THELASTMILE Logistics Outside the Box
Behind the AI Hype
Industry insiders agree: The impact of artificial intelligence on supply chain management will be transformative. But how soon are we talking and who will be most affected? Wrap your mind around these projections:
Consensus on AI 97% of senior executives say generative AI foundation models (also known as large language models or LLMs) will transform company operations, according to a recent Accenture survey. And 100% anticipate changes to the workforce, Accenture found. Who Will Be Most Affected? The roles of procurement clerks and production, planning, and expediting clerks will be the most impacted: 72% and 75% of their time can be augmented or automated by generative AI, Accenture research found.
Quick Checklist for Choosing AI [ ] Does the AI project align with the company’s goals? [ ] Can we measure its impact? [ ] Should it augment or replace processes? [ ] Is this a problem AI can solve? [ ] Does the organization have access to pertinent data? [ ] Does the team have the
43% of all working hours across the entire supply chain function are expected to be impacted by artificial intelligence, according to analysis by Accenture:
● 29% (generative AI automating activities) ● 14% (AI augmenting the work of humans)
Value to Come in Months Companies can generate value from implementing AI projects within months, not years, says a KPMG report. 57% of the executives who participated in the 2023 KPMG Global Tech survey say AI will help them achieve short-term goals. But Wait... An estimated 80% of artificial intelligence projects will fail, according to Harvard Business Review . (See sidebar for how to beat the odds and choose an AI system.) Tapping a Wealth of Data “Supply chains are data-rich. They generate abundant transactional and contextual data along the product transformation and distribution pathways. The greatest opportunity for supply chain practitioners is to harness emerging technologies, such as generative AI, and big data, both structured and unstructured, so that both the individuals and algorithms that operate our supply chains can make better decisions and drive business performance.” –Maria Rey-Marston, Ph.D., Innovation Lead, Global Supply Chain and Operations, Accenture
needed technological capabilities and skills?
[ ] Have we looked at
ethical considerations?
Sources: Accenture; Harvard Business Review; KPMG
64 Inbound Logistics • March 2024
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