Supply chain organizations face unprecedented challenges – from geopolitical uncertainties to the complexity of global operations. Amid this upheaval, artificial intelligence (AI) has emerged as a powerful tool to overcome these obstacles.
By leveraging the vast potential of AI, businesses can enhance visibility, optimize decision-making, and develop the agility needed to thrive in an uncertain world.
Modern supply chain challenges
Mary Rollman, KPMG’s supply chain leader says these challenges, whether natural disasters or global conflicts, will continue to ebb and flow. However, the intensity and frequency of these obstacles are changing, rapidly.
Coupled with the e-commerce boom, which sees thousands of brands competing with each other on a global scale, the challenges almost seem insurmountable.
Think about this: policy volatility, different shipping schedules, inventory management, and more.
Rollman says supply chain organizations must invest in and implement technology tools to streamline operations.
This is where generative AI (Gen AI) steps up to bolster supply chain resilience.
Gen AI for supply chain resilience
A buzzword of late, Gen AI is a machine learning system mostly associated with generating text and images, but it can also automate tasks and analyze data. Accenture research shows that it could automate up to 58% of supply chain processes.
Where supply chain disruptions have cost businesses up to $1.6 trillion in missed revenue opportunities over the last two years, Gen AI analyzes structured data to produce a much more robust insight into supplier networks.
Procurement teams can use this technology to create chatbot interfaces, such as Accenture’s N-tier Supply Chain Navigator, a chatbot powered by Open AI’s language model.
To boost customer satisfaction, Gen AI can analyze large quantities of unstructured feedback – such as online product reviews and social media sentiment – at speeds no human can compete with.
This data can then be used to improve products and service offerings, support product development, create product design workflows, and a myriad of other ways to translate customer feedback into actionable insights.
Real-world applications of Gen AI
Retailers have begun using AI to transform online shopping, from virtual try-ons to product brainstorming and boosting customer satisfaction. Companies are using Gen AI to develop strategies and remain competitive.
Cashing in on one such opportunity is Amazon with its $25 million investment into science and AI. The retail giant is also partnering with universities and NVIDIA to strengthen cooperation in artificial intelligence research.
Why is generative AI perfect for the retail space? According to a McKinsey & Company report, Gen AI’s ability to rapidly digest mountains of data and draw conclusions from it sets it apart from other tech tools.
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About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
