This review paper explores the pivotal role of AI-driven predictive analytics in optimizing supply chain operations within the IT industry. By leveraging machine learning, deep learning, and neural networks, predictive analytics can significantly enhance demand forecasting, inventory management, supplier selection, and risk management. Despite its potential, the integration of AI faces challenges such as data quality, the need for skilled personnel, and organizational resistance. The paper discusses strategic implementation approaches, emphasizing robust data infrastructure, stakeholder engagement, and continuous innovation. It highlights the economic and social implications of AI in supply chains and suggests directions for future research. The paper provides a comprehensive guide for practitioners and academics navigating the complexities of AI-driven predictive analytics in supply chain optimization, offering insights into how AI can enhance operational efficiency, reduce costs, and improve customer satisfaction.This review paper explores the pivotal role of AI-driven predictive analytics in optimizing supply chain operations within the IT industry. By leveraging machine learning, deep learning, and neural networks, predictive analytics can significantly enhance demand forecasting, inventory management, supplier selection, and risk management. Despite its potential, the integration of AI faces challenges such as data quality, the need for skilled personnel, and organizational resistance. The paper discusses strategic implementation approaches, emphasizing robust data infrastructure, stakeholder engagement, and continuous innovation. It highlights the economic and social implications of AI in supply chains and suggests directions for future research. The paper provides a comprehensive guide for practitioners and academics navigating the complexities of AI-driven predictive analytics in supply chain optimization, offering insights into how AI can enhance operational efficiency, reduce costs, and improve customer satisfaction.