Flexibility has been perhaps the defining trait of our global response to the challenges of the last several years. Amid a global pandemic, geopolitical instability and supply chain disruption, government, organizations and workers have banded together to not only tackle these issues in the moment but prepare for potential future disruptions at the same time.
However, hidden underneath modern supply chains is a critical issue that key stakeholders are increasingly working to address slavery, which still occurs today. There are an estimated 50 million victims of slavery worldwide, with approximately 28 million trapped in forced labor. What might be more shocking is that the number of victims has increased by 10 million since 2016. The problem is getting worse, not better.
Faced with this issue, organizations have the opportunity to look to Artificial Intelligence (AI) for help — a decidedly new-age solution, albeit one that has been around in different forms for decades. Discussions of AI’s potential to improve supply chain efficiencies are already beginning to take hold, but it may be the case that AI could also be a powerful instrument in eradicating modern slavery, helping industry leaders pave the way for a more ethical, sustainable supply chain.
A Transformative Opportunity In Business — and Sustainability
Tackling modern slavery within today’s supply chains is no easy task, so the question arises: how can AI play a role in eliminating this complex problem? Concerns surrounding the use of AI have dominated the news cycle for the past year, but the reality is technology also has immense potential to be a force for good, provided the right guardrails are there.
The intricacy of supply chains generally requires the processing of vast amounts of data, a task that often exceeds human capabilities, but is in line with one of the primary benefits of AI — the ability to analyze immense inputs swiftly. According to a 2021 study by McKinsey, implementing AI in supply chain management resulted in a 15% reduction in logistics costs, a 35% enhancement in inventory levels and a 65% improvement in service levels. From these figures, we can see the massive business opportunity that awaits industry leaders who invest in AI to optimize their supply chain.
According to BSI’s recent Trust in AI Poll, nearly one-in-five (18%) respondents worldwide prioritized utilizing AI specifically to create more transparent supply chains and help eradicate modern slavery. The evidence shows business leaders have a chance to get behind a technology that can both make their supply chains more efficient and inspire employees by demonstrating a commitment to sustainable operations. The only question that remains is how to apply the technology.
Practical, Meaningful Applications for Supply Chain AI
It’s instructive to remember that modern slavery is a wide-ranging issue that manifests itself in multiple ways. One recurring theme involves labor trafficking from one country to another. According to Walk Free, an international human rights group focused on the eradication of modern slavery, in these cases, people find themselves surrendering their passport and potentially not being paid or able to leave the country. These scenarios are prevalent in many sectors, with manufacturing near the top of the list.
Rumors of rampant modern slavery in the manufacturing space perhaps explains why Congress recently expanded its investigation into the use of forced labor in the automotive manufacturing industry — specifically after a report linking modern slavery to the manufacturing of automobiles. Automotive manufacturing is just one area where, down the line, there is the potential for AI to have a positive impact in combatting modern slavery.
Looking to the future, AI models could, for example, analyze all the data available from sources across the web — whether that is new car manuals, news stories, shipping manifests, regulatory requirements, and so on — to provide an overview of a company’s supply chain, and where there may be tell-tale signs of modern slavery practices. Experts agree that an intelligent supply chain network is far more agile in detecting supply chain disruptions than humans alone. But detection is not enough to prevent modern slavery; that takes action, and that’s where people come into play. In this way, AI analysis can bring problems to light that might otherwise remain hidden, and humans can swiftly act on those findings.
A Partnership Between Humans and AI
While AI’s data analysis capabilities are tremendous, equally, there could be instances where it could “over-identify” forced labor, illustrating the importance of having human oversight. For example, American law enforcement officials have recently leveraged AI-powered facial recognition to identify leads in more than 300 sex trafficking cases, a powerful testament to the power of AI. But similar software has also led officials to issue six false arrests, which could jeopardize public trust in the system. It’s for this reason that facial recognition alone cannot be used as probable cause — only the starting point for law enforcement officials to begin an investigation. AI has the potential to be a powerful aid in providing investigators with leads on human trafficking activity, provided its algorithms are carefully monitored to minimize risk.
Faced with public examples like the above, it makes sense that 77% of respondents believe that trust, to some extent, is necessary when utilizing AI in supply chain management. Trust can be the foundation of our bright future with AI, but business leaders must earn that trust through effective communication about AI’s role in their supply chain efforts and diligent monitoring of its outcomes. By responsibly outlining where AI’s responsibility ends and humans should take the reins, organizations can both experience the benefits of using AI and gradually forge a mutually beneficial relationship between workers and the technology.
Our ongoing education about AI — where we learn more about its potential to be a force for good, helping us tackle complex tasks — is the heart of this transformative opportunity. As industry leaders take advantage of that opportunity, we will see just how resilient and sustainable our global supply chain can become for people and the planet.
Tony Pelli is director, security and resilience at BSI.
