**London**: A recent Gartner study reveals that while 72% of supply chain organisations have adopted Generative AI, productivity gains are minimal, leading to increased workplace anxiety. Experts urge a shift in strategy towards integration, collaboration, and effective talent utilisation to maximise AI benefits.
Despite the widespread adoption of Generative AI (GenAI) within supply chain organisations, many are finding the results underwhelming, according to a recent study by Gartner. The report indicates that while 72% of supply chain entities have implemented GenAI technologies, the anticipated productivity increases are not materialising as hoped. Instead, a phenomenon described as “AI-induced anxiety” is emerging, which is adversely affecting overall workplace efficiency.
The findings from the Gartner study illustrate a complicated scenario: while individuals using GenAI tools are saving, on average, more than four hours each week, these time savings do not translate effectively to team dynamics. At the team level, productivity gains reduce to a mere 1.5 hours per person. This dissonance raises concerns, as the implementation of additional AI tools seems to be compounding workplace stress and establishing what some call a “productivity doom loop.”
Sam Berndt, Senior Director at Gartner’s Supply Chain practice, commented on the situation, stating, “In their pursuit of efficiency and time savings, CSCOs may be inadvertently creating a productivity ‘doom loop,’ whereby they continuously pilot new GenAI tools, increasing employee anxiety, which leads to lower levels of productivity.” He emphasised the necessity for Chief Supply Chain Officers (CSCOs) to critically reassess their strategies rather than simply increase the deployment of GenAI technologies.
In light of these findings, experts suggest a fundamental shift in how CSCOs approach GenAI. Instead of solely pursuing isolated efficiency improvements, it is argued that a focus on alignment, integration, and workforce adaptation is essential. The emphasis should be on applications of GenAI that foster collaboration and strategic outcomes, particularly in areas like innovation, scenario planning, and complex decision-making processes.
Moreover, organisations are encouraged to re-evaluate their talent strategies, focusing not just on the functionalities of AI tools but also on how employees can effectively utilise the time saved to tackle more complex challenges. Training programmes should be redesigned to enhance staff capabilities in leveraging AI insights effectively.
Additionally, experts recommend reassessing how success is measured. Traditional metrics that focus on hours saved may not adequately reflect the true value created through AI deployment. Instead, a new paradigm should emerge, one that prioritises how AI advancements contribute to better decision-making, more robust supply chains, and enhanced adaptability within an organisation.
It is increasingly recognised that the successful integration of GenAI hinges significantly on its alignment with broader business strategies. Leadership must ensure that AI initiatives resonate with long-term organisational objectives, fostering an environment where automation complements, rather than disrupts, collaborative efforts, innovation, and workforce confidence. As CSCOs navigate this landscape, those adopting a transformative view of AI—as a catalyst for change rather than merely a tool for cost reduction—are likely to gain a competitive advantage and unlock the full potential of GenAI in their operations.
Source: Noah Wire Services
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