Hey everyone, welcome back.
Today we're gonna really get into AI and with supply chain.
Yeah.
Which I think is something we're hearing
more and more about.
Definitely.
So I've got a whole stake of articles and research
and we're gonna break it all down,
figure out what's happening, why it matters
and what it all means for everyone listening.
I think it's a really interesting time right now
because we're kind of seeing this shift
from what we call industry 4.0.
Which is really all about automation
to what some are calling industry 6.0.
6.0 already.
Yeah, things move fast.
Wow.
And the idea here is that it's not just about
automating everything but it's more about
this kind of AI working together with people
for a more efficient and sustainable approach.
So it's not just like robots taking over warehouses.
Not quite, no.
Okay.
But it's definitely, I mean think about it this way.
Like, you know when you're shopping online
and you see those recommendations for things you might like.
That's AI and acronym, that's algorithms
trying to figure out what you need, what you want.
Okay, that makes sense.
And honestly, I do love it when they suggest something
I didn't even know I needed.
Right.
It's like how did they know?
But that's happening kind of everywhere.
It's not just on the customer side of things.
Oh, it's interesting.
AI is working behind the scenes to like make sure
those purchases get to you quickly and efficiently.
Like it's figuring out delivery routes,
real time tracking, the whole nine yards.
Oh, that's interesting.
That reminds me actually I was reading about
how some companies are using AI now
to like audit freight bills.
Oh, wow.
Yeah, like to make sure the invoices are accurate.
Interesting.
Yeah, and that nobody's getting overcharged.
Yeah, catching those errors.
And then another thing I was reading about,
I never would have thought of this using AI
to enhance worker safety in warehouses.
Oh, how so?
Yeah, so apparently by using like sensors and cameras,
the AI can identify potential hazards,
like even predict accidents.
Yeah, that makes sense.
Before they happen.
Leading to like a safer work environment for everybody.
Absolutely, it's all about analyzing those patterns,
those data points that maybe a human wouldn't catch.
But I think one of the less obvious ones
is transaction record integrity.
Oh, okay.
Which if you think about it,
it's like having a really, really good auditor,
constantly checking to make sure everything's accurate
and secure and preventing fraud.
Which helps maintain trust in the system.
Wow, so it's really a lot more than just making sure
my shoes arrive on time.
Right, it's pretty amazing.
It really is like this behind the scenes thing,
making sure everything's going smoothly.
Yeah.
It can't all be perfect, right?
Of course not.
What are some of the challenges?
Well, one of the big ones is data integration.
Okay.
Imagine like a company's trying to implement
this really advanced AI system,
but their inventory management is still on like paper records
from the 90s.
Oh, wow.
Yeah, trying to bring that all together
can be a real nightmare.
And then there's data availability in general.
AI algorithms need tons and tons of data
to really learn and get better.
And sometimes that data just isn't available
or it's not in the right format.
It's like trying to bake a cake without the ingredients.
So even if a company wants to like jump on this AI train,
they could be held back by their own like outdated systems.
Absolutely.
Wow.
Or just a lack of usable data.
Okay, well that's interesting to know.
So why don't we shift gears a little bit
and talk about why everybody's so excited about AI?
Like what are the potential benefits?
I mean, from what you've been reading,
it seems like AI has the potential
to make businesses so much more efficient.
And I mean, who doesn't love lower prices, right?
And then beyond just saving money,
AI can help create more resilient supply chains.
Like think about everything that's happened
in the last few years, pandemics, natural disasters,
all of this instability
and AI can actually help businesses predict
these disruptions and be more prepared.
So instead of being like caught off guard,
they can be proactive.
Exactly.
It's almost like having a crystal ball, right?
You can kind of see what's coming
and adjust your strategy.
That's amazing.
And that resilience that not only helps businesses,
but it kind of trickles down.
It helps the economy, it helps society as a whole.
That's really interesting.
So I mean, this is all starting to sound
really amazing and transformative.
But I think it would be irresponsible of us
if we didn't at least mention the big elephant in the room,
which is like jobs.
I think there's a lot of people out there
who are really worried about being replaced by robots.
Absolutely, that's a valid concern.
But I think it's important to remember
that AI is a tool and like any tool
it can be used in different ways.
And while, yeah, some jobs may change
or even become obsolete,
AI is also creating new opportunities,
especially in things like data analysis and AI development.
So it's not necessarily like robots versus humans,
but more like a shift in what skills are needed.
Exactly, just like the Industrial Revolution
led to new jobs and industries,
the AI revolution will likely do the same.
Okay, so it's about adapting and evolving.
And I mean, I guess that's a big part
of what we're talking about today.
