ROLE OF AI-DRIVEN PRACTICE ON SUPPLY CHAIN MANAGEMENT: A STUDY IN KARACHI

Abstract

This paper explores how the use of artificial intelligence (AI) affects the performance of supply chain management (SCM) in organizations in Karachi, Pakistan. The rapid adoption of AI in worldwide supply chains requires local knowledge, especially in emerging economies. The research is filling the existing gap in terms of the impacts of AI applications on the operational efficiency, agility, and decision-making in the context of the Pakistani region. Its primary goals are an assessment of the level of AI usage and its impacts on such dimensions of SCM as quality, cost, and time. It was used in the form of a structured questionnaire that was offered to the professionals of the supply chain, and it yielded 300 effective answers. Cronbach's alpha and regression analysis showed the tool to be highly reliable, and there existed a positive relationship between AI practices and SCM performance (R 2 = 0.58, p < 0.01). According to the findings, predictive analytics, intelligent automation, and AI-aided forecasting increase supply chain visibility and responsiveness. It is strongly suggested that companies invest in AI training, infrastructure, and change management to maximize their AI potential. The Research is weak in terms of the cross-sectional data used to understand one metropolitan area. The research, however, provides a contribution to the available body of knowledge through the provision of practical evidence in a developing economy, as well as the strategic contribution of AI to realizing the resilience and efficiency outcomes in disturbed business conditions.