This chapter examines the transformative impact of AI on supply chain management and the challenges encountered in real-world deployments. AI-driven tools and analytics are enabling more data-driven forecasting, dynamic inventory control, and responsive logistics, showing substantial promise in improving supply chain performance. The chapter highlights examples of how innovative startups and companies leverage AI to reduce inefficiencies and enhance decision-making across demand planning, warehousing, and transportation. At the same time, we discuss the significant hurdles organizations face in capturing AI’s benefits. These include the high costs of talent and technology, difficulties in integrating AI systems with legacy supply chain processes, and issues of data quality and siloed information. The chapter emphasizes that realizing AI’s full potential in supply chains requires overcoming these frictions through strategic investments in data infrastructure, workforce skills, and change management. Looking ahead, emerging trends such as generative AI and autonomous supply chain systems are considered in light of these opportunities and challenges. Ultimately, while AI offers unprecedented tools to transform supply chains, its true impact will depend on effectively managing the disruptions and organizational challenges that accompany its adoption.