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Role of AI in Enhancing Supply Chain Transparency and Customer Trust

Authors:

Mr. Anurag Singh
Student
Dr. Gazala Yasmin Ashraf
Professor & HOD UG Management
Amity Business School, Amity University, Raipur, Chhattisgarh

Abstract: The integration of Artificial Intelligence (AI) in supply chain management is redefining how businesses operate, offering unprecedented transparency and fostering greater customer trust. This paper investigates the transformative role of AI technologies—such as machine learning, blockchain integration, and predictive analytics—in establishing transparent supply chains. Drawing on primary data from surveys and interviews alongside a comprehensive literature review, the study highlights AI’s contributions to real-time tracking, risk prediction, and data-driven decision-making, while also acknowledging the challenges posed by data privacy and ethical AI use. Statistical analysis, including Pearson correlation tests, confirms a strong positive relationship between perceived transparency and customer trust, underscoring AI’s value in building resilient and credible supply networks. Additionally, the paper examines emerging literature on AI-powered sustainability tracking and predictive demand forecasting, offering fresh insights into how these advancements drive trust and loyalty. The paper concludes with managerial implications, ethical considerations, and future research directions, ultimately equipping supply chain managers with actionable strategies for leveraging AI in an increasingly data-driven marketplace.