When workers are empowered to spend more time innovating, real value creation happens” – Vaibhav Vohra, Epicor

A notable 63 percent of businesses identified as high-growth — achieving a remarkable revenue growth rate of 20 percent or more over the past three years — have already embraced generative AI to enhance their supply chain operations. This strategic adoption aims to tackle pressing challenges related to cost management and operational efficiency.

The insights stem from a comprehensive survey conducted by Nucleus Research, encompassing over 1,700 global leaders in supply chain management. The study sheds light on the increasing trend of leveraging cutting-edge technologies like artificial intelligence (AI) and machine learning (ML). These technologies play a pivotal role in helping enterprises navigate the complexities of modern supply chains, including disruptions, rising operational costs, and shortages in skilled labor. Moreover, the research provides valuable insights into future investments earmarked for these transformative technologies.

Vaibhav Vohra, Chief Product and Technology Officer at Epicor, underscores the significance of empowering workers to innovate freely: "When employees are empowered to focus on innovation — a quintessential human capability — they drive real value creation. This agility underscores the escalating adoption of AI and automation technologies, pivotal in enabling supply chain businesses to thrive and maintain competitive advantage." These cognitive capabilities are instrumental in enabling businesses to adapt swiftly to fluctuating market dynamics, ensuring enhanced customer satisfaction and operational efficiency.

According to the survey findings, generative AI is increasingly integrated into digital supply chain operations across various functions such as optimizing product descriptions, enhancing customer service through AI-driven chatbots, facilitating natural language queries, automating reporting tasks, and providing in-application assistance. Of these applications, the deployment of generative AI in customer service chatbots stands out as the most prevalent, adopted by 72 percent of organizations. This widespread implementation underscores the technology's effectiveness in streamlining customer interactions across diverse sectors, thereby enhancing overall service delivery.

Similarly, 67 percent of organizations harness generative AI to craft product descriptions, leveraging its advanced capabilities to analyze customer sentiment and forecast market demand. This data-driven approach enables businesses to make informed decisions regarding product design, feature development, and market positioning. Machine learning, another transformative technology, is predominantly employed for inventory optimization (45 percent) and demand forecasting (40 percent). These applications highlight machine learning's critical role in managing inventory levels efficiently and accurately predicting future demand patterns, thereby optimizing supply chain performance.

Survey respondents conveyed a sense of optimism regarding the transformative potential of automation technologies within supply chain management. They foresee substantial benefits, with 32 percent anticipating increased operational efficiency and productivity. This expectation reflects a belief that automation can streamline workflows, reduce manual tasks, and optimize resource allocation, thereby enhancing overall efficiency.

Additionally, 26 percent of respondents expect significant cost savings through automation. By automating repetitive and labor-intensive processes, businesses can potentially lower operational costs, minimize errors, and optimize resource utilization, leading to improved profitability and financial performance. Furthermore, 23 percent of survey participants anticipate enhanced automation across supply chain processes. This includes the integration of AI-driven solutions for inventory management, demand forecasting, logistics optimization, and customer service enhancements. Such advancements are seen as critical for fostering agility, responsiveness, and scalability within supply chain operations.

Overall, this optimistic outlook underscores a strong belief among industry leaders that AI and automation technologies will play a pivotal role in driving substantial improvements in supply chain management practices. By leveraging these technologies effectively, businesses aim to achieve competitive advantage, meet evolving customer expectations, and adapt swiftly to dynamic market conditions.