Artificial intelligence is a subject that has become somewhat of a buzzword in the world of technology over the last year or so. It has made numerous headlines, with certain experts claiming that AI will replace half of the jobs in the world by 2050.
In this episode of LokadTV, we try and rise above some of the buzz and instead focus on AI’s applications. We discuss what these applications are likely to look like in the real world and how they could revolutionise the supply chain industry.
However, we can safely say that many supply chains are still in the dark ages - too frequently managed by Excel sheets and run in a very manual, human driven way. We estimate that it’s going to take decades yet before they fully embrace Artificial Intelligence. AI, Machine Learning and Deep Learning would work very well for supply chains however, due to the mass of data at hand and the fact that processing power is so much cheaper, more performant and more readily available nowadays.
Most actual supply chain challenges lie in edge cases, which take a lot of manpower to solve, and this is a problem that AI would figure out more efficiently - for example, if you’re a fashion company, being able to forecast how many people are likely to return products. But we’re not all Google, Facebook or Amazon, so how can regular companies employ experts in AI? Well, the solution is actually to outsource to another company (shameless plug: a company like Lokad)…
To conclude, we discuss how AI does have its downsides, as it forces companies to become more “rational” and often challenges a business’ status-quo, completely changing budgets, roles, etc., which is why it is no easy thing to implement.