AI - The New Unlock in Supply Chain

Welcome to another edition of the Neural Net…

Where AI is optimizing everything—except your weekend plans (that’s still on you).

In this issue:

• AI Supply Chains: Faster, Smarter, No Drama

• Nvidia Isn’t Going Anywhere

• Amazon’s Alexa+ Just Crashed the Party

• Meta Feels Left Out, Will Release Its Own AI App

• Estonia Brings Chatbots To Students

• Bridgetown Research Provides AI-Powered Insights

AI - The New Unlock in Supply Chain

How AI is Reinventing Supply Chain

Not long ago, waiting 1–2 weeks for an online order was the norm. Now, two-day shipping is standard, next-day delivery is widespread, and same-day fulfillment is becoming more common. What once seemed impossible is now just a tap away.

Recent events, such as the October port strikes, the looming tariffs, and the lingering effects of COVID-era disruptions, have put a spotlight on supply chain operations. A company’s ability to survive and thrive often depends on how efficiently it can manage its supply chain.

While technology has always played a role in supply chain management, AI represents the next frontier. Traditional supply chain methods have been effective but often rely on brute force—throwing more people, time, and resources at the problem. AI, however, acts as a precision tool, refining and optimizing every step of the process.

Here are examples of companies successfully deploying AI to enhance their supply chain:

• Amazon uses AI for inventory management and order processing

• Ford Motors employs AI to predict part demand and prevent out of stocks

• Walmart uses generative AI assistants to help with customer service and ensure smooth order processing

• UPS uses AI to optimizes delivery routes, lowering fuel costs and ensuring on-time shipments

The Bottom Line

For consumers, an AI-driven supply chains means..

• faster shipping, with an ever-expanding range of available products

• not having to track your package like it’s a missing person

• streamlined returns and superior, on-demand customer service

For business, an AI-driven supply chain is able to…

• optimize delivery routes, reducing the cost to fulfill

• estimate demand during peak shopping seasons, ensuring the right products are in-stock and available

• streamline warehouse operations, reducing employee workload

For most consumers, supply chains are an afterthought; as long as we get our two-day shipping, we don’t think twice about how it happens. But for business, the supply chain is a critical component that ensures customer satisfaction (getting the right product to the right place at the right time) while keeping costs in check.

With AI at the helm of supply chain advancements, everyone stands to gain.

Heard in the Server Room 
Quick hits roundup of AI news

• Nvidia Posts Blowout Q4

  Despite recent competition and market challenges, Nvidia reported a 78% year-over-year revenue increase to $39.3 billion in Q4 2024, primarily due to strong demand for its Blackwell GPUs. Compute demand continues to grow as Nvidia CEO says “next-generation AI will need 100 times more compute than older models as a result of new reasoning approaches.” The stock still hasn’t fully recovered from its DeekSeek related January nosedive.

• Amazon Releases AI Enhanced Alexa+

  Amazon has introduced Alexa+, an AI-enhanced version of its voice assistant, now available for $19.99 per month, though Prime members get it gratis. This upgrade aims to make Alexa your digital BFF, capable of planning date nights, creating study schedules, and even booking rides shares. Alexa+ is Amazon's latest move to blend advanced AI with everyday convenience.

• Meta Plans Standalone AI App

  Feeling a bit left out, Meta is planning its own standalone app, set to launch later this year. The move takes its chatbot beyond Facebook, Instagram, and WhatsApp, putting it in direct competition with ChatGPT and Google’s Gemini. Plus, Meta is testing a paid subscription model, because apparently, free chatbots just don’t pay the bills. With $65 billion earmarked for AI this year, Zuck is going all-in.

Estonia Brings Chatbots to Classrooms - AI’s About to Get an A+

Some countries are opting for top-down enforcement of AI tools, but Estonia, who is already a leader in ChatGPT usage, is taking a different approach by introducing chatbots in schools.

The country is launching the AI Leap initiative, which aims to teach high school students AI skills through a collaboration with OpenAI and Anthropic. This program, starting in September, will give 20,000 students and 3,000 teachers access to AI-learning tools and educational versions of popular chatbots, preparing students for future jobs and boosting AI awareness.

Beyond educational benefits, the initiative also aims to ease teachers' workloads and foster local tech talent. Anthropic predicts that Estonia’s move will set a global precedent, but we’re left wondering on how will Estonia handle AI-generated exam answers? As highlighted in our University of Minnesota article earlier this week, the rules around AI cheating in education are still very much in the air.