How does Walmart use AI in its supply chain management, and what is a potential drawback of AI-powered data analytics mentioned in the chapter?

Walmart uses AI in its supply chain to predict regional product demand, keeping shelves stocked with the right inventory at the right time while reducing overstock and waste. A potential drawback of AI-powered data analytics noted in the chapter is that the underlying datasets must be clean and accurate; if the data is erroneous, the insights will also be incorrect.

According to the chapter, Walmart applies AI to supply chain management by forecasting demand for products in different regions. This helps the company ensure that each store has the correct inventory on hand when needed, while also minimizing problems like overstocking and waste. The chapter also cautions that AI-powered data analytics depends entirely on the quality of the data it uses. Accurate insights require clean and accurate datasets, so when the data is erroneous, the resulting insights will be incorrect as well.