May 02, 2023 | Supply Chain Strategy
If there was any doubt about how artificial intelligence can change the business landscape, the launch of ChatGPT has proved to be decisive.
Businesses across industries are currently exploring how they can make the best use of this generative AI tool.
In fact, nothing perhaps is more important for a business today, considering the technology’s growing popularity as well as the extent to which it can impact (and simplify) business processes.
For many businesses, the question isn’t whether they will (or won’t) use this disruptive technology. Instead, it is about how and when they will start using it.
Like many other domains, supply chain professionals are currently not sure what is good (or bad) about this technology. They have a lot of questions about the use cases of this technology. Some of these questions are:
For now, not all these questions can be answered.
What can be done though is investigate how this technology can make a difference in the working of supply chains.
While it’s still early days yet, generative AI technology can make a huge impact on supply chains. Here are some ways it can transform the working of supply chains:
In addition to the above, many other use cases are likely to emerge as this AI technology continues to evolve and its capabilities are better understood.
Clearly, ChatGPT is set to influence the working of every business function, and not just supply chains. In the case of non-supply chain applications, it is likely to become mainstream in the near term.
However, as supply chains are complex and business-specific, the use of generative AI in this domain may not be immediate. It may take years to make inroads into the working of supply chains.
As of now, it’s best for supply chain professionals to put their thinking caps on and explore the many benefits this technology has to offer. Automated processes and decision making, inventory management, data analysis, demand forecasting, supplier collaboration – all supply chain functions may work very differently in the not-too-distant future.
It is also important to note that human oversight and intervention is still required in supply chain operations. That’s because the results provided by technology must be validated for accuracy. Technology cannot make decisions on its own. It can support decision-making.
At the same time, organizations must also develop some guidelines for supply chain professionals to educate them about how to use (and not use) this technology.
Want to know how ChatGPT will impact procurement?