AI Revolutionizes Supply Chains Amid Trade Turbulence

Amid U.S. trade tariff uncertainties, companies like The Toro Company are leveraging artificial intelligence to optimize supply chain efficiency. AI helps digest news affecting business and assists in ordering components, potentially boosting profit margins by keeping inventories low. Experts warn against overreliance on AI, noting its current limitations.

In the face of U.S. President Donald Trump's trade tariffs, manufacturers such as The Toro Company are capitalizing on artificial intelligence to navigate supply chain challenges. Despite disruptive global events, Toro's pre-pandemic inventory levels illustrate the potential benefits of AI.

Kevin Carpenter, Toro's chief supply-chain manager, highlights AI's critical role in processing daily news, which impacts their business decisions. As tariff fluctuations and export bans pose risks, AI supports lean inventory management by efficiently determining component purchases.

Industry experts remain cautious, acknowledging AI's burgeoning role in supply chain resilience but urging against viewing it as a cure-all. For now, AI aids with routine tasks, leaving strategic decisions in human hands as businesses pursue profit margin improvements through low inventory levels.

(With inputs from agencies.)