Artificial intelligence (AI) has great potential to revolutionize supply chain operations by enhancing demand forecasting, optimizing inventory management and streamlining logistics, to create more resilient and agile operations. However, to gain a competitive advantage, many companies are implementing AI before ensuring their supply chain systems are secure.
Without the proper data safeguards in place, AI-enabled systems can lead to significant vulnerabilities, including data breaches, biased decision-making and increased cost. These vulnerabilities can disrupt critical operations, damage reputations, and erode customer trust, causing long-term harm to the business. According to Gartner (hyperlink first link in link section), “Attacks on the software supply chain, including both proprietary and commercial code, pose significant security, regulatory and operational risks to organizations. A source estimates costs from these attacks will rise from $46 billion in 2023 to $138 billion by 2031.”
ISBN Chief Product Security Officer at SAP.
Organizations that are not already doing so should consider using cybersecurity as criteria for third-party transactions. This is especially important as items like order details, payment information and other confidential details move throughout a global supply chain – reaching third party suppliers and logistics partners.
To protect data integrity and maintain customer trust, organizations should approach AI with a security-first mindset. These three tactics can help.
1. Conduct a risk assessment to understand data security
A risk assessment will identify the systems and intellectual property that are most valuable to your company. Additionally, the risk assessment will identify what data is critical to your organization and where it’s located. Once defined, cybersecurity risks can be prioritized based on the likelihood of occurrence and the impact on your business. Then, your list of prioritized risks can be used to establish effective response protocols.
By understanding how cyber-attacks can impact your business, you will be able to recommend time-sensitive actions to be used in a multi-layer defense protocol. Think of it like breaking into Fort Knox: if a malicious actor breaks through the first line of security and no other safeguards are in place, they have free reign to cause unmitigated damage. However, with a multi-layer defense response in place, you can reduce the harm.
While considering data, it is important to understand how data flows, and where it is located. For example, items listed on Amazon’s marketplace could be sold and shipped by third parties. When this happens, important customer data is routed to the seller/supplier, who may have less secure data security, which could increase the threat of a breach or other attacks.
Cyber-attacks are constant and unpredictable. As a result, constant monitoring and testing is necessary. When vulnerabilities are detected, automation can trigger predefined responses – such as isolating infected systems, notifying personnel and initiating remediation processes to ensure that future attacks are prevented.
Scanning tools can monitor transactions, communications, and activities in the supply chain to identify suspicious behavior faster. By scanning software, hardware and network infrastructure, companies can identify weaknesses, like unpatched systems that could be exploited. These efforts help build a more resilient and adaptive defense against malicious actors. Through proactively identifying and patching weaknesses before they are breached, many intrusions can be reduced or eliminated.
In addition to scanning, you can use penetration testing to locate vulnerabilities and red teaming to simulate offensive attacks, to see how your systems would respond to potential cyber-attacks. Together, these tests will uncover hidden weaknesses and assess the effectiveness of your current security.
To protect your company, your employees, and your customers, it is critical for companies to make security a cultural pillar. Companies should provide training to ensure that employees are aware of its importance and are actively engaged in maintaining high security standards.
In a supply chain where sensitive information travels between numerous parties, every employee and vendor should be considered as being a part of the security process. Efforts to foster a security-first environment include training on security threats, simulated phishing attempts with incentives for employees who demonstrate best practices, or the development of a security policy that includes IT, legal and procurement team members at every stage of the supply chain.
By promoting a security-first culture, you increase overall awareness and vigilance, making every individual a part of the security solution. A top-down commitment ensures that the right resources are allocated to cybersecurity, reducing the likelihood of lapses that can compromise the supply chain.
Putting it all together
With assessments that highlight areas of vulnerability, automated testing and monitoring, and championing a security-first culture, companies can cover nearly every phase of their operations and stay ahead of constantly evolving threats long into the future.
AI paves the way for new opportunities and technological advancements, revolutionizing industries and enhancing everyday life. By prioritizing robust security measures, your company can protect sensitive data and maintain customer trust, ensuring that both your business and customers reap the full benefits of AI safely and responsibly.
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