How AI is spreading throughout the supply chain

DELIVERING 25 PACKAGES by lorry or van might seem straightforward enough, but it is devilishly complex. The number of possible routes adds up to around 15 septillion (trillion trillion), according to Goldman Sachs, an investment bank. Integrating AI into the complex web of production and distribution--the supply chain--will have a bigger economic impact than any other application of the technology and affect a larger number of businesses, says Sudhir Jha of Infosys, a large IT company. McKinsey estimates that firms will derive between $1.3trn and $2trn a year in economic value from using AI in supply chains and manufacturing (see chart). Many firms are already using robots powered by machine learning to improve the running of their factories and warehouses.