AI’s Expanding Role in Supply Chain Decision-Making
Gartner predicts that by 2030, 50% of cross-functional supply chain management solutions will rely on AI agents for autonomous decision-making. This shift, however, isn’t just theoretical. Companies investing heavily in AI are already seeing tangible results, with IBM finding that these organizations report 61% higher revenue growth than their peers.
At our recent Executive Exchange luncheon in Charlotte, senior leaders and academics gathered to explore how these trends are playing out in real time. We discussed not only the opportunities AI presents, but also the limitations, risks, and the critical role of human oversight in shaping its impact.
Hype vs. Reality of AI: Opportunity Abounds, But Human Expertise Is Key
The promise of AