High-Growth Companies Lead AI Adoption in Supply Chains

The 2024 Agility Index, a recent study by Epicor and Nucleus Research, reveals that nearly half of the companies in the “make, move, and sell” sectors are grappling with escalating costs. The survey included responses from over 1,700 supply chain management leaders globally. To tackle these challenges, more than half of the respondents have adopted artificial intelligence (AI), automation, or machine learning in at least one area of their supply chain operations.

High-growth companies, defined as those with a revenue growth of 20% or more over the past three years, are leading the way in integrating generative AI into their supply chain processes. According to the study, 63% of these high-growth businesses are utilizing generative AI to manage costs and enhance operational efficiency. This includes applications in product descriptions, customer service chatbots, natural language querying, reporting, and in-application assistance.

“When workers are empowered to spend more time innovating—what humans do best—that’s where the real value creation happens,” said Vaibhav Vohra, Chief Product and Technology Officer at Epicor. “Our 2024 Agility Index underscores the growing adoption of AI and other automation technologies as essential for supply chain businesses to thrive and compete.”

The study found that customer service chatbots are the most prevalent use case for generative AI, with 72% of organizations leveraging this technology to streamline customer interactions. Additionally, 67% of companies are using generative AI to craft product descriptions, which helps in analyzing customer sentiment and forecasting market demand, thereby aiding in more informed product design and feature development.

Machine learning is also widely adopted, particularly in inventory optimization (45%) and demand forecasting (40%). These technologies are crucial for maintaining optimal inventory levels and accurately predicting future demand, which are key to managing supply chain operations efficiently.

Respondents to the survey highlighted increased efficiency and productivity (32%), cost savings (26%), and improved supply chain automation (23%) as the primary benefits of automation technologies. This optimism reflects a strong belief in the potential of AI and machine learning to drive significant improvements in supply chain management.

The survey, conducted between January and March 2024, included participants from the U.S., U.K. and Ireland, and the Asia-Pacific region, with a balanced representation of enterprises and small to medium-sized businesses.