China bets on AI for smarter, more resilient supply chains

Beijing – China is placing a significant bet on artificial intelligence to build more robust and adaptable supply chains, moving beyond its traditional advantage of low-cost production. This strategic shift was prominently featured at the fourth China International Supply Chain Expo held in Beijing.

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For AI to become more deeply integrated into our work and daily lives, it needs to move beyond the screen and into the physical world.

The expo introduced a dedicated AI zone for the first time, showcasing technologies aimed at improving various aspects of manufacturing and logistics. Chinese AI firm iFlytek presented AI-powered robotics designed for logistics and manufacturing, emphasizing the need for AI to integrate into the physical world. Dong Bin, iFlytek's deputy general manager for brand marketing, explained that their embodied AI technology addresses the challenge of limited training data by combining data collection, training, and inference in a single system.

Experts highlight that AI is becoming integral across the entire supply chain, from research and development to distribution. Hao Jianbin, a research fellow at Shanghai University of Finance and Economics’ Digital Frontiers Research Institute, noted that AI makes supply chains "smarter." Instead of being rigid, they can better anticipate changes and become more flexible. This increased flexibility is crucial for businesses navigating geopolitical tensions and evolving global trade dynamics.

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From research and development to manufacturing, distribution and downstream applications, everything is becoming connected.

Robotic arms capable of identifying and sorting products at high speeds were also on display, demonstrating the potential for AI to boost factory productivity while reducing reliance on manual labor. The growing focus on AI reflects a broader industry effort to create supply chains that are not only efficient but also resilient in the face of global uncertainties.

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(AI) makes supply chains smarter. Instead of being fixed and rigid, supply chains can better anticipate change and become much more flexible.