At the recent Gartner Supply Chain Symposium/Xpo in Barcelona, experts illuminated critical technology trends poised to reshape supply chain management. Central to these discussions was the concept of agentic AI—systems designed to act autonomously, thereby augmenting human roles and traditional processes. This innovation is expected to revolutionise how businesses operate, particularly under the strain of contemporary economic uncertainties.
Agentic AI frameworks can provide a virtual workforce that not only assists but also initiates actions based on user-defined objectives. Kaitlynn Sommers, Senior Director Analyst at Gartner, emphasised the dual potential of such systems: “Supply chain technology investments need to improve efficiency or contribute to profit growth in today’s climate of uncertainty.” She highlighted how agentic AI could enhance resource efficiency, automate complex tasks, and even pave the way for new business models within supply chains.
The integration of AI into logistics is rapidly advancing, with Gartner forecasting that by 2028, a quarter of logistics operations will utilise generative AI (GenAI) for key performance indicator (KPI) reporting. This shift is anticipated to enable logistics leaders to derive value more swiftly from diverse data sources, enhancing operational efficiency—a critical necessity for many organisations that struggle with extracting insights from complex datasets.
Moreover, the landscape of supply chain technology is expected to evolve significantly. Gartner predicts that over 50% of supply chain organisations will invest in applications that incorporate artificial intelligence and advanced analytics through 2024. This investment aims to bolster decision-making capabilities and optimise operational efficiency. However, challenges remain; as highlighted in their analysis, fewer than 5% of control tower-like systems currently maximise their potential due to cultural and ideological barriers.
The emergence of more sophisticated AI technologies promises to address these gaps. By 2025, it’s expected that more than half of supply chain operations will have a technology leadership role that reports directly to the chief supply chain officer, underscoring the increasing integration of technology at the highest levels of organisational strategy.
Additionally, the transformational potential of agentic AI extends beyond supply chain efficiency. According to industry observations, these systems can facilitate demand forecasting, logistics optimisation, and predictive maintenance by autonomously analysing real-time data and executing decisions. Emphatically, experts from other sectors, including EY, have highlighted that successful implementation of agentic AI relies on robust data architecture and ongoing team reskilling—highlighting the necessity of human involvement in optimising these advanced technologies.
As the use of these technologies proliferates, Gartner projects that 33% of enterprise software applications will incorporate agentic AI by 2028, a stark increase from less than 1% in 2024. This shift signals a significant move towards autonomous decision-making in various business functions, including procurement, where AI agents can drastically reduce cycle times—by as much as 30%—through the automation of repetitive tasks and by enhancing the analysis of large datasets.
The transition towards incorporating agentic AI systems in supply chains is not merely a trend; it represents an evolution that could fundamentally alter how businesses respond to logistical challenges in a rapidly changing global market. As firms increasingly adopt these capabilities, they will likely find themselves better equipped to navigate the complexities of contemporary supply chain management, positioning themselves for sustained competitive advantage.
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Source: Noah Wire Services