In a groundbreaking shift, half of the top supply chain companies are set to incorporate generative AI into their operations within the next year, according to recent research by Gartner. The survey, conducted in November 2023 with insights from 127 major supply chain companies, revealed that 14% are actively implementing or have already integrated generative AI. A mere 2% declared no plans to adopt this technology in the coming year.
Noha Tohamy, Distinguished Vice President of Gartner Supply Chain Practice, highlighted the significance of generative AI in supporting broader digital transformation objectives for Chief Supply Chain Officers (CSCOs). The majority of supply chain leaders recognize the value of GenAI in enhancing productivity, improving business agility, and reducing costs, as seen in their adoption plans.
The research also indicates robust funding for generative AI projects within leading supply chain organizations, with an average expenditure of 5.8% of their budgets dedicated to implementing the technology. Additionally, nearly two-thirds of respondents expressed openness to hiring dedicated staff to facilitate the deployment of generative AI applications. Potential applications include staff assistance chatbots, code augmentation, and summarized insights into Key Performance Indicators (KPIs).
This growing interest in generative AI aligns with recent announcements from major supply chain organizations such as Siemens, Unilever, and Pactum. Pactum, for instance, employs a generative AI chatbot to streamline negotiations for supply chain agreements on behalf of Fortune 500 companies, emphasizing the efficiency gains amidst disruptions in the industry.
The surge in generative AI adoption echoes industry trends, as highlighted by Flexport founder Ryan Petersen in a recent interview. Petersen emphasized how AI is automating various tasks in freight delivery, revolutionizing the traditional approach to container movement and providing a more streamlined and accurate solution.
As the International Centre for Trade Transparency and Monitoring observes these developments, it recognizes the transformative impact of generative AI on supply chain dynamics and the broader landscape of international trade.