Supply chain AI investment, application are on the rise

Most C-suite executives responsible for supply chain and production (87%) say they plan to invest more in generative AI, and nearly as many (85%) say they expect to reap the returns of current investments this year. That’s according to an Accenture survey of C-suite leaders across 18 countries and a variety of industries and functions, released this week.

The Accenture Pulse of Change survey polls executives on issues and technology that are driving change, how leaders are responding, and their perspectives on the future. The company surveyed 2,800 executives in March, 348 of which were responsible for supply chain, operations, and/or production.

Although supply chain leaders cited a positive outlook on generative AI, they also emphasized the need for a better understanding of the technology and its potential, as well as the need for widespread training across their organizations. And most have yet to move beyond design and initiative phases with generative AI: Just 14% of the organizations surveyed said they have progressed to fully integrating a “responsible data and AI model” into their enterprise.

According to the survey:

• Three out of four executives (74%) said they need at least some level of training in generative AI; and 18% recognized the necessity for extensive training in this area.
• Just 42% claim to be personally using gen AI tools at least once per week, down from 71% just six months ago.
• More than half (54%) said they believe their organization requires intermediate-level training in the technology, such as prompt engineering and model fine-tuning.
• Two out of five (40%) said they think the most crucial need is advanced training, such as developing generative AI models and applications.
• Just 15% said they are highly confident they have the right data strategy and digital capabilities to use generative AI effectively.

Still, most leaders recognize the game-changing potential of AI. A separate Accenture report from earlier this year found that generative AI could automate or augment 58% of the processes in supply chains. Examples include making demand and capacity planning insights easier to understand and negotiate; enabling natural language assistants for sourcing and procurement; and generating machinery maintenance plans much faster, according to the report.

“Generative AI is already changing how chief supply chain and operating officers think about their data, talent, processes and ways of working,” Maria Rey-Marston, PhD and innovation lead for Accenture’s global supply chain and operations business, said in a statement announcing the survey’s findings. “Executives approaching generative AI merely as ‘just another technology’ will have a rude awakening. We must understand and plan for the change of work on three dimensions: Which tasks can be automated or augmented? Which people need upskilling to use the new technology? And how can organizations embrace the power of GenAI responsibly?”