Article

Agentic AI in the Supply Chain

The supply chain landscape is evolving rapidly to build the sustainable resilience needed to navigate global disruptions and improve operational efficiency. Using emerging technologies can help all members of the supply chain keep pace with the increasing rate of change.

Agentic AI stands out as a transformative force, capable of autonomously making decisions and optimizing complex processes with minimal human intervention. However, there are still challenges around accountability, transparency, and data privacy when companies work to integrate AI agents into their ecosystems.

This article explores the role of Agentic AI in the supply chain, highlighting its capabilities, use cases, and the critical importance of GS1 Standards in ensuring seamless operations and interoperability.

Overview

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What Is Agentic AI?

Agentic AI refers to artificial intelligence systems that are designed to autonomously make decisions and take action. This allows them to pursue complex goals with limited human supervision. Unlike traditional AI models that require human input, Agentic AI combines the flexibility of large language models (LLMs) with the precision of traditional programming. This hybrid approach enables AI agents to analyze data, set goals, and execute actions independently, thereby enhancing productivity across various domains.

Typically, AI agents are designed for a specific function, and they perform best when their specialized capabilities are coordinated with other AI agents to create a collaborative, automated ecosystem.

How Is Agentic AI Different From Generative AI?

While Generative AI excels at creating new content such as text, images, audio, video, and code, it relies on human input to define the context and goals of its output. Due to its focus on creation, generative AI is also prone to hallucinations, where it provides made-up answers or references to content that does not exist.

In contrast, Agentic AI is built to carry out complex, multi-step tasks on its own. These AI agents can assess their surroundings, make decisions, and proactively work toward predefined goals, such as maximizing sales, improving customer satisfaction, or optimizing supply chain processes. Generative AI is focused on the creation of new content, while Agentic AI is designed to execute specific tasks.


Agentic AI Use Cases

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Personalized Healthcare Assistant

In healthcare, Agentic AI is revolutionizing personalized treatment and diagnostics. Companies have developed AI agents that can assist with daily tasks and provide personalized medication reminders to patients. Others can better prepare patients for pre-operative procedures by reminding them to fast or stop taking certain medication before their operation.

AI agents can be directly integrated into patients’ mobile devices, enabling fast, simple communication across various levels of technical literacy. These personal healthcare agents can become even more helpful when synchronized with wearable devices, using real-time information to offer additional insights and recommendations to patients. By orchestrating prescription information, electronic health records (EHR), and wearable data, Agentic AI can provide holistic, personalized assistance to patients at scale.

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Automated Customer Service

Retail companies are using Agentic AI to enhance their customer experience through digital assistants. AI assistants can streamline repetitive, basic internal processes for customer service associates, freeing them up to spend their time on harder scenarios and edge cases.

AI agents can further improve customer experience by offering personalized fashion recommendations or beauty advice tailored to customers’ preferences. Their ability to act also means that AI agents can handle a wider variety of tasks than generative AI chatbots. In this scenario, agent interoperability is key, as AI customer service agents might need to liaise with those in finance to enable purchases or those in reverse logistics to handle returns.

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Manufacturing Workflow Automation

Agentic AI is being adopted in manufacturing facilities and warehouses to proactively suggest maintenance needs and detect workflow bottlenecks. When integrated with internal IT and enterprise resource planning (ERP) systems, these AI agents can monitor material inventory levels, generate purchase orders when supplies are low, and initiate short-term workflow adjustments to keep things running smoothly.

Digital twins of the warehouse environment can provide AI agents with real-time data—like product movement, robotic systems, and worker capacity—to further enhance their performance. Although human review of any purchases or maintenance requests is necessary to ensure quality, the AI agents’ ability to automatically create these suggestions produces significant efficiency gains.

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Supply Chain Optimization

Across supply chains, Agentic AI can streamline operations by autonomously predicting demand, managing inventory, and adjusting procurement strategies in response to volatile market conditions. These systems analyze historical data and real-time inputs to make smarter logistics decisions.

