Half of Supply Chain Organizations Plan to Implement GenAI in the Next Year

Gartner survey shows 5.8% of average supply chain budget to be allocated to the technology in 2024.

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Half of supply chain leaders plan to implement generative AI (GenAI) in the next 12 months, with an additional 14% already in the implementation stage, according to a survey by Gartner, Inc. The survey data also showed that chief supply chain officers (CSCOs) are dedicating 5.8% of their function’s budget, on average, to GenAI.

“CSCOs see GenAI as supportive of their broader digital transformation objectives,” says Noha Tohamy, VP analyst in Gartner’s Supply Chain Practice. “Many supply chain leaders were already leveraging supply chain technologies and advanced analytics, and it’s clear from this data that the majority also see the value in GenAI to enhance productivity, improve business agility and reduce costs. The challenge for many of these organizations over the next 12 months will be in scaling their pilot projects to broader adoption."

Gartner surveyed 127 supply chain leaders in November 2023 on their plans to utilize GenAI within their function for 2024. Nearly two-thirds of respondents plan to, or are already in the process of, implementing the technology, with just 2% of respondents having no plans to do so over the next year (see Figure 1). 


Key Takeaways:

  • The survey also showed that supply chain leaders are backing up their implementation plans with significant budget allocations. Supply chain leaders will allocate 5.8% of their budgets to the technology, as well as incremental employee spend to deploy GenAI. 65% of respondents said they will hire dedicated staff and experts to help deploy the technology in 2024.