This study investigates the transformative influence of Artificial Intelligence (AI) on supply chain management. Employing a systematic literature review, we analyze articles from leading journals to map out the current applications of AI in supply chains, identify benefits and challenges, and forecast future trends. Our study reveals that AI significantly improves logistics and supply chain operations through predictive analytics, automation, and enhanced decision-making processes. Despite these advancements, we identify substantial challenges such as data privacy, integration complexities, and the requirement for skilled personnel. The paper contributes to academic literature by providing a structured overview of AI's applications and implications within supply chains. Practically, it offers insights for businesses on leveraging AI technologies to achieve competitive advantage and adapt to dynamic market demands. Moreover, we propose strategies to mitigate the identified challenges, facilitating smoother AI adoption. This research offers a holistic view of AI's impact on supply chains. It highlights the necessity for a balanced approach to AI implementation, taking into account ethical considerations and the potential for human-AI collaboration to optimize supply chain outcomes.