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  • Writer's pictureJeremy Conradie.

Gartner Warns 'Real Risk' Supply Chain Leaders Could Misuse GenAI

A recent report from research firm Gartner warns that, while generative artificial intelligence (GenAI) can be a valuable resource for supply chain workers, it also comes with some potential pitfalls

The study included a survey of 822 chief supply chain officers (CSCOs) and business executives, "data shows that there is a real risk that many CSCOs will use GenAI to double down on poor assumptions," said Gartner senior research director Sam Berndt.

Gartner identified three of those poor assumptions:

The first is that GenAI can be used as a tool to cut down on labor costs. Focusing on that as a goal could alienate workers that feel their long-term career prospects are being threatened, and Gartner recommends instead using GenAI to help develop worker skills, improving retention and boosting productivity. 

The second misconception is that GenAI will replace entry-level supply chain employees. Instead, CSCOs can advertise their use of the technology to attract new workers, Berndt said. “GenAI use and accessibility can be a powerful recruitment tool for younger generations who view working with the technology as a job benefit,” he said.

The third and final misconception is that GenAI is "tangential" to the lives of supply chain employees. Gartner recommends clear and consistent communication with workers on the ways companies are planning to integrate the technology, and how that will affect individual workflows. 

Of 127 supply chain leaders Gartner surveyed in November 2023, 64% said they plan to implement GenAI in some way by the end of this year. 

Source: Supplychainbrain

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