Generative AI Radar – Logistics and supply chain

Insights

• Generative AI spending by logistics and supply chain companies is expected to grow to by 73% in 2024.
• More than 80% of logistics and supply chain companies have started their generative AI journey.
• Logistics and supply chain firms expect generative AI to increase content generation more than the overall trend.
• Data privacy is the biggest obstacle to generative AI adoption for logistics and supply chain companies.
• 40% of logistics and supply chain companies reported CIOs as the main sponsor of generative AI initiatives.
• Generative AI policies are created by the CIO at logistics and supply chain companies.

This year will bring further developments in generative AI as organizations familiarize themselves with this transformative technology. So where are they now?

Through this study, we aimed to uncover how companies use generative AI, how much they spend on it, how it’s being rolled out, and where it makes an impact. We looked at 3,000 companies across 12 industries:

• Automotive
• Consumer packaged goods
• Energy, mining, and utilities
• Financial services
• Healthcare
• High tech
• Insurance
• Life sciences
• Logistics and supply chain
• Manufacturing
• Retail and hospitality
• Telecommunications

Many companies told us they are already spending significant sums of money - and are set to spend more this year. However, this pattern isn’t the same across sectors. In this data book, we highlight how logistics and supply chain compare with the rest of the pack. All data used in this data book are from Generative AI Radar North America, Europe, and APAC.

Generative AI spending

Logistics and supply chain generative AI spending set to grow in 2024

Logistics and supply chain generative AI spending to grow — Generative AI spending by logistics and supply chain companies expected to grow to $147 million in 2024. However, it is among the five slowest-growing sectors in terms of AI adoption.

Logistics and supply chain generative AI spending

Expected generative AI spending growth in 2024 by industry

Generative AI adoption

More than 80% of logistics and supply chain companies have started their generative AI journey

Most logistics and supply chain companies have initiated generative AI efforts — More than 80% of logistics and supply chain companies have embraced generative AI in some form. However, only 5% have established use cases.

Generative AI adoption by proportion of respondents

Improved content generation drive generative AI optimism

More logistics and supply chain firms expect generative AI to increase content generation than the overall trend

Logistics and supply chain companies expect more of improved content and creativity with generative AI — 28% logistics and supply chain firms believe generative AI has a positive impact on content generation and creativity, more than the overall trend (19%).

Where companies expect generative AI to have the most positive impact

Obstacles to generative AI adoption

Data privacy is the biggest obstacle to generative AI adoption for logistics and supply chain companies

Data privacy is the biggest barrier to generative AI adoption — In line with the overall trend, 30% of logistics and supply chain companies identify data privacy and security as the primary challenge to AI adoption.

Challenges in implementing generative AI

Workforce generative AI readiness

Logistics and supply chain companies have lower confidence for generative AI than the overall trend

Logistics and supply chain firms have lower confidence in their workforce’s readiness for generative AI — Logistics and supply chain firms show less confidence in their workforce’s readiness for generative AI, with only 59% expressing optimism, compared to the overall trend of 67%.

Sentiment on workforce readiness to adopt generative AI by proportion of respondents

Primary sponsor of generative AI initiatives

CIOs lead the charge for generative AI

CIOs are the biggest sponsor of generative AI — 40% of logistics and supply chain companies reported CIOs as the primary sponsor of generative AI initiatives, significantly higher than the overall trend (29%).

Primary sponsor of generative AI initiatives by proportion of respondents

Primary generative AI policymaker

Policy creation comes from CIOs or IT most often

CIOs take point on generative AI policy — 28% of logistics and supply chain companies report CIOs as the primary policymaker, higher than the overall trend (25%).

Primary generative AI policy maker by proportion of respondents

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