How can Generative AI Revolutionize Supply Chain Operations? - The Impact of Generative AI Explained.

Supply chains face many challenges due to their ever-increasing complexity. However, now we can now expect accelerated improvement through the use of generative AI.

The ultimate goal of generative AI would be to integrate it with available data lake so that humans can ask questions (like we ask ChatGPT) and get meaningful insights. With a good understanding of the data, people can ask smart questions to get useful answers that will improve supply chain operations saving valuable time.”

Here are 7 ways in which it can disrupt industries.

• Generative AI as a Competitive Advantage.

Industries having access to generative AI can accelerate discovering the priorities at nodes and gets a competitive advantage in the supply chain. It has the potential to predict and thus, prevent problems, making supply chain processes more efficient.

• Data Engineering and Programming as Huge Accelerators

With the use of generative AI, IBM has seen a 90% improvement in the speed of coding. By leveraging AI, we should be able to achieve complex tasks in a shorter amount of time and obtain real-time analytics.

• Faster Decision-Making with Generative AI

Using existing control towers, there is a possibility to locate hidden problems. Generative AI will make decision-making faster by helping us understand what's happening in our supply chain through digital twins in real-time.

• Generative AI for Sustainability

Generative AI technology could play a very interesting role in sustainability if it becomes a platform for collaboration rather than competition! Industries would need to see the bigger picture than the competitive advantages.

• A New Model of S&OP with Generative AI (this, if achieved, could be a real game changer)

Although optimization right now is a bit of a joke because planners are just unable to make consistent, reliable decisions, maybe generative AI can deliver a new model of S&OP, so planners can use more complex data to make better decisions.

• Modeling Supply Chain Scenarios for Better Preparation

Supply chains often face problems that can impact their physical and financial aspects. By modeling different supply chain scenarios and analyzing data during disruptions, we can be better prepared to handle problems.?

• The Ultimate Goal of Generative AI

The end goal for generative AI is to integrate it with data lakes so that people can ask smart questions and get game-changing insights into supply chain operations.

If everything will be done by Generative AI, then what would we be needed for?

-while using ChatGPT to craft a thank you note might result in roughly 80% accuracy, this level of precision falls short of the requirements for enterprises. Therefore, it is crucial to aim for as close to 100% accuracy as possible to ensure the best possible outcomes. HUMAN feedback and timely auditing of employed AI models would be necessary.

-In a highly regulated industry, it will become important to ensure that all actions are performed in accordance with the regulations. This is because, at some point, someone may ask how we are certain that we are obtaining the correct answer. (You might have read about, How GPT4 has shown more than a 70% reduction in accuracy while answering a question about prime numbers in the last 4 months).

"In short - compliance by HUMAN is most needed."

Let me know in the comments, how industries can leverage Generative AI in coming times!

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