AI in Supply Chain: Cutting Through the Hype and Unlocking Real Value – Part 4

AI as an Assistant, Not a Replacement

When marketing firm RRD surveyed more than 300 supply chain decision-makers, it found that while AI is gaining interest, it’s attracting less investment than technologies like real-time visibility and the Internet of Things. The survey found that companies embracing AI, apply it to some of their most central supply chain functions with 59% using it to support supply forecasting, 56% for visibility and tracking, and 56% to help optimise operations.

Some companies are experimenting with AI-powered supply chain analytics, but many don’t like the answers they get. For example, Dell’s AI-powered supply chain system (Aera Technology) automates decision-making with 90% of AI recommendations accepted and 77% automatically executed. This system makes 30,000 significant supply chain decisions, reducing human workload. However, many of our clients lack the resources to do the same. AI is not a magic wand—it can only optimise what is already well-structured.

Gartner predicts 15% of daily logistics decisions will be made autonomously through AI agents by 2028. However, the dream of “lights-out” supply chain management (full automation) is impossible if we cannot even frame the problem properly. We must start with people and training before expecting AI to provide meaningful solutions.

Tim Gray, Managing Director, Prophit Systems.