Artificial intelligence for Supply Chain Management: Disruptive Innovation or Innovative Disruption?

This article examines the theoretical and practical implications of artificial intelligence (AI) integration in supply chain management (SCM). AI has developed dramatically in recent years, embodied by the newest generation of large language models (LLM) that exhibit human-like capabilities in various domains. However, SCM as a discipline seems unprepared for this potential revolution, as existing perspectives do not capture the potential for disruption offered by AI tools. Moreover, AI integration in SCM is not only a technical but also a social process, influenced by human sensemaking and interpretation of AI systems. This article offers a novel theoretical lens called the AI Integration (AII) framework, which considers two key dimensions: the level of AI integration across the supply chain and the role of AI in decision-making. It also incorporates human meaning-making as an overlaying factor that shapes AI integration and disruption dynamics. The article demonstrates that different ways of integrating AI will lead to different kinds of disruptions, both in theory and practice. It also discusses the implications of AI integration for SCM theorizing and practice, highlighting the need for cross-disciplinary collaboration and sociotechnical perspectives.