Why AI won't fix Britain's supply chains
Businesses hoping AI will solve their supply chain problems risk wasting their investment unless they first fix weaknesses in their data, skills and management, according to new research published in the Benchmarking: An International Journal.
New research from the University of East London suggests that businesses relying solely on artificial intelligence (AI) to fix their supply chain issues may be wasting their investment. While AI and advanced technologies like big data systems, cloud computing, and the Internet of Things (IoT) can assist in forecasting demand and responding more quickly to disruptions, the study emphasizes that these tools are only valuable if businesses first address weaknesses in their data, skills, and management.
The researchers warn that investing in AI without laying the proper groundwork is a recipe for failure. To truly benefit from AI, companies need to ensure they have reliable data, skilled personnel, clear decision-making processes, and managers who trust and understand the information at hand. Without these foundational elements, AI can become an expensive endeavor that yields little real value.
The study, led by Dr. Godfried Adaba from the University of East London and the University of Hertfordshire, analyzed over 500 academic papers on the use of big data in supply chains and business operations. The authors recommend that businesses bolster their data governance, analytical skills, and decision-making processes before scaling up their use of advanced analytics.
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