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Manufacturers Turn to AI to Manage Supply Chains Amid Tariff Volatility

U.S. manufacturers like The Toro Company are using artificial intelligence to maintain lean “just-in-time” inventories despite ongoing global trade uncertainties and fluctuating tariffs. Toro’s supply chain chief, Kevin Carpenter, says AI helps the company process daily news—from policy updates to commodity prices—into actionable insights, guiding purchasing and inventory decisions.

Generative AI is being increasingly adopted in supply chains, capable of analyzing massive datasets and suggesting optimal actions. Industry research firm Gartner predicts AI software spending for supply chains could rise from $2.7 billion today to $55 billion by 2029. Leading providers include SAP, Oracle, Coupa, Microsoft, and Blue Yonder.

While AI improves efficiency and helps manage cost pressures, experts caution it is not a “silver bullet.” Human oversight remains essential for strategic decisions, with AI handling routine tasks like scheduling and ordering. Companies using AI can better react to uncertainty, reduce excess inventory, and protect profit margins amid rising costs and global disruptions.

RBI Committee Recommends AI Framework for India’s Financial Sector

A Reserve Bank of India (RBI) committee has proposed a comprehensive framework to develop AI capabilities in the country’s financial sector while managing associated risks. The recommendations, released Wednesday, aim to balance innovation with security and governance.

Key proposals include creating digital infrastructure for building indigenous AI models, establishing a multi-stakeholder committee to assess risks and opportunities, and setting up a fund to support homegrown AI solutions tailored to India’s financial services. The report contains 26 recommendations across six areas: infrastructure, capacity, policy, governance, protection, and assurance.

Other notable suggestions include integrating AI with digital public platforms such as the Unified Payments Interface (UPI) and designing audit frameworks for responsible AI adoption. The committee, led by IIT Bombay computer scientist Pushpak Bhattacharyya, was tasked with developing the Framework for Responsible and Ethical Enablement of AI (FREEAI). The RBI emphasized that regulating AI requires balancing societal benefits with risk mitigation.

Anthropic Offers Claude AI Chatbot to U.S. Government for $1

Anthropic, the AI startup backed by Amazon.com, announced it will offer its Claude AI model to the U.S. government for just $1. The move makes Claude one of several AI tools available to federal agencies at minimal cost, as startups compete for lucrative government contracts.

This announcement follows the inclusion of Claude, OpenAI’s ChatGPT, and Google’s Gemini on the government’s list of approved AI vendors. CEO Dario Amodei stated, “America’s AI leadership requires that our government institutions have access to the most capable, secure AI tools available.”

OpenAI made a similar offer last week, providing ChatGPT Enterprise to participating federal agencies for $1 per agency for the next year. Anthropic’s initiative highlights the growing competition among AI companies to provide secure and advanced technologies to the U.S. government.