Lessons for AI from the manufacturing supply chain

Not long ago, The Wall Street Journal let “Claudius Sennet,” an AI agent, manage its vending machine under the watchful gaze of “Seymour Cash,” a bot. The model monitored inventory and sales and placed orders. It was an autonomous vending machine, a very simple business, certainly a lot simpler than managing a supply chain.

In a matter of days, the Journal reported that:

Claudius had given away nearly all its inventory for free — including a PlayStation 5 it had been talked into buying for ‘marketing purposes.’ It ordered a live fish. It offered to buy stun guns, pepper spray, cigarettes and underwear. Profits collapsed.

There are many such tales of AI failures. PwC reports that only 12% of CEOs have seen cost and revenue benefits.

Supply chains are a lot more chaotic than an isolated, deterministic vending machine — and managing them is an art and science that has...

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