Chaos in supply chains has been escalating due to the increasing reliance on artificial intelligence. The cost of disruption is expected to reach $184 billion by 2025, as outlined in a report from J.S. Held Global Risk Report. This figure typically represents what happens after a storm hits, with costs following suit.
However, when viewed as a product specification, the situation highlights an operating model that falls short. Most businesses still struggle to detect and respond quickly enough to supply chain disruptions, often resulting in costly delays. The report suggests that the focus should be on developing AI agents that can detect issues earlier and react faster, rather than just treating them as a matter of probability.
The lack of action taken by companies is largely due to their inability to integrate AI solutions into their existing systems. As a result, they continue to rely on manual processes and manual analysis, which only serves to exacerbate the issue. The report emphasizes that businesses must rethink their approach to supply chain management and adopt more proactive strategies to mitigate potential disruptions.