Yeah, I think a key takeaway here
is that AI isn't about replacing people,
it's about helping people do their jobs better
and maybe freeing them up to do more creative work
or more strategic work.
Yeah, I like that.
So we've covered a lot, I feel like.
We talked about how AI is already being used
in the supply chain.
We talked about the potential benefits and the challenges.
But before we get too far ahead of ourselves,
I think it's time to bring in some expert opinions.
Do we have some insights from Dr. Jeffrey Hinton
who, you know, people call him the godfather of AI?
Yeah, the godfather.
And then we also have Chris Miller.
Okay.
Who wrote Chip War?
And he's got some interesting things to say
about like the limits of AI.
Yeah, let's hear it.
So why don't we start with Dr. Hinton?
Okay, so Dr. Hinton, he's a big believer
in the power of AI.
Okay.
And he thinks that it can really boost productivity,
which could lead to like economic growth
and better living standards for everybody.
Okay, that sounds promising.
Yeah.
But I'm sensing a butt coming.
Oh, you know, there's always a butt.
Yeah.
Dr. Hinton also raises concerns
about the potential societal impact.
Okay.
He worries that this increased productivity
could lead to greater wealth disparity.
Oh, okay.
The benefits might not be evenly distributed.
So kind of a double-edged sort, right?
Potential for progress, but also the risk of like
making existing inequalities even worse.
Exactly.
It highlights the need for, you know,
careful policies and regulations
to make sure that the benefits of AI
are shared by everyone.
Okay, yeah.
And that, you know, it's developed ethically.
So it's not enough to just like embrace the technology.
We also have to think about how it's used.
Absolutely.
Okay, well, that's something to keep in mind.
Definitely.
So what about Chris Miller?
Okay, so Chris Miller,
he offers a slightly different perspective.
He acknowledged that AI has this incredible potential.
But he also argues that its growth is limited
by very real constraints.
Oh, okay.
Particularly in chip manufacturing and power generation.
Like even the biggest tech companies
are struggling to get the resources they need
to actually power these massive AI systems.
So it's not just about the algorithms,
it's also about the actual like physical stuff.
Exactly.
He makes this really interesting comparison
to something called the Jeven's Paradox.
Okay.
Which basically says that as we get more efficient
at using a resource,
the demand for that resource actually increases.
Oh, okay.
So even as AI gets more and more efficient,
the demand for chips and energy could just skyrocket.
Wow.
It's almost like a treadmill.
Like we're constantly running faster.
But we're not really getting any closer
to where we wanna be.
It's a good analogy.
So we have these really optimistic views about AI.
But we also have to be realistic about these limitations
and potential risks.
Yeah.
Well, this has been fascinating.
I feel like we've just scratched the surface.
So lots to think about.
Lots to think about.
I think we're gonna leave it there for now.
Okay.
But we'll be back with more on AI and the supply chain.
Yeah.
There's more to come.
So stay tuned.
We'll be back.
Okay.
So welcome back to our deep dive on AI and the supply chain.
Yeah.
I feel like in the first part,
we talked a lot about how AI is already being used.
Right.
Like right now.
But now I'm curious, like what's next?
Yeah.
What does the future hold?
Are we talking like flying delivery drones?
Yeah.
So driving trucks anywhere.
You know, we may not have those drone deliveries quite yet.
Okay.
But the future is definitely looking pretty wild.
Okay.
Like imagine supply chains that can kind of run themselves.
Like they're autonomous.
They can adapt to changes without somebody, you know,
having to step in all the time.
So it's like the supply chain is developing its own brain.
Yeah.
That's a great way to put it.
Like constantly learning, constantly adjusting.
Like for example, AI could be used to analyze just tons
and tons of data.
Right.
Weather patterns to even social media trends
to predict demand with like incredible accuracy.
So knowing like exactly how much of something people
are going to want before they even want it.
Yeah. Weeks or even months in advance.
Wow. That would be amazing for businesses.
Right.
Yeah.
No more scrambling to keep up or having too much inventory.
Yeah. Yeah.
Okay. So what else, what else is coming?
Well, I think another really exciting area is logistics.
Okay.
We're talking about using AI to optimize everything.
Warehouse layout, transportation routes,
like squeezing out every little bit of inefficiency.
It's like having a super efficient air traffic controller,
but for like the entire flow of goods.
So this all leads to like.
A smoother, faster and cheaper supply chain.
Okay.
Which is good for everybody, businesses, consumers.
Right.
The whole economy really.
Yeah. Yeah. This is all sounding really good.
Yeah.
But I guess I keep coming back to the people.
Like as supply chains become more automated,
what happens to the people who are doing those jobs?
Right. That's a big question.
Yeah.
And I think the key is to remember that technology
should be helping people.
Right.
Not replacing them.
