked about thing in the tech world right now. But is AI really as big of a deal as people are making it out to be? In short, yes. And it’s not because robots are on the verge of taking over the world. Although, they’re going to play a huge role in the future of humanity.
AI has nearly limitless applications in the business world. Already, about 60 percent of businesses surveyed by TechRepublic say they’ve already implemented AI in some fashion. This is because AI is designed to find the most efficient ways of performing actions.
Running a successful company is all about eliminating unnecessary inefficiencies. The combination of business interests and AI is a match made in heaven. The supply chain in particular will see some of the greatest benefits from the proliferation of AI. Here’s how AI is impacting (and will continue to impact) financial supply chains.
It’s a well-documented fact that AI is better at repeating tasks than humans. Why? Because humans are human. We make mistakes—all the time.
While this is just a part of our nature, it’s not inherent to AI. There’s maybe nothing AI is better suited for than automating repeating functions. And supply chains are full of these. Consider how many repeating tasks happen in a warehouse. What if you could just assign a robot to do those jobs perfectly every time? That future is here thanks to AI. You may also rely on a warehouse management system to efficiently manage the day to day operations in your warehouse. If you need to store temperature-sensitive products and materials, you may build or rent a climate controlled storage facility.
Financial Analysis Tools
AI is also making its presence known beyond the physical realms of the supply chain. For example, financial analysis tools can analyze billions of rows of data from a variety of sources in mere moments. Why is this valuable? AI financial analysis tools can lead to some incredibly in-depth insights such as spotting inefficacies or waste, discovering new opportunities for growth, and improving productivity by investigating client performance. Of course, these are just a handful of the myriad of benefits financial analysis tools can provide when backed by AI.
You might get frustrated with the virtual assistant on your phone when they misinterpret your requests. But there’s no denying that these kinds of services are continually getting better. Chatbots are another way AI is making its presence felt on the supply chain. Most chatbot and virtual assistant programs utilize AI in some fashion in order to improve recognition. Due to this, chatbots are continually getting better at fulfilling customer needs.
Management and Ergonomics
Software can additionally help things run more smoothly at every step of the supply chain by helping management find its own inefficiencies. Some managers might shy away from letting AI how they can get better. But these are the managers who are bound to fail. Those who adapt to the advent of AI will uncover massive inefficiencies in the workflows around them.
One of the biggest causes of lost productivity in a supply chain setting comes from logistical and ergonomic issues within warehouses. Data synthesized through AI can aid in discovering weak points in the supply chain. Beyond that, AI can also be implemented with quality assurance. A computer can do a better job of identifying errors than a human. It only makes sense that AI should be given the task of QA in the supply chain.
Last but not least, driverless vehicles are going to be a huge supply chain innovation thanks to AI. Logistics will never be the same once all transport vehicles are automated. This move will of course save companies time and money in a variety of ways. A driverless vehicle can go all night, without taking any breaks. Due to this, it can operate with idea efficiency, while still cutting down on transit time. The number of accidents will also be reduced with this move. There are countless benefits that will come to financial supply chains because of driverless vehicles.
These are a few of the major ways AI is completely changing how we can look at financial supply chains. The coming years will bring even more groundbreaking innovations on this front.