Digitalized and decarbonized: Navigating AI-enabled supply chains into the future with industry 5.0

In the era of Industry 5.0, the integration of artificial intelligence (AI) within supply chains is pivotal for achieving sustainability and efficiency. This chapter delves into how AI serves as a key driver in decarbonizing supply chains, crucial for the environmental goals of Industry 5.0, which emphasizes human-machine collaboration for enhanced customization and sustainability. By examining AI's role in supply chain management, such as improving logistic efficiency by optimizing routes, potentially reducing fuel consumption by up to 20%, and minimizing waste through predictive analytics, the narrative presents a compelling case for AI's transformative potential. Moreover, it highlights successful case studies where companies have significantly lowered their carbon footprint and energy usage, underscoring AI's capacity to facilitate a shift toward renewable energy sources. Despite challenges like high implementation costs and the need for skilled personnel, the opportunities AI presents for advancing circular economies and bolstering supply chain resilience are profound. Furthermore, through a qualitative exploratory study via thematic analysis using peer-reviewed journal articles and industry reports, the chapter also navigates through applications, opportunities, and weaknesses in conjunction with ethical and policy considerations, stressing the importance of responsible AI deployment. Conclusively, it advocates for ongoing research, policy dialog, and investment in AI technologies to fully leverage their capabilities in ushering supply chains into a more sustainable, decarbonized future, thereby aligning with the visionary goals of Industry 5.0.