Pros and Cons of AI

Pros &Cons of AI within manufacturing and supply chain.
Prepared for Professor Roger Naimool

Prepared from Sonila Dine #101186303
Introduction
The fourth industrial revolution is currently underway. Artificial intelligence , machine learning, and Big
Data advancements have fueled the start of a new, algorithm-based epoch. Companies can now
automate a wide range of tasks, reducing errors, downtime, and costs. AI has the potential to greatly
benefit supply chains in particular. It's important to note that artificial intelligence is frequently confused
with machine learning. Though they are intertwined, and experts commonly refer to machine learning
as a subset of AI, AI allows for self-generated decision-making. AI will not only collect data, learn about
trends in the data, and make complex recommendations; it will also formulate and carry out its own
course of action. As with any modern technology, it has both advantages and disadvantages. It's
important to consider the advantages and disadvantages of AI in the supply chain to ensure you're using
the best tools for your company's particular needs.
Pros
Robotics, smart warehouses, self-driving cars, and advanced predictive analytics (e.g., forecasting) will
all increase workplace safety, minimize costs, and streamline processes and systems.
Weather patterns, GPS information, and reroutes are all examples of data that can be gathered by AI
and used to affect delivery times. This will help the sales team anticipate more accurate product delivery
times by alerting consumers to real-time inventory changes. As a consequence, businesses are better
able to offer excellent customer service to both new and current clients.
Supply Change Optimization
Transparency and data are improved when AI technology is used in the supply chain phase. It is used to
improve manufacturing processes and customer service. To obtain a more in-depth understanding of a
potential problem, data from various devices is collected and analyzed in real-time. Manufacturers can
then make informed decisions about the industry. In the case of a mishap, AI assists in reducing the
expense and time associated with warehousing and shipping. AI tools and solutions can also assist in the
scheduling of factory activities, identifying demand and supply gaps, and avoiding over or under
production.
A More Effective Generative Design Process
Manufacturers would be able to develop better ways to build their goods as a result of AI. The designer
will input product specifics with generative designs. The type of content, suitable manufacturing
methods, budget, and timeline are all examples of such information. In addition, the designer has the
ability to input all possible constraints. Information can be processed using an AI algorithm to match a
list of potential product choices. The chosen solution is then put to the test in real-world conditions. The
unique feature of generative design is that it eliminates human bias in the design process. After that, it
suggests more appropriate output demands.
Process Quality Improvements
Artificial intelligence allows for more advanced manufacturing methods and higher product quality. It
ensures that products comply with quality standards and regulations. Manufacturers can accomplish this
by utilizing equipment that uses AI technologies such as machine learning and big data. Tracking sensors
have the potential to be used in logistics and haulage. It will aid in monitoring location, inventory, freight
charges, and other tasks. Inventory automation, according to reports, improves process services by 16%.
Inventory turnovers are also increased by 25% at the same time. This inventory data is used to detect
any impending faults that may impact the product delivery service. As a result, the company can achieve
a higher level of specialization. It also reduces downtime in the process and boosts productivity.
AI chatbots allow you to handle client inquiries using human-like interactions. As a result, it contributes
to the freeing up of human resources. This technology enables manufacturers to respond quickly to
client requests and inquiries. For example, a custom writing review service such as Online Writers Rating
may need to go through thousands of papers per day. They'll still have to deal with customer inquiries at
the same time. Chatbots, on the other hand, provide required customer service while employees
concentrate on the documents.
Cons
AI is still developing, with various research and development ventures taking place around the world.
However, when algorithms start creating other algorithms, that is then auto executed, a "black box"
circumstance emerges. Scientists and AI engineers may struggle to unravel the complexities of these AI-
generated algorithms. To put this in context, consider attempting to comprehend and foresee the
“what,” “when,” “where,” and “how” of human endeavour and attitude. Autonomous delivery vehicles
are propelled by highly complex systems, which include sensors that feed into an AI algorithm, which
allows for the tracking of local traffic as well as the prediction and accounting for the behavior of nearby
human drivers. In these cases, a single incorrect prediction by the AI algorithm could prove fatal for
human drivers. Of necessity, the myriad dangers posed by shoddy cybersecurity protocols must be
considered.
It's a Little Expensive
The costs of implementing and maintaining artificial intelligence are huge. For small businesses and
start-ups, the budget is also prohibitively costly. Even though artificial intelligence decreases
manufacturing labor costs, it still necessitates installation and maintenance costs. You really don't want
any cyberattacks on your infrastructure, so the cost of cyber threat security should be factored in.
Experts and skilled individuals are in short supply.

Since AI technology is a rapidly developing field, AI experts with the required expertise are generally
scarce. Since these tools necessitate complex programming on a regular basis, it's critical to factor in
expert availability. Furthermore, since such hands are in high demand, the cost of recruiting them would
be high.
Vulnerable to Bugs
Another disadvantage of artificial intelligence is that it is vulnerable to cyber-attacks. According to a

recent World Economic Forum survey, cyber-attacks are one of the top five global stability challenges.
For any manufacturer who uses AI software, this kind of knowledge can be very terrifying.
Cybercriminals are working hard to devise new hacking methods as AI becomes more effective and
widespread. A manufacturing company's operations may be disrupted or completely shut down by a
minor security breach.
Conclusion
AI comes with its own set of obstacles and risks, but that doesn't rule it out as a viable option. AI in the
supply chain, on the other hand, should be carefully considered within a comprehensive risk,
contingency, and mitigation matrix. And keep in mind that AI is a tool that should be used in tandem
with human skills and decision-making processes, not as a replacement for human labor.
Reference
Hamilton, F. (October 1st, 2020) Global Trade. AI is Transforming the Manufacturing Industry: Pros and
Cons https://www.globaltrademag.com/ai-is-transforming-the-manufacturing-industry-pros-
and-cons/

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Pros and Cons of AI

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Pros &Cons of AI within manufacturing and supply chain.

Prepared for Professor Roger Naimool

Supply Change Optimization

A More Effective Generative Design Process

Process Quality Improvements

It's a Little Expensive

Experts and skilled individuals are in short supply.

Another disadvantage of artificial intelligence is that it is vulnerable to cyber-attacks. According to a

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