AI is simulating the worst case scenario — for your own good

Hello readers,

Welcome to the AI For All newsletter! Today, we’ll be exploring how AI is imagining terrible supply chain disruptions (to overcome them), how AI is contributing to Industry 5.0, and more!

AI In Action:

Unpredictable trade policies and shifting global tariffs, on top of traditional acts of God, are making traditional methods of future planning and complex supply chain management more and more of a crap shoot. That’s why, as detailed in the Harvard Business Review, companies like a major aerospace manufacturer (AAS) and a liquified natural gas exporter (LNG) are turning to AI-powered dynamic stress testing to protect supply chains and maintain profitability. By combining classical scenario planning with AI-driven impact modeling, these firms can now simulate hundreds of potential outcomes in real time. The AI systems ingest supply chain maps, product data, and revenue associations, then prioritize vulnerabilities and suggest mitigation strategies based on shifting geopolitical conditions.

This approach has yielded highly practical results, according to HBR. AAS and LNG have used AI outputs to adjust sourcing strategies, identify at-risk suppliers, and pivot operations toward alternative countries, foreign trade zones, or tariff-exempt materials. They’ve also adopted more granular tracking of tier 2 and 3 suppliers, giving them deeper visibility into risk exposure. AI’s rapid processing allows teams to stress-test “what if” scenarios—like doubling tariffs or trade deal failures—and see revenue impact projections within hours instead of weeks.

While no system can predict every twist in global policy, dynamic stress testing offers a powerful way to reduce the guesswork. By combining AI with human expertise, companies can better understand where they’re vulnerable and what actions to take before disruption hits. Best of all? It turns catastrophizing into a productive exercise.

🔥 Rapid Fire

• Analysis: Generative AI is a money trap

• OpenAI introduces GPT-5 as a unified model

• Inside OpenAI’s rocky path to GPT-5

• What an actual software engineer thinks of AI coding tools

• Will Google’s AI Overviews kill news sites as we know them?

• School AI surveillance like Gaggle can lead to false alarms, arrests

• James Cameron imagines Terminator-style apocalypse if AI used in weapons

• Senior AI researchers desert Apple amid 'a crisis of confidence'

• Hackers hijacked Google’s Gemini AI with a poisoned calendar invite

• Elon Musk's AI creates deepfakes of Scarlett Johansson, Taylor Swift

• Axios thinks AI could displace ‘millions of workers’ in next recession

• Ex-Google business exec says on podcast that AI won’t create new jobs

• Electricity bills in Kansas and Missouri rising amid data center buildouts

• Anthropic CEO says massive salary changes can 'destroy' company culture

📖 What We’re Reading

AI and Industry 5.0: How GenAI + Human Expertise Creates the Next Manufacturing Frontier