Gartner Survey Shows AI and Generative AI Top Digital Supply Chain Investment Priorities

The global survey was conducted in June 2024 with 419 supply chain leaders that had influence in their organizations’ digital supply chain strategies (see Figure 1). The survey revealed significant variations in priorities based on geographic region, type of role and industry.

Prioritization of AI lagged in Western Europe, where connected industry objectives remain paramount. The survey also found that business-led roles are much less enthusiastic than their IT counterparts when it comes to prioritizing GenAI.

“While enthusiasm for both traditional AI and GenAI remain high on an absolute level within supply chain, the prioritization varies greatly between different roles, geographies and industries,” said Michael Dominy, VP Analyst in Gartner’s Supply Chain practice. “European respondents were more likely to prioritize technologies that align with Industry 4.0 objectives, such as smart manufacturing. In addition to region differences, certain industries prioritize specific use cases, such as robotics or machine learning, which are currently viewed as more pragmatic investments than GenAI.”

• Twenty-six percent of North American respondents identified AI, including machine learning, as their top priority compared to 14% of Western Europeans.

• Fourteen percent of Western European respondents identified robots in manufacturing as their top choice compared to only 1% of North American respondents.

• Geographical variances generally correlated with industry-specific priorities; regions with a higher proportion of manufacturing respondents were less likely to select AI or GenAI as a top digital priority.

“The variation in regional priorities has implications for those devising supply chain technology roadmaps,” said Dominy. “Companies that have supply chains and operations in multiple geographies might find it more beneficial to invest in digital technologies differently by region versus more common approaches which tend to be by function.”

Another significant divide emerged by organizational role, with only 12% of business-focused roles indicating GenAI was the top priority, compared to 28% of IT roles. The data may indicate that GenAI use cases are currently perceived as less tangible and directly tied to core supply chain processes.

“Business-led roles are traditionally more comfortable with prioritizing established technologies, and the survey data suggests that these business-led roles still question whether GenAI can deliver an adequate return on investment,” said Dominy. “However, multiple industries including retail, industrial manufacturers and high-tech manufacturers have already made GenAI their top investment priority.”