For example, logistics companies can seamlessly manage delivery routes and inventory levels. Due to their proactive nature, AI agents can also help manage supply chain disruptions. When an unexpected event occurs, such as geopolitical turmoil or climate disruptions, the AI can respond without having to wait for human instructions. It can recommend alternative routes or suppliers to keep operations moving. AI agents’ proactivity enables supply chain operations to be more agile and respond quickly to disruptions and changes that inevitably occur.

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Agentic AI and GS1 Standards

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Role of GS1 Standards

GS1 Standards can help enable the effective implementation of Agentic AI in supply chains. Standards provide a common language for identifying, capturing, and sharing information about products, locations, and entities. Like all AI, Agentic AI requires good-quality data to operate correctly, both for its initial training and for ongoing integration with digital systems. GS1 Standards support Agentic AI by ensuring data is accurate and can work across systems, helping AI agents communicate, coordinate, and function optimally.

As Agentic AI systems develop and are integrated into business workflows, a complex ecosystem of agents will emerge. AI agents from different companies, built for different niche purposes, will need to work seamlessly together to perform efficiently within their business environments. For example, within a supply chain, there could be an agent focused solely on procurement and another that manages warehouse inventory levels, while a third monitors meteorological data to proactively report disruptive weather events. All three of these agents will need to share data seamlessly to achieve real-time, proactive decision-making.

GS1 Standards offer a path to interoperability through a common language of identification for products, locations, and entities.

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Benefits of Standards

Integrating GS1 Standards with Agentic AI can offer numerous benefits, including:

Data Consistency

GS1 Standards can help ensure that product, location, and entity data is consistent throughout an organization and its trading partner ecosystem, enabling AI systems to make informed decisions. Consistent data makes it easier for both human associates and AI agents to communicate and coordinate along every step of a product’s journey, from manufacturing through transportation and distribution to point-of-sale.


System Interoperability

Standardized identifiers facilitate seamless communication between different systems and stakeholders, enhancing coordination and efficiency. Data sharing can be achieved through electronic data interchange (EDI), API calls, and other digital communication that requires standards to operate at scale. Agentic AI can use similar data pipelines to share data with other AI or human counterparts, making interoperability between systems essential.


Transparency & Traceability

Standardized data enables better visibility into supply chain operations, which allows for more-effective monitoring and management. With consistent data and interoperability, it becomes easier to trace data and products across the supply chain. This visibility offers greater insights for AI agents to optimize product flow. Transparency is necessary both to share data effectively and for humans to review and ensure accountability of the AI.

Agentic AI Limitations and Risks

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Accountability

While Agentic AI offers considerable benefits, organizations should carefully consider the implications of granting decision-making power to automation systems. Striking the right balance between autonomy and human oversight is crucial to prevent unintended consequences and ensure that AI-driven actions are accountable to the proper stakeholders in the organization.

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Transparency

The complex reasoning and decision-making processes of Agentic AI systems can often be opaque, making it difficult for users and stakeholders to understand how and why certain decisions are made. This lack of transparency can erode trust and raise concerns about the fairness, ethics, and reliability of AI-driven outcomes.

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Security & Data Privacy

Integrating Agentic AI with enterprise systems that contain sensitive data raises valid concerns about security and privacy. User personalization also requires AI to have access to potentially sensitive consumer data, especially in healthcare. As these systems become more interconnected and autonomous, there are increased risks of data breaches and cyber attacks. Ensuring robust security measures and maintaining data privacy are critical to mitigating these risks.

Conclusion

Agentic AI is poised to revolutionize industry operations and supply chain management by autonomously optimizing processes and enhancing efficiency. As more AI agents are created with specific functionalities, accurate, consistent data will be essential to build an ecosystem of AI agents that work together effectively. Using GS1 Standards helps ensure interoperability and seamless operations.

As businesses continue to adopt Agentic AI, it is crucial to address the associated limitations and risks and strike a balance between autonomy and oversight, transparency and trust, and security and privacy. By doing so, organizations can harness the full potential of Agentic AI to drive innovation and achieve sustainable growth in the supply chain.

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