Five Ways AI May Transform The Future Of Supply Chains

Artificial intelligence (AI) is reshaping industries across the globe, and the supply chain sector is no exception. Historically slow to adopt new technologies, procurement processes are now beginning to experience significant changes driven by AI innovations. After discussions with Vazghen Nikolian, a recognized expert in procurement and co-founder of Wimble AI, a procurement technology company based in San Francisco, as well as an advisory board member at ISCEA (International Supply Chain Education Alliance), here are five key predictions about how AI might transform the future of supply chains.

1. Price Transparency

AI-driven tools could dramatically increase transparency in pricing across the supply chain. Today, fragmented communications often prevent clear price comparisons between suppliers. According to Vazghen Nikolian, startups working on AI-powered buying agents are already seeing increased transparency between buyers and suppliers. AI agents can also discover suppliers that would normally remain unnoticed, allowing them to participate in bidding processes. This shift is giving procurement teams a clearer view of market pricing and terms, which could shape how decisions are made in the near future.

2. Pressure On Distributors

One likely outcome of AI integration is a decline in the dominance of high-margin distributors. These intermediaries have historically benefited from strong sales teams and close customer relationships. But as AI-powered systems evaluate suppliers primarily on pricing, delivery, and reliability, the traditional advantages of high-touch sales may matter less. Buyers interacting through AI agents are more likely to favor suppliers offering better value, even if those suppliers lack strong branding or sales infrastructure.

3. Shift In Marketing Influence

As procurement increasingly relies on AI-driven platforms, traditional marketing strategies like relationship building and promotional content might become less effective. According to Vazghen Nikolian, “An AI procurement agent doesn't care how many times it sees an advertisement, how catchy a slogan is, or how appealing a website's design might be.” Nikolian believes manufacturers and suppliers will increasingly need to rely on transparent, data-driven approaches to capture the attention of AI-powered procurement systems.

4. Rise Of Direct Sales

Manufacturers have historically relied on distributors partly as a way to outsource sales efforts. Instead of managing relationships with thousands of individual customers, manufacturers could focus on fewer distributors, significantly simplifying their sales operations. However, with the rise of AI-driven sales and purchasing agents, this advantage diminishes. While distributors will still have roles to play, manufacturers are likely to adopt more direct-to-consumer approaches as the necessity of outsourced sales decreases.

5. Evolving Procurement Software

Classic procurement software, currently designed primarily for human users, will likely need substantial updates to remain relevant. AI-driven procurement reduces the need for manual tasks such as price comparisons and approval management. Vazghen Nikolian indicates that procurement software companies must shift their products toward greater AI integration, real-time analytics, and automation capabilities.

Final Thoughts

While these predictions highlight AI’s potential to significantly disrupt traditional supply chain operations, uncertainties remain. Factors such as data security, cost of implementation, and resistance to change could moderate the pace of adoption. Ultimately, how deeply and quickly AI transforms procurement processes will depend heavily on how effectively the industry navigates these challenges.

BDG Media newsroom and editorial staff were not involved in the creation of this content.