Abstract

Cybersecurity and data protection are critical challenges in modern supply chains, particularly as digital transformation continues to enhance interconnectivity across stakeholders. The proliferation of sensitive financial data in these supply chains including transactional records, pricing models, and financial forecasts—has increased their vulnerability to cyber threats such as data breaches, ransomware attacks, and insider threats. Artificial Intelligence (AI) emerges as a transformative solution, offering advanced tools to detect, mitigate, and prevent such risks. AI-driven cybersecurity solutions employ machine learning algorithms to analyze vast amounts of real-time data, identify anomalous patterns, and predict potential vulnerabilities before they can be exploited. These technologies can safeguard sensitive financial data by enabling automated threat detection, encryption protocols, and intelligent access controls. AI-powered systems are also instrumental in enhancing supply chain transparency, providing a comprehensive view of data flows to identify weak links and ensure compliance with regulatory standards. Additionally, AI enables the development of robust incident response mechanisms through real-time analytics and adaptive learning capabilities. By integrating blockchain technology with AI, supply chains can achieve heightened data integrity and traceability, reducing risks of unauthorized access or tampering. However, implementing AI in cybersecurity requires addressing challenges such as data privacy, algorithm bias, and the need for cross-industry collaboration. This review explores the role of AI in protecting sensitive financial data across supply chains, focusing on its capabilities in threat detection, response, and prevention. The analysis highlights the importance of integrating AI solutions with existing cybersecurity frameworks to create resilient supply chains capable of navigating an evolving digital landscape. With proper adoption, AI offers immense potential to enhance data protection, foster trust, and strengthen the financial integrity of global supply chains.