Recent research by Fetch.ai, a company specializing in artificial intelligence (AI) for the blockchain, sheds light on the potential for autonomous supply chains (ASCs) and the impact they could have on the workforce. While the study paints a promising picture of increased efficiency, it also raises concerns about significant job losses in the manufacturing sector.
The research paper, titled “On implementing autonomous supply chains: A multi-agent system approach,” co-authored by Cambridge University researchers and Fetch.ai’s Director of Business Development, Maria Minaricova, examines vulnerabilities within supply chains exposed by recent global events like trade restrictions, the COVID-19 pandemic, and geopolitical conflicts. It proposes ASCs as a potential solution, using the complex meat supply chain as a case study.
The study explores an agent-based ASC system (A2SC) employing different “agents” to represent entities like wholesalers, suppliers, retailers, logistics providers, and third-party logistics (3PL) companies. These agents simulate scenarios within the supply chain network. The results, while positive in terms of automating functions and connecting decision-making points, reveal a crucial limitation: the inability to adapt to unforeseen disruptions effectively.
This limitation highlights a key challenge in developing truly autonomous supply chains. While AI offers automation and improved decision-making, its current iteration might struggle with real-world unpredictability.
However, the study doesn’t stand alone. Blockchain technology has already shown promise in streamlining supply chains, particularly with regards to food safety and traceability. Combining AI and blockchain, especially when coupled with Internet-of-Things (IoT) technologies, offers a potentially powerful cocktail for optimizing supply chains.
The flip side of this technological advancement is a potential workforce crisis. The International Monetary Fund (IMF) estimates that roughly 40% of global jobs are susceptible to automation. Experts warn that AI could disrupt a wider range of occupations compared to previous automation waves, including skilled cognitive jobs. Advanced economies could see a 30% job replacement rate in some sectors, while emerging and low-income countries face potential displacement of 20% and 18% respectively.
Gita Gopinath, Deputy Managing Director of the IMF, raises another concern: overreliance on AI predictions. Generative AI models, while powerful, could introduce forecasting errors, leading to crippling delays and shortages across the global economy. Recent supply chain disruptions caused by COVID-19 serve as a stark reminder of the potential economic and social consequences.
The research by Fetch.ai highlights the potential of autonomous supply chains, but also exposes the potential for job displacement. As we move forward, it’s crucial to consider not just the efficiency gains of AI but also the human cost. Policies must be developed to address the potential disruption to the workforce, ensuring a smooth transition into new job markets and opportunities created by this technological evolution.
