THE ROLE OF ARTIFICIAL INTELLIGENCE IN IMPROVING SUPPLY CHAIN PERFORMANCE AND EFFICIENCY: AN ANALYTICAL STUDY OF PALESTINIAN COMPANIES

Raneen Abedalnaser Tahhan; Sumaiyah Binti Abd Aziz; Jamal Abdul Nassir Bin Shaari

doi:10.33102/cr8ec436

Authors

Raneen Abedalnaser Tahhan Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Negeri Sembilan, Malaysia Author
Sumaiyah Binti Abd Aziz Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Negeri Sembilan, Malaysia Author
Jamal Abdul Nassir Bin Shaari Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Negeri Sembilan, Malaysia Author

DOI:

https://doi.org/10.33102/cr8ec436

Keywords:

Artificial intelligence, supply chain management, supply chain performance, digital transformation, predictive analytics

Abstract

The rapid development of digital transformation technologies has accelerated the adoption of artificial intelligence (AI) as a strategic tool for improving supply chain management and enhancing performance and efficiency. This study aims to analyze the role of AI in improving supply chain performance and efficiency through an analytical review of scientific research published between 2020 and 2026. The review focuses on AI applications in key supply chain areas, including demand forecasting, inventory management, production planning, logistics, risk management, and sustainability. The study adopts an analytical approach based on content analysis of peer-reviewed research published in leading international academic databases. The reviewed literature suggests that AI applications have the potential to enhance demand forecasting accuracy, reduce operational costs, improve inventory management, strengthen supply chain resilience, and support more effective decision-making. The review also highlights several challenges that may hinder the widespread adoption of AI technologies, including high implementation costs, data quality issues, cybersecurity concerns, shortage of qualified personnel, and organizational resistance to change. In the Palestinian context, AI may represent a valuable opportunity to enhance organizational efficiency and improve business competitiveness. However, realizing the potential benefits of AI requires developing digital infrastructure, investing in human capital, and fostering a culture of digital transformation. The study highlights that artificial intelligence represents an important strategic enabler for developing smarter, more resilient, and more sustainable supply chains, particularly in emerging and resource-constrained economies

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