of generative artificial intelligence (AI) in supply chain and procurement, highlighting key points:
Current State of Adoption: Supply chain teams have been slower in adopting generative AI compared to marketing and customer service, but there is a notable shift. Half of supply chain leaders plan to implement generative AI within the next 12 months, indicating a growing interest in the technology. Only 2% have no plans to deploy it.
Role of Supply Chain Leaders: Supply chain leaders are positioning themselves as “fast followers,” catching up with their counterparts in other functions regarding AI adoption, according to Noha Tohamy, a distinguished VP analyst at Gartner.
Top Uses of Generative AI in Supply Chain: Chatbots for staff assistance, code generation, interfacing with other technologies, onboarding new hires, and discovering and diagnosing key performance indicators are identified as some of the prominent uses of generative AI in the supply chain.
Benefits of Generative AI: Generative AI is seen as a valuable tool for processing complex data and technological solutions. It can provide answers to staff questions in natural language, saving time and increasing the return on investment for other technological adoptions. For supply chain planners, it is described as a “force multiplier” that eliminates frustrations and allows more time for better decision-making and collaboration.
Expected Benefits of AI: Supply chain leaders anticipate various benefits from AI implementation, with increased productivity being the top priority for 46% of respondents. Other expected benefits include business agility, cost reductions, support for digital transformation efforts, and improved profitability.
Generative AI in Procurement: In procurement, 43% of leaders plan to implement generative AI within the next 12 months. Anticipated uses include sourcing and contract lifecycle management, supplier information discovery and management, supplier communications, chatbots for sourcing advisory desks, and summarization of proposal reviews.
Staff Reduction Expectations: Both supply chain and procurement leaders foresee generative AI leading to staff reductions. Supply chain leaders expect a 10.4% reduction in headcount by 2026, while procurement leaders plan for a 6.6% reduction. However, these expectations are deemed “overly ambitious” by Tohamy, considering that organizations are in the early stages of adopting and deploying generative AI.