An analysis on the role of artificial intelligence in green supply chains

This paper investigates the retailer’s artificial intelligence (AI) adoption strategies in the green supply chain involving a manufacturer and a retailer. We demonstrate that the decision to introduce AI is influenced by the retailer’s estimation of the consumers’ green preference (CGP) without AI as well as the unit adoption cost of AI. Specifically, irrespective of whether the retailer underestimates or overestimates the CGP without AI, as the estimation bias increases, the retailer becomes more inclined to adopt AI; however, an increase in the unit adoption cost will discourage adoption. Furthermore, we find that if the retailer underestimates the CGP without AI, adopting AI may negatively impact the profits of both the manufacturer and the supply chain , as well as the greenness level, while simultaneously enhancing social welfare. Conversely, if the CGP is overestimated, adopting AI can improve the manufacturer’s profit and the supply chain’s profit but decrease the greenness level and potentially harm social welfare. We extend the model by considering the prediction accuracy of AI, demonstrating that as the prediction accuracy increases, the retailer who underestimates the CGP without AI becomes more inclined to adopt AI; however, this may not hold under certain conditions if the CGP is overestimated. • A green supply chain involving a manufacturer and a retailer was studied. • The values of AI in green supply chains were investigated. • The adoption of AI may not benefit all members of the supply chain and could negatively impact social welfare. • Adoption costs could outweigh the benefits generated by the adoption of AI. • Retailers may be less inclined to adopt AI under certain conditions as the prediction accuracy of AI improves.

Authors

Publication Details

Journal
Technological Forecasting and Social Change
Published
2025-05-06
DOI
https://doi.org/10.1016/j.techfore.2025.124169
Citations
13
Primary Topic
Impact of AI and Big Data on Business and Society
Type
article
Field-Weighted Citation Impact
27.39
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article

An analysis on the role of artificial intelligence in green supply chains

Lulu Yang, Xuesong Dong, Yimin Yang, Chaoqun Yi et al.
13 citations
Technological Forecasting and Social Change
Impact of AI and Big Data on Business and Society
27.39
article

An analysis on the role of artificial intelligence in green supply chains

Lulu Yang, Xuesong Dong, Yimin Yang, Chaoqun Yi, Hailing Li, Zilong Wang
article en
13 citations

Abstract

This paper investigates the retailer’s artificial intelligence (AI) adoption strategies in the green supply chain involving a manufacturer and a retailer. We demonstrate that the decision to introduce AI is influenced by the retailer’s estimation of the consumers’ green preference (CGP) without AI as well as the unit adoption cost of AI. Specifically, irrespective of whether the retailer underestimates or overestimates the CGP without AI, as the estimation bias increases, the retailer becomes more inclined to adopt AI; however, an increase in the unit adoption cost will discourage adoption. Furthermore, we find that if the retailer underestimates the CGP without AI, adopting AI may negatively impact the profits of both the manufacturer and the supply chain , as well as the greenness level, while simultaneously enhancing social welfare. Conversely, if the CGP is overestimated, adopting AI can improve the manufacturer’s profit and the supply chain’s profit but decrease the greenness level and potentially harm social welfare. We extend the model by considering the prediction accuracy of AI, demonstrating that as the prediction accuracy increases, the retailer who underestimates the CGP without AI becomes more inclined to adopt AI; however, this may not hold under certain conditions if the CGP is overestimated. • A green supply chain involving a manufacturer and a retailer was studied. • The values of AI in green supply chains were investigated. • The adoption of AI may not benefit all members of the supply chain and could negatively impact social welfare. • Adoption costs could outweigh the benefits generated by the adoption of AI. • Retailers may be less inclined to adopt AI under certain conditions as the prediction accuracy of AI improves.

Technological Forecasting and Social ChangeVol. 217
Openalex Percentile: Top 0%
Impact of AI and Big Data on Business and Society
27.39
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