26.5 C
Singapore
Friday, February 23, 2024
HomeSupply ChainKey Benefits by Integrating Blockchain and AI Technologies

Key Benefits by Integrating Blockchain and AI Technologies

The technologies of both Blockchain and Artificial Intelligence (AI) can be integrated to enable efficient supply chain management. These two technologies can improve the experience for end users and suppliers by enhancing automation and scalability. They boost connectivity within supply networks, and enhance commodity movement traceability.Today’s supply chain issues affect a wide range of products, including vehicles, gaming consoles, and everyday groceries. Innovative solutions incorporating blockchain and AI technologies are being used by businesses to address these critical supply chain issues. This article delves into the key benefits of integrating both blockchain and AI technologies. AI can read, comprehend, and correlate data quickly and thoroughly. This capability elevates blockchain-based business networks to a new level of intelligence. The combination of blockchain and AI technologies could result in a digital ecosystem that is intelligent, dynamic, and safe.

AI-Driven Smart Contracts

Blockchain platforms are synonymous with smart contracts, which are self-executing contracts with terms encoded directly into code. When preset circumstances are met, these agreements independently start and enforce actions. On the other hand, AI refers to the machine imitation of human cognitive functions, including as learning, thinking, and problem-solving.These smart contracts provide dynamic and intelligent agreements that can adapt, learn, and make decisions based on data and changing conditions. By combining the capabilities of smart contracts with AI technologies, complex contract decision-making procedures may be automated, with higher level of sophistication and efficiency.Smart contracts powered by AI are more adaptable and have the ability to adjust terms and actions depending on data that is updated in real time. This makes the agreements relevant and ideal even in changing circumstances.Through the integration of AI, smart contracts are able to carry out complex decision-making procedures. It examines a broader range of variables and provide well-informed options. By integrating AI into smart contract development, potential obstacles may be foreseen and risks can be assessed. It may make it possible for smart contracts to automatically carry out risk-reduction measures.

Smarter Scalability across Geographies

Scalability of data processing and storage are two factors to take into account when implementing blockchain for supply chain operations. Every network node records every transaction, which results in a substantial amount of data storage. The need for processing and storage grows exponentially as the supply chain expands and more transactions take place. Applications utilising AI and blockchain provide scalability, enabling large databases to be accessed from multiple locations across the globe. This is especially useful when managing expensive goods like diamonds and prescription medications, which can result in fraud or counterfeits. Less time can be dedicated to data validation, freeing up more time to deliver those goods in a secure and safe manner. Due to greater scalability, the technologies also improve the inventory management system, lower courier costs, and accelerate the development of customer trust.AI can improve scalability and security while addressing the personalisation and governance issues for blockchain-based technologies. On the other hand, blockchain can provide explanation, privacy, and trust to AI-based applications.The technologies expedite the establishment of customer trust, reduce courier costs, and enhance the inventory management system through enhanced scalability.

Transparency and Traceability in Supply Chain

Supply chain management is made more transparent and secure by blockchain. It is an un-hackable, decentralised ledger that openly and securely logs each transaction. By using AI and blockchain, organisations can improve supply chain operations and decision-making, which will improve customer satisfaction and business performance.Businesses that use AI and Blockchain to manage their supply chains can collect and evaluate information about how products are manufactured or sourced. A Blockchain-based system can store all of a commodity’s information, making it readily accessible to all relevant parties. More significantly, this provides logistics partners with unprecedented ability to track and trace the goods. Furthermore, they can demonstrate legitimacy, particularly in the case of expensive goods like gold jewellery and medical supplies. The end user may also receive information about the products, such as authenticity, through word-of-mouth.

Enhanced Data Security

Blockchain can be utilised as a decentralised, highly encrypted ledger platform that only authorised users can access. When Blockchain is integrated with AI, it can decentralise and secure data that AI collects, improving data security and privacy. Blockchain technology will create unchangeable, immutable records that contain all the information, factors, and procedures that AI uses to make decisions. The entire process will be easier to audit as a result. Examples from the real world include Blackbox AI, which uses machine learning and blockchain to automate and expedite workflow, management, and verification procedures. Blockchain’s digital record provides information about the origins of the data it uses as well as the architecture underlying AI. An audit trail is produced when blockchain is used to store and distribute AI models, and combining blockchain with AI can improve data security.


The full content is only visible to SIPMM members

Already a member? Please Login to continue reading.


Jayana Das
Jayana Das
Jayana Das has extensive experiences in the telecom sector of networks and connectivity, and she is currently a consultant of bid management. Jayana holds a Master of Science degree in Computer Integrated Manufacturing from Nanyang Technological University (Singapore). She is a member of Singapore Institute of Purchasing and Materials Management (SIPMM), and she completed the Specialist Diploma in Digital Procurement (SDDP) on December 2023 at SIPMM Institute.
RELATED ARTICLES

Most Read