AI in Supply Chain Risk Management - A study on how artificial intelligence can be applied on supply chain risk management and its effects on decision-making using Technology-Task Fit Theory

Abstract

Supply chains have become increasingly complex and demanding. Yet, supply chains play a vital role for almost all companies regardless of industry. Previous research and literature have proposed AI as a powerful business tool with the ability to increase visibility and to perform supply chain management (SCM) activities. But despite the fact that AI has shown promise in the area of SCM, its application to supply chain risk management (SCRM) and its effects to decision-making remains underexplored and lacking context. Through the lens of a theoretical framework based on Technology-Task Fit (TTF) theory and using a qualitative research approach this thesis investigates how AI can be applied to SCRM, what factors impact its utilization and the effects its utilization will have on SCRM decision-making.The findings indicate that AI can be applied both to automate and to augment SCRM tasks throughout the different phases of SCRM. However, the thesis identified the fit between AI and SCRM tasks and the degree of utilization as playing an important role in determining the performance and the effects on decision-making.