Efficient management of the supply chain remains a significant issue in the ever changing realm of global commerce. This research presents a theoretical framework for examining the impact of incorporating artificial intelligence (AI) on the overall perform ance of supply chain management (SCM). The framework, considered as the independent variable, encompasses the element of AI optimization , which comprises of machine learning algorithm , predictive analytics, natural language processing , Decision Support Systems (DSS),Robotic Process Automation (RPA),and Artificial Neural Networks ( ANN). These artificial intelligence optimizations element have the ability to improve forecasting, optimise inventory control and logistics, increase operations, mitigate risks, an d capitalise on market trends. However, the approach acknowledges that successful AI optimizations necessitates organisational readiness and strategy congruence. Organisational culture are significant determinants for AI optimization in SCM . This paper aim s to provide a comprehensive understanding of the advantages and challenges related to the modernization of supply chains using artificial intelligence (AI), by examining various perspectives and scholarly sources. This paradigm facilitates firms in naviga ting the complexities of modern supply chains, hence creating opportunities for growth, creativity, and the generation of value.