Study reveals the impact of Artificial Intelligence on operations management and supply chains

Generative artificial intelligence (Generative AI) is revolutionizing operations and supply chain management (OSCM), bringing the promise of greater automation, efficiency, and personalization. Tools like ChatGPT enable more intuitive and complex interactions, accelerating the adoption of these technologies. Companies across industries are exploring these AI innovations in the supply chain, but implementation faces challenges related to data, technology, and organizational adaptation.

In this context, researchers Maciel Queiroz (FGV EAESP), together with Samuel Fosso Wamba, Cameron Guthrie and Stefan Minner, published a study on the subject in the  International Journal of Production Research . Using an exploratory and descriptive approach, the researchers analyzed 300 responses from managers of companies in the USA and the UK.

What are the benefits and challenges of using Artificial Intelligence in the Supply Chain?

Reported projects ranged from proofs of concept and prototypes to full implementations. Companies are using Generative AI to automate processes such as demand forecasting, resource planning, and inventory management. For example, companies are using ChatGPT to analyze historical data and optimize inventory levels. They are also using it to improve customer service with fast, personalized responses.

The most cited gains were in relation to customer satisfaction, cost reduction, process efficiency and greater automation. As for the future, two expected benefits stood out: increased sustainability and advances in automation.

The research revealed that data quality, privacy and security are the top barriers, followed by technological complexity and employee resistance. These challenges are linked to the early adoption phase and the need to overcome organizational and cultural barriers.

The results indicate that Generative AI is currently focused on optimizing operations and processes. However, to achieve strategic benefits, such as new business models and greater sustainability, companies need to overcome adoption challenges.

Therefore, operations and supply chain managers should consider aspects such as data governance and employee training early on to maximize results. In addition, industries should explore Generative AI not only as an operational tool, but as an opportunity for strategic transformations.

In summary, the study reinforces that Generative AI is a promising innovation for operations and supply chains, but requires careful planning to reach its full potential.

Read  the full article.

 

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