I mean, yeah, some jobs might change,
but AI also creates new opportunities.
Okay.
Especially in, you know, things like data analysis
and managing these systems.
So it's about making sure people have the skills
they need to succeed in this new world.
So it's not like AI versus humans.
Not at all.
It's more like AI handling the boring stuff
and freeing up humans to do what we're good at,
problem solving, being creative.
Okay. So what can people do to like stay ahead of the curve
and make sure they're ready for these changes?
I think the best advice is to just never stop learning.
Okay.
Stay curious, try new things, you know, explore AI.
There's tons of resources out there.
Yeah.
It's almost like learning a new language.
Yeah.
But the more you use it, the more comfortable you get.
Exactly.
So, okay, so we might not have like flying cars
and robot butlers just yet.
Not yet.
But it sounds like the future of AI
and the supply chain is already happening.
It is.
And it's gonna be pretty amazing.
Yeah. I mean, from self-adjusting logistics
to super accurate demand forecasting,
AI is gonna make things so much smoother and more efficient.
And hopefully more sustainable, right?
Oh, absolutely.
I mean, think about optimizing transportation routes,
cutting down on waste.
AI can really help us make the supply chain greener.
Okay, so as we kind of wrap up this part of our deep dive.
Yeah.
I think the takeaway here is that
the future of AI is about collaboration.
Between people and machines,
between businesses and customers.
Definitely.
And between like innovation and responsibility.
Well said.
So, as we move into the final part of our deep dive.
Let's keep in mind that this is not just about technology.
It's about how we use technology
to make things better for everybody.
I agree.
Okay, so welcome back to the final part of our
deep dive into AI and the supply chain.
We've talked about how AI is being used today.
Right.
We've talked about the potential and the challenges.
Yeah.
And we even tried to look into the future a bit.
The crystal ball.
Right. But before we wrap up,
I wanna kind of bring it back to the listener.
Sure.
Like, what does this all mean for you?
You know?
Yeah. I mean, it's easy to get lost
in the technology itself.
Yeah.
But really, it's about how it impacts people's lives.
Right. So let's talk about that.
Like, think about the things you buy,
the way you shop,
the speed at which you expect things to show up at your door.
Right.
How do you see AI shaping those experiences?
Well, for one, I think we can expect
even more personalized shopping.
Like, AI is already recommending products
based on what we've bought before.
Right.
Or what we've looked at online.
But in the future, I could go even further.
Like how?
Like, imagine walking into a store
having a virtual assistant
that guides you to exactly what you need
based on your preferences, your shopping lists,
or even like your mood.
So it's like having a fissional shopper.
Yeah.
But without the awkward small talk.
Exactly.
And, you know, we've talked about how
AI can make supply chains more efficient
and more resilient.
So that means things get to you faster.
There are fewer delays.
Okay.
And potentially even lower prices.
So are we talking like things arriving
before we even order them?
I mean, it's not impossible.
Like AI could be analyzing our past behavior
and predicting what we're gonna need.
Okay.
So companies could actually ship stuff
to like local distribution centers
before we even know we want it.
That's crazy.
Right.
It's like anticipating your needs
before you even have them.
Yeah.
But, you know, we've also talked about
some of the potential downsides.
Oh, of course.
What about like the risk
of these systems making mistakes?
Yeah.
Or even being used for like malicious purposes.
Those are valid concerns.
And I think it really highlights the need for,
you know, safeguards, regulations, ethical guidelines,
and just constant monitoring.
You make sure that this technology is used responsibly.
So it's not just about like embracing AI.
It's about shaping it.
Exactly.
It's about making sure it aligns with our values.
So to bring it all back to our original question.
Yeah.
Can the supply chain keep up with all this AI stuff?
Mm-hmm.
I think it's clear there are challenges.
Definitely.
But also incredible opportunities.
Yeah.
It's kind of a race, you know?
Right.
Between how fast the technology is developing
and our ability to actually implement it responsibly.
So it's like we're building the plane
while we're flying it.
Kind of feels that way sometimes.
Yeah. Yeah.
But I'm optimistic.
Me too.
I think that if we're careful and we work together,
we can really use AI
to make the supply chain better for everyone.
More efficient, more sustainable, more equitable.
Yeah.
And I think that's a great note to end on.
I agree.
It's been a really interesting journey,
exploring the world of AI.
Mm-hmm.
And its impact on the supply chain.
Yeah.
Thanks for joining us on this deep dive.
It's been a pleasure being here.
And listeners, remember,
the conversation doesn't end here.
Right.
Stay curious, stay informed.
Yeah.
And most importantly, keep asking questions.
The future is ours to shape.
And that's it for this episode of the deep dive.
See you next time.