Integrating AI and Sustainable Practices in the Supply Chain of the Garment Industry in Bangladesh

Bangladesh’s garment sector is a key part of the country’s economy as this industry adding over billions to GDP, employing millions, and accounting for 80% of the nation’s exports. But with inefficiencies in supply chain management (SCM), wastage of resources and environmental is sues plaguing the sector, it faces several hurdles in its sustainability journey. At the same time, emerging technologies, for example, Artificial Intelligence (AI) promise a transformational po tential for improving the efficiency of operations, as well as facilitating the adoption of sustain ability in SCM. However, there is scarce utilization of AI for sustainability in the RMG industry of Bangladesh. This paper identifies the obstacles and possibilities of AI and sustainability integration in the SCM in a Bangladeshi RMG sector. Based on qualitative interviews with industry experts and quanti tative survey data from 31 respondents at 30 companies, this thesis analyses the status of AI adoption in the context of sustainability, pinpoint main fields), e.g., energy efficiency (29%), waste reduction (25%), ethical sourcing (25%), circular economy considerations (25%) and ex plore barriers towards such adoption. The results indicate that AI adoption is in its infancy (with only 32.3% of the firms using AI in SCM), but that there is a strong belief in its sustainability potential. The study proposes a conceptual framework linking AI-based decision-making tools (e.g., pre dictive analytics, IoT monitoring) to sustainability dimensions (environmental, social, economic) and supply chain integration. Cost (33%), privacy issues (29%) and lack of skilled workforce (21%) are significant obstacles. To tackle these challenges, the thesis suggests a step-by-step introduction of AI, upskilling of the workforce, policy which incentivises and knowledge-sharing partnerships working collaboratively in industry. By coupling AI innovation with sustainable SCM, the study offers practical implications to indus try, policy, and global brands to future proof and leverage the operations of Bangladesh’s gar ment supply chain for resilience, efficiency, and ethics. The results reinforce AI’s crucial role in realizing the full potential of operational excellence and sustainable operation and enable the industry to be competitive in a global environment.