AI-Enhanced Supply Chain Risk Management in E-Commerce: Proactive Solutions for Fraud and Disruption Scenarios

Abstract

The  growth of e-commerce has transformed global supply chains, enabling seamless transactions across borders. However, the increasing complexity of these supply chains introduces vulnerabilities to fraud and operational disruptions. Traditional risk management strategies often rely on reactive measures, which are insufficient in addressing the evolving landscape of threats. Artificial Intelligence (AI) offers a transformative approach, enhancing supply chain risk management through proactive solutions that predict, detect, and mitigate risks in real-time. This paper explores the application of AI technologies in managing fraud and disruption scenarios in e-commerce supply chains. By leveraging machine learning algorithms, natural language processing (NLP), and predictive analytics, AI can identify anomalies, anticipate disruptions, and recommend actionable strategies to maintain continuity and consumer trust. Fraud detection, for instance, benefits from AI’s ability to analyze transactional patterns, flagging deviations indicative of fraudulent activities. Similarly, AI-powered predictive analytics facilitate early identification of potential disruptions, such as supplier failures or geopolitical risks, enabling businesses to implement contingency plans preemptively. The integration of AI into supply chain risk management also introduces challenges, including data privacy concerns, the need for substantial computational resources, and the risk of over-reliance on automated systems. Addressing these challenges requires a strategic approach that combines AI with human expertise, fostering a symbiotic relationship where technology augments human decision-making. This study outlines the foundational AI technologies enabling proactive risk management, presents real-world applications in e-commerce, and discusses the implications for future research and practice. By adopting AI-enhanced strategies, e-commerce stakeholders can build resilient supply chains, minimize losses, and enhance operational efficiency. As digital marketplaces continue to grow, AI-driven solutions are not merely an advantage but a necessity to safeguard the integrity of global supply chains against evolving risks.