The impact of Artificial Intelligence technologies on international supply chains in international business

Abstract

Artificial intelligence (AI) technologies have emerged as a dominant force that is revolutionizing international supply chains within the broader context of international business. This paper represents a comprehensive examination of the ways in which AI reshapes global supply chain operations, with a particular focus on its impact on the competitive dynamics faced by multinational companies, operational efficiency, supply chain resilience, and risk management. The analysis, which incorporates data from MarketsandMarkets, Grand View Research, Gartner, and McKinsey reports, as well as empirical studies from ResearchGate and leading academic journals, demonstrates the explosive growth of the AI-driven supply chain solutions market. The market is projected to reach a value of over USD 50-236 billion by 2030-2035, with compound annual growth rates ranging from 20% to 42.7%. The most significant applications of machine learning are demand forecasting that has been improved by 10–65% in terms of accuracy, predictive maintenance, route optimization, inventory management, and real-time risk monitoring. The tangible benefits of international operations are demonstrated by practical case studies of leading companies, including Amazon, Walmart, Maersk, DHL and UPS. The study emphasizes the role of AI in promoting sustainable practices, supporting supplier diversification amid geopolitical tensions, and enhancing visibility across multi-tier global value chains. Nevertheless, obstacles continue to exist, such as regulatory divergences (e.g., EU AI Act), cybersecurity risks in cross-border data flows, skills deficits, and ethical concerns. In general, the research affirms that AI is fundamentally altering the architecture of international supply chains, necessitating adaptive strategies while providing multinational corporations with competitive advantages. The paper could be beneficial to international organizations as well as policymakers, entrepreneurs, and researchers. Additional research is advised regarding the integration of generative AI, the ethical frameworks for global deployment, and the influence of regulation on the adoption of AI in emerging markets.