AI Innovations in Risk Management - A Case Study of Volvo AB’s Supply Chain Resilience

Abstract

This research aims to explore the potential of various artificial intelligence technologies in enhancing risk management within Volvo AB’s supply chain management. Application areas include forecasting, procurement, inventory planning and management, and the development of supply chain networks. Through an examination of the contributions of AI in these domains, this study seeks to give an overview of valuable insights into decision-making processes, operation and cost efficiency, mitigation of risks in the supply chain and fostering competitive advantages for companies. The study is based on a qualitative approach with a comprehensive literature review that provides an overview of advanced industry 4.0 technologies such as blockchain, internet of things, explainable artificial intelligence and cloud computing. These technologies hold considerable promise within different areas in the supply chain, due to their capacity to analyze extensive datasets effectively and discern patterns, thereby enabling more precise and accurate predictions of potential disruptions and risks. Furthermore, a case study with interviews involving expertise in the area from Volvo AB has been conducted to analyze the challenges and opportunities of AI adoption in risk management practices at Volvo AB. The concluding remarks of this research includes that Volvo AB must recognize both opportunities and implications in AI implementation. Integration of advanced technologies like artificial neural network (ANN), cloud computing and blockchain enhances resilience, efficiency and transparency within the supply chain. Specifically ANN, presents itself as a promising tool in identifying patterns, forecasting results and streamlining operations for Volvo AB. A successful implementation requires a comprehensive strategy including regulatory frameworks, change management and resource allocation. A strategic and holistic approach to AI implementation will aid Volvo AB navigate risks and maximize advantages, solidifying its leadership in the market.