AI-Driven Procurement in Ayurveda and Ayurvedic Medicines & Treatments

Abstract

The global Ayurvedic medicine and herbs industry is projected to reach approximately $23 billion by 2028 (Research, 2022). Ayurveda, a 5000-year-old system of traditional medicine, relies on natural ingredients sourced from diverse ecosystems. However, the Ayurvedic supply chain faces numerous challenges, including raw material authenticity, regulatory compliance, procurement inefficiencies, and counterfeit risks. This research explores the integration of Artificial Intelligence (AI) and blockchain technologies in modernizing Ayurvedic procurement. AI-driven demand forecasting models (LSTM, ARIMA, XGBoost) optimize inventory management, while machine learning-based supplier risk assessment (Gradient Boosting, NLP, Random Forest) enhances vendor selection and fraud detection. Blockchain smart contracts (Hyperledger Fabric, Ethereum) ensure end-to-end traceability, preventing counterfeiting and ensuring compliance with AYUSH, WHO-GMP, and FDA regulations. Additionally, IoT-enabled storage monitoring and hyperspectral AI-based quality authentication maintain herbal potency and safety. The proposed AI-powered procurement framework demonstrates significant improvements in procurement lead time, cost reduction, supply chain transparency, and quality control compared to traditional Ayurvedic sourcing methods. This paper highlights AI’s transformative role in optimizing Ayurvedic procurement, ensuring sustainability, efficiency, and authenticity in global herbal medicine markets.