AI agents shouldn’t run your supply chain (www.techradar.com)

A new class of AI agents is emerging that aims to manage supply chain operations autonomously, navigating applications, documents, and workflows. Although the idea of AI optimizing inventory and shipments without human intervention is appealing, experts warn that supply chains are complex physical systems requiring real-time situational awareness and human context, which current AI agents lack. Decisions in supply chains often hinge on nuanced factors such as unrecorded negotiations or strategic promotions that won't be captured in typical data sets. To advance AI application in supply chains, a focus on “Physical AI” is essential. This concept emphasizes continuous physical visibility through real-time data collection, such as temperature and movement monitoring. Effective AI in this context should model probabilities rather than produce deterministic outputs, allowing for a nuanced interpretation of physical realities. Instead of fully automating supply chain management, the future lies in AI acting as an advisor, amplifying human decision-making by providing insights and detecting anomalies, ensuring robust and informed operational efficiency.