Functional Implementation of Artificial Intelligence in Supply Chains: A Review of Economic and Environmental Optimization

Abstract

Abstract: Supply chain management is one of the most complex activities for companies. It faces several challenges, such as changing demand, disruptions, and environmental sustainability requirements. This complexity stems from the very nature of the supply chain, which encompasses a range of activities from raw material procurement and production to the distribution of finished products. The integration of advanced digital tools such as artificial intelligence is therefore imperative. AI contributes to supply chain optimization by improving the coordination of flows and decision-making. However, existing studies focus on economic and operational gains, while the environmental impacts remain largely unexplored. This article aims to analyze the main functional applications of AI across all supply chain activities and highlights AI’s contribution to the environmental optimization of the supply chain by improving the ecological footprint through optimized management of flows, resources, and various logistics processes. This research distinguishes itself from previous work by integrating the environmental dimension into the analysis of AI’s role in supply chain optimization. To achieve this objective, this study is based on a narrative literature review, which provides a critical synthesis of the existing literature and analyzes an aspect that has not yet been studied in depth: the impact of artificial intelligence on the environmental optimization of the supply chain. It is based on the analysis of 62 selected scientific articles published between 2020 and 2025 and sourced from high-quality scientific databases such as Scopus, Web of Science, and Science Direct, using keywords such as “supply chain,” “artificial intelligence,” and “optimization.” The results show that AI improves economic optimizations such as cost reduction and improved operational efficiency, as well as environmental benefits such as reduced CO2 emissions, energy consumption, and waste. This study makes a dual contribution, both theoretical and managerial, by analyzing the contributions of artificial intelligence to the supply chain and providing a concise overview for companies to understand the opportunities and challenges of its adoption.