Despite rapid advances in artificial intelligence, supply chain leaders still aren't using the technology to dramatically overhaul their processes.
According to a Gartner survey of 140 chief supply chain officers, just 17% said that they're using AI to pursue immediate "transformational" redesigns to their workflows, while 83% are focusing on using the technology for smaller changes related to specific use cases. The driving force behind that trend is that most organizations are still dealing with gaps in data readiness, a need to upskill their existing employees on AI, and a patchwork of disconnected vendors.
"Persistent volatility is driving interest in evaluating AI‑orchestrated capabilities, but investment remains constrained by foundational readiness," said Gartner senior director analyst Caleb Thomson. "Even among leading supply chain organizations that have demonstrated success with performance gains and ROI on their AI investments, few have truly embedded AI into their core operations."
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Speaking at Gartner Symposium/Xpo on May 6 in Orlando, Florida, Thomson highlighted how many companies are still struggling to organize their data, making information across supply chain networks and partners incomplete and unreliable. Many of their supply chain planning tools are also still spread across multiple platforms and departments, all while firms lack clear processes and defined roles for data management.
That has organizations opting for a more incremental approach to AI adoption, giving them the necessary time to build a stronger foundation that can support the technology in a wider capacity down the line.
“Gartner research shows that the business value will be transformative, as it lays the groundwork for future agentic orchestration across the end-to-end supply chain network," Thomson said.
