Supply Chain Executives Optimistic About AI’s Transformative Potential
A recent survey conducted by the IBM Institute for Business Value (IBV) in partnership with Oxford Economics has revealed that C-level supply chain executives are highly optimistic about the impact of leading-edge artificial intelligence technologies on their operations. The survey, which polled over 300 global chief supply chain officers (CSCOs) and COOs from organizations implementing AI-enabled automation, sheds light on the expectations and challenges associated with the adoption of agentic AI and generative AI in supply chain management.
Agentic AI: Enhancing Operational Efficiency
Agentic AI systems, which offer a virtual workforce of embedded AI agents, are expected to significantly enhance adaptability and efficiency in supply chain operations. The survey found that 62% of respondents believe that AI agents embedded in operational workflows accelerate decision-making, recommendations, and communications. Moreover, 70% of respondents anticipate that by 2026, their employees will be able to drill deeper into analytics to support real-time analysis and optimization as agentic AI automates operational processes, particularly in procurement and dynamic sourcing. A significant 76% of respondents also expect overall process efficiency to improve as AI agents perform repetitive tasks at a faster pace than humans.
Generative AI: Unlocking New Possibilities
Generative AI, which uses large language models to communicate in a human-like format and create new content, is also seen as a game-changer. When asked about the top benefits of generative AI, 67% of respondents cited operational performance, while 60% highlighted predictability and responsiveness to operational disruptions. A substantial 74% of respondents believe that generative AI enables better visibility, insights, and decision-making across ecosystems. However, concerns around data accuracy, bias, and security were also raised, with 72% and 63% of respondents citing these as issues, respectively.
Investment and Impact
Respondents from organizations making larger investments in generative AI were more optimistic about its supply chain impact. They were 68% more likely to expect improved supply chain management, 61% more likely to anticipate real-time bottleneck detection through visualization and simulation, and 36% more likely to expect accelerated innovation in supply chain product design. Moreover, organizations with higher AI investments reported 61% greater revenue growth than their peers.
Challenges Ahead
Despite the optimism, supply chain executives face significant challenges, with geopolitical risks (61%) and global trade tensions (58%) topping the list. Other findings from the survey suggest that while generative AI has the potential to validate and aggregate information reliably for employees, concerns around talent and cost pressures could impact the effective implementation of AI tools in supply chain operations.
As the survey highlights, the future of supply chain management is closely tied to the successful adoption and integration of AI technologies. While challenges persist, the potential benefits of agentic AI and generative AI in enhancing operational efficiency, decision-making, and innovation are substantial.
