Artificial intelligence (AI) transforms supply chain management (SCM) by increasing process efficiency, improving decision-making, and reducing operational costs. Key applications of AI in SCM include demand forecasting, in which machine learning models predict future demand with greater accuracy, and inventory management, in which AI optimizes inventory levels to prevent shortages or overstocks. In logistics, AI improves delivery routes, reduces costs, and simplifies warehouse operations. AI also improves customer service through real-time tracking and chatbots. Despite these benefits, issues such as data security concerns, difficulty integrating with existing systems, and workforce adaptation are barriers to the widespread adoption of AI. Companies must secure data, invest in new infrastructure, and upskill employees for artificial intelligence systems. AI will continue to drive innovation in SCM with advances in predictive and prescriptive analytics, autonomous supply chains, and sustainable practices. These trends will help create more agile and resilient supply chains that can quickly respond to market changes and disruptions.