The Role of Artificial Intelligence in Optimizing Supply and Demand Management in Modern Businesses: A Review Article

Abstract

The Role of Artificial Intelligence in Optimizing Supply and Demand Management in Modern Businesses: A Review Article Faezeh Mokarrami1 1- [email protected]. Student in Entrepreneurship, Small Business Concentration, Islamic Azad University, Electronic Branch Abstract This narrative review examines how artificial intelligence has transformed supply and demand management in contemporary supply chains, particularly within emerging enterprises and environments characterized by volatility and uncertainty. By integrating conceptual, historical, and applied literature, the article demonstrates how artificial intelligence enhances core supply chain functions—such as demand forecasting, inventory control, logistics planning, supplier selection, and risk management—through data-driven decision-making, intelligent automation, and predictive analytics. Furthermore, the strategic role of artificial intelligence in strengthening supply chain resilience, agility, flexibility, transparency, and sustainability is highlighted, especially when combined with machine learning, deep learning, big data, blockchain, and the Internet of Things. A central axis of this review is the transition from reactive, historical data-based forecasting toward demand sensing and proactive, real-time decision-making. Simultaneously, the article emphasizes that the adoption of artificial intelligence depends not only on technical capabilities but also on organizational readiness, institutional context, data governance, and ethical considerations such as fairness, transparency, and environmental impacts. Ultimately, this review concludes that artificial intelligence has evolved from a marginal tool to a structural driver of competitiveness and recovery capacity in supply chains, although significant gaps remain regarding human-AI collaboration, longitudinal evidence, and context-appropriate adoption.