Half of Supply Chain Organizations to Implement GenAI in the Next Year, Says Gartner
In a recent survey conducted by Gartner, Inc., it has been uncovered that an impressive 50% of supply chain organizations are gearing up to implement Generative Artificial Intelligence (GenAI) within the next 12 months. Furthermore, an additional 14% have already initiated the implementation process, showcasing a significant shift towards the integration of advanced technologies in the supply chain sector. This insight comes as part of a broader trend where Chief Supply Chain Officers (CSCOs) are allocating an average of 5.8% of their budgets to GenAI technology in 2024.
The findings from the survey, which involved 127 supply chain leaders polled in November 2023, underscore the strategic importance CSCOs are placing on GenAI in alignment with their overarching digital transformation objectives. According to Noha Tohamy, Distinguished VP Analyst in Gartner’s Supply Chain Practice, the majority of supply chain leaders recognize GenAI's potential to enhance productivity, bolster business agility, and reduce costs.
Tohamy commented, "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. The challenge for many of these organizations over the next 12 months will be in scaling their pilot projects to broader adoption."
However, the survey also points out that the supply chain sector trails behind other enterprise functions such as marketing and sales in GenAI adoption. Tohamy suggests that this lag could present an opportunity for supply chain organizations to become "fast followers" by leveraging early learnings and technology investments from other functional partners.
Moreover, the survey also highlighted key areas where GenAI is expected to have a significant impact within the supply chain, including code augmentation, providing deeper insights into supply chain key performance indicators, and the implementation of staff assistance chatbots.
Backing up their commitment to GenAI integration, supply chain leaders are allocating substantial budgets, with an average of 5.8% earmarked for the technology along with additional funds for employee training. Sixty-five percent of respondents indicated plans to hire dedicated staff and experts in 2024 to facilitate the deployment of GenAI.