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AI-Driven Supply Chain Transformation in Industry 5.0: Enhancing Resilience and Sustainability

Author

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  • Haoyang Wu

    (Jilin University of Finance and Economics)

  • Jing Liu

    (Jilin University of Finance and Economics)

  • Biming Liang

    (Jilin University of Finance and Economics)

Abstract

The emergence of Industry 5.0 has ushered in a new era of industrial transformation characterized by the integration of physical and digital systems. In this dynamic environment, the role of artificial intelligence (AI) in supply chain management has become paramount. This research paper explores the impact of AI-driven imperatives on supply chain resilience and sustainability in Industry 5.0. Using a combination of probability analysis (PA), Bayesian-BWM (B-BWM), and Pareto analysis, we identify key AI-driven strategies for enhancing supply chain operations in the ready-made garment (RMG) and footwear sectors in China. The study highlights the importance of continuous monitoring of supply chain operations via the Internet of Things (IoT), adopting a circular production and packaging (CPP) model, and establishing a digital supply chain replica. These strategies improve resilience and contribute to environmental and societal outcomes. Automation and robust cybersecurity for data handling are crucial in the context of Industry 5.0, as they enhance production adaptability and data security. Also, streamlining inventory via RFID technology and harnessing AI to improve workforce safety and operational flow are essential measures. Comprehensive data analysis and forward-looking predictions through AI-driven big data analytics provide insights into consumer demand and energy consumption, ensuring efficient supply chain management. Lastly, while promising, blockchain integration poses challenges in terms of investment and regulatory compliance. However, it is important to consider the ethical implications and regulatory frameworks associated with AI deployment, as well as the need for education and training to bridge the digital gap. Collaboration between governments, industries, and educational institutions is essential to establish a comprehensive Industry 15.0 that benefits all segments of society. This research sheds light on the transformative potential of AI-driven supply chain management in Industry 5.0 and underscores the importance of addressing challenges to maximize its benefits.

Suggested Citation

  • Haoyang Wu & Jing Liu & Biming Liang, 2025. "AI-Driven Supply Chain Transformation in Industry 5.0: Enhancing Resilience and Sustainability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 3826-3868, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-01999-6
    DOI: 10.1007/s13132-024-01999-6
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