In a groundbreaking shift, half of the leaders in the supply chain industry are gearing up to embrace Generative Artificial Intelligence (GenAI) within the next year, with an additional 14% already in the implementation phase, as indicated by a recent survey conducted by Gartner.
The survey, part of Gartner’s Supply Chain Practice report published on January 10, revealed that a mere 2% of respondents expressed no intentions to incorporate GenAI into their operations over the upcoming 12 months. What’s striking is not just the intent but the financial commitment, with supply chain leaders committing an average of 5.8% of their budgets to GenAI technology. Furthermore, 65% of respondents conveyed plans to enlist experts and staff dedicated to deploying GenAI within their organizational frameworks.
Noha Tohamy, Vice President Analyst in Gartner’s Supply Chain Practice, noted, “CSCOs see GenAI as supportive of their broader digital transformation objectives. Many supply chain leaders were already leveraging supply chain technologies and advanced analytics, and it’s clear from this data that the majority also see the value in GenAI to enhance productivity, improve business agility and reduce costs.”
Tohamy also acknowledged the imminent challenges faced by these organizations in scaling pilot projects to broader adoption, emphasizing that Chief Supply Chain Officers (CSCOs) need to consider the evolving roles of their staff in the face of increased automation, with a focus on elevating tasks to higher value-add activities.
The Gartner survey, conducted in November 2023 and involving 127 supply chain leaders, reflects a resounding industry shift towards GenAI integration in 2024. As organizations recognize the potential of GenAI in amplifying productivity, enhancing agility, and curtailing costs, the next year is poised to witness a transformative wave in supply chain operations.