German automotive manufacturer Audi is using AI in an effort to create a more sustainable supply chain.
The Volkswagen Group company has used the technology as a proactive tool to supplement its traditional supply chain monitoring processes and complaint channels – e.g. post office boxes and ombudsmen – since October 2020.
In a pilot project organised by Audi, Porsche, and Volkswagen in about 150 countries, intelligent algorithms from Austrian start-up Prewave analyze report on suppliers from public media available online and social networks.
The analysis encompasses suspected sustainability risks such as environmental pollution, human rights violations, and corruption. When they are found, the AI sounds an alarm and Audi can respond to it.
According to Marco Philippi, head of procurement strategy at Audi, the main advantage of the AI is the speed at which it recognises relevant information online and transmits it in packaged form.
“We can recognise where potential risks turn up much earlier and actively counteract them, for instance through targeted strategic dialog with supplier companies,” said Philippi.
