This research examines the use of Artificial Intelligence (AI) for demand prediction and supply chain management in Indonesian e-commerce firms. E-commerce businesses face significant challenges in predicting consumer demand fluctuations and maintaining supply chain efficiency. Using a mixed-method approach, data were collected from eight e-commerce companies to evaluate the impact of AI on demand forecasting accuracy, supply chain efficiency, and operational cost reduction. The findings show that AI improves demand forecasting accuracy by 30%, accelerates delivery times by 40%, and reduces operational costs by 20%. However, data quality remains a key challenge in maximizing AI performance. This research contributes to the literature on supply chain management and AI, offering practical insights for companies aiming to enhance their operational efficiency through AI adoption. Recommendations include improving data quality, employee training, and gradual AI implementation to achieve optimal outcomes.
