Companies such as Maersk, Siemens, and Unilever, according to a Financial Times report published on Saturday (Aug. 12), are using generative artificial intelligence (AI) to source new supplies, finalize contacts, and ensure they are not doing business with companies linked to environmental and human rights abuses.
New supply chain regulation in countries such as Germany, which requires corporations to track environmental and human rights problems in their supply chains, has raised interest and investment in the subject, according to the report.
According to Navneet Kapoor, Maersk’s chief technology officer, “things have changed dramatically over the past year with the advent of generative AI,” which can build conversational responses to human cues.
According to the report, Maersk gave $20 million to Pactum, a San Francisco company that says its ChatGPT-like bot has negotiated contracts with suppliers for Maersk, Walmart, and distribution company Wesco.
“When there is war, COVID, or supply chain disruption, you need to reach out to suppliers,” said Pactum co-founder Kaspar Korjus to the Financial Times. “With one disruption after another these days, humans are taking far too long.” “Walmart does not have the time to contact tens of thousands of suppliers.”