Artificial Intelligence (AI) is positioned to revolutionize supply chains by enabling faster, smarter decisions such as enhanced operational efficiency, improved demand and inventory planning, and optimized logistics. This chapter explores this transformative potential arguing that while AI technologies are rapidly advancing, most supply chain organizations are not yet fully prepared to capitalize on these advancements. Key barriers include poor data quality, outdated technology, skills gaps, organizational resistance, and high costs. Overcoming these challenges requires leadership commitment, a clear, capability-oriented strategy, investment in modern infrastructure, process reengineering, and workforce upskilling in analytics and adaptability. Leaders must foster a culture of curiosity and innovation, ensuring continuous learning while the capabilities continue to evolve. While implementation costs and regulatory uncertainty remain challenges, the potential for improved and differentiated performance is consequential. Ultimately, supply chain leaders that embrace AI strategically and invest in readiness will thrive in an increasingly complex and dynamic business environment.