Huge AI Growth in Supply Chain Market Seen: The Biggest Companies Behind the Boom

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Artificial intelligence (AI) has disrupted a host of industries worldwide as it leverages data and complex algorithms to vastly improve operational efficiency and marketing segmentation, and drive sales. As such, it comes as no surprise that the technology, in relation to supply chains, is slated to experience astonishing growth in the next six years. In a recent report by Zion Market Research, the artificial intelligence in the supply chain market is projected to grow from $1.59 trillion in 2021 to a staggering $12.8 trillion by 2028, at an annual growth rate of 41.5%.

This makes artificial intelligence one of the foremost technologies in this age and among the biggest stimulants of growth in various industries. In regard to supply chains, a growing number of industries, especially in the APAC region, have turned to deep learning and natural language processing to enhance a wide variety of applications. This has led to the Asia Pacific becoming the fastest-growing world region in relation to the use of AI in supply chains.

A major growth driver in the global market is the adoption of computer vision technology. Computer vision enables computers to extract information from visual media like photos and videos and generate insights. For instance, it can identify, label, and tag people, vehicles, car parts, and other visual inputs. Enterprises have expanded the use cases for such, as the technology now plays a role in robotics, anti-theft solutions, and labor, besides business intelligence.

One of the reasons why AI is so effective in supply chains is that it’s built to simulate and enhance human actions. With this, 93% of industrial manufacturing enterprises leverage technology in their operations.

So, where do these enterprises get their artificial intelligence applications?

Four Leading AI Providers for Supply Chains

A good number of global tech companies develop AI but there is a select group that offers the most flexible supply chain solutions, catering to various use cases. Not surprisingly, they are some of the world’s biggest tech companies. After all, they have the scale and resources to regularly develop large-scale systems.

IBM

IBM is known as one of the leaders in enterprise AI software and cybersecurity. It offers an end-to-end supply chain solution that gives users full visibility of all workflows that comprise operations. Leveraging blockchain technology, the platform enables enterprises to obtain real-time data from processes like orders, inventory, and potential disruptions. Moreover, IBM’s supply chain solution provides actionable insights and dramatically reduces the duration of disruption mitigation.

Microsoft

Microsoft has a slew of enterprise tools that streamline supply chain management. Foremost of which is Dynamics 365 Supply Chain. The platform harnesses predictive analytics and IoT integration to fashion solutions across areas like warehousing, production, transportation, and profitability. In addition, Dynamics 365 can suggest and enforce improvements in activities surrounding the supply chain such as sourcing, fulfillment, and logistics. The company also offers Microsoft Cloud for Manufacturing, which expands the manufacturing supply chain solutions of Dynamics.

Amazon

As the global leader in cloud computing, Amazon Web Services (AWS) presents a host of cloud-based AI solutions for supply chain management. The platform maps out, streamlines, and automates supply chain activities, which include inventory management, inventory, and warehousing. Users can leverage Amazon Forecast to predict variables like the volumes of orders and items to be sourced per week. Additionally, AWS has a drag-and-drop interface that allows non-tech-savvy users to easily learn its functionalities.

Google

The rivalry between Amazon and Google extends to the supply chain arena. In response to Amazon Web Services, the company behind the world’s largest search engine has Google Cloud for Supply Chain and Logistics for AI-driven supply chain management. It automates business processes, mitigates risks, boosts user productivity, and offers end-to-end visibility. Complimentary to this is the Supply Chain and Twin Pulse platform. The software enables users to visualize the entire supply chain and foster collaborations.

Besides these four, other AI providers like Intel and Nvidia offer outstanding AI solutions for supply chain management. And with the way AI in the supply chain market is growing, more notable players are likely to appear in the next few years.