AI in Supply Chain: Cutting Through the Hype and Unlocking Real Value – Part 5
Why Humans Will Always Be Needed in Supply Chains
AI excels at processing vast amounts of data and automating repetitive tasks, but it lacks the ability to make contextual and strategic decisions. For example:
- If a delivery schedule needs to change, a human planner must decide whether to prioritise the biggest customer or the longest-standing one—a decision AI cannot make with nuance.
- Planners spend too much time explaining delays to customers instead of fixing root causes. AI can help reduce clerical workload so they can focus on problem-solving rather than damage control.
At a recent conference, a representative from a major Australian bank mentioned their use of AI to improve customer satisfaction. However, the reality was that complaints had decreased simply because customers didn’t want to engage with chatbots. This highlights AI’s current limitation—it can’t communicate with empathy and nuance the way humans can.
Furthermore, as AI becomes more common in workplaces, human oversight is still an important safeguard as AI is far from infallible. Inaccurate or biased data could lead to poor decision-making, while an overreliance on AI could weaken human problem-solving skills.
Implementing AI requires staff training, causing temporary disruptions. The technology can also be costly to introduce as organisations must invest in software, machine learning models, plus integration and customisation expenses. AI systems also require ongoing monitoring and adjustments by supply chain planners, particularly when it comes to security vulnerabilities and the risks of data breaches.
Tim Gray, Managing Director, Prophit Systems.
