Walk into almost any operations and supply chain meeting today and you’ll hear it:
“We should use AI for this.”
“Can we plug in an LLM?”
“Let’s add a copilot.”
Machine Learning Machine learning uses historical data to detect patterns, improve predictions and support decisions. In real-world operations, that includes:
- Demand forecasting
- Inventory optimization
- Predictive maintenance
- Quality and anomaly detection
LLM (Large Language Model) LLM refers to systems that can read and generate human-like text. It processes and generates language based on patterns learned from large datasets. It shows up:
- Summarizing supplier emails or RFQs
- Drafting customer responses
- Translating ERP data into plain language
LLMs don’t “know” a business unless connected to the firm’s data. Without that context, they can sound confident—but be wrong.
Copilots “Copilot” is one of the most overused—and misunderstood—terms. They are a layer that sits on top of a business system (ERP, CRM, email) to assist users in real time. It is useful for:
- Suggesting responses inside email
- Helping navigate ERP workflows
- Recommending next steps
A copilot doesn’t replace a system—it improves how people interact with it.
Agents Agents move from assisting to acting. They are systems that can take a goal and execute steps to achieve it.
Examples:
- Monitoring inventory
- Detecting shortages
- Reaching out to suppliers
- Proposing or initiating reorders
Most agent-based systems are still early. They require strong guardrails and tight integration to work reliably in production environments.
Embeddings (The Quiet Connectors) Embeddings convert a company’s data into a format AI systems can understand and search. That’s what allows AI to:
- Reference ERP data
- Search internal documents
- Provide context-aware responses
For operations students and faculty, the goal is not to become AI experts. It’s to understand the language well enough to ask better questions and identify where these tools can create real advantage.





Similar to the PC revolution decades ago, all signs point to AI following suit with enhanced productivity and profitability. Productivity soared when PCs became interconnected across organizations. Manufacturing will see the same breakthrough with “embedded AI”—to help ease workforce bottlenecks with specific solutions. On the shop floor, for example, predictive-maintenance AI (see Chapter 17) can analyze sensor data to forecast equipment failures and avoid labor-sapping downtime.
Telephone Switchboard Operator. Before direct-dial telephone systems took over, switchboard operators were the backbone of communication, ensuring calls reached the right destination. In the 1950s, the U.S. had about 1,342,000 telephone switchboard operators. It was a demanding job that required quick reflexes. By the 1970s, automated dialing systems phased out the need for human operators.
Milkman. Having fresh milk delivered to your doorstep was once a common part of American life. The local milkman made rounds, leaving glass bottles on doorsteps and retrieving empty ones. This service was necessary before the widespread adoption of home refrigeration. By 2005, this number had dwindled from over 50% of homes receiving delivery to just 0.4%.
Motion Picture Projectionist. Projectionists played a vital role in the moviegoing experience in the 1950s, operating and maintaining film projectors in theaters. By 2013, 92% of movie theaters had made the switch to digital projection. In 1950, 26,000 people were employed as projectionists. By 2023, that number had fallen to 2,610.
The shipping giant, which already deploys artificial intelligence in software development and other areas, is now looking to drive AI agents further into operations, including network planning and business processes. By 2028, FedEx expects to have AI integrated into more than half of its core operational workflows. FedEx is currently focused on setting up the underlying data and management foundation to oversee its AI bots.
The global map of robotics is specialized. There is a multi-polar supply chain that is difficult to disrupt:
Alongside Mac mini production, Apple is ramping up output of advanced AI servers at the Houston site, an initiative that began in 2025. The expansion reflects Apple’s growing investment in AI infrastructure, an area that has become central to both consumer devices and cloud services.
Fatality Rate: 98.9 per 100,000 workers. Primary Cause of Death: Contact with objects/equipment (falling trees). The Hazard: Falling trees and heavy machinery
