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Gartner reveals half of supply organisations plan to implement GenAI over the next 12 months

GenAI

Half of supply side leaders plan to implement generative AI (GenAI) in the next 12 months, with an additional 14 per cent already in the implementation stage, according to new research from Gartner.

The survey of 127 supply chain leaders revealed that chief supply chain officers (CSCOs) are dedicating 5.8 per cent of their function’s budget, on average, to GenAI, with just 2 per cent of respondents having no plans to implement GenAI over the next year.

Elsewhere, 65 per cent of respondents said they will hire dedicated talent to help deploy the technology over the coming year, while data showed the most impactful supply chain use cases include areas such as code augmentation, providing more insights into supply chain key performance indicators and staff assistance chatbots.

“CSCOs see GenAI as supportive of their broader digital transformation objectives,” said Noha Tohamy, distinguished VP analyst in Gartner’s Supply Chain Practice. 

“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 organisations over the next 12 months will be in scaling their pilot projects to broader adoption,” she added.

Gartner GenAI
Source: Gartner (January 2024)

However, Tohamy pointed out that the survey shows that supply chains are adopting the technology slower than other enterprise functions, such as marketing and sales, which could present an opportunity for supply chain organisations to be “fast followers” by capitalising on early learnings and technology investments from other functional partners. 

She added that supply chain leaders are serious about making progress on GenAI solutions this year, according to projected budget data, and  they also recognise the need for additional resources to successfully move beyond small-scale pilots. 

“CSCOs may also be factoring in impacts on employee roles required of their staff as they shift to higher value-add activities, while lower-level tasks are increasingly automated,” said Tohamy.

Catch Jeremy Suter, director – advisory, Gartner at PASA’s ProcureTech 24, where he will discuss the utilisation of technology to closer align procurement with organisational objectives.

ProcureTech 24 will take place online on 20th & 21st March. To find out more and to register now, visit the ProcureTech 24 event page.

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