Artificial intelligence (AI) has great potential to revolutionize supply chain operations by enhancing demand forecasting, optimizing inventory management and streamlining logistics, to create more resilient and agile operations. However, to gain a competitive advantage, many companies are implementing AI before ensuring their supply chain systems are secure.
Without the proper data safeguards in place, AI-enabled systems can lead to significant vulnerabilities, including data breaches, biased decision-making and increased cost. These vulnerabilities can disrupt critical operations, damage reputations, and erode customer trust, causing long-term harm to the business. According to Gartner (hyperlink first link in link section), “Attacks on the software supply chain, including both proprietary and commercial code, pose significant security, regulatory and operational risks to organizations. A source estimates costs from these attacks will rise from $46 billion in 2023 to $138 billion by 2031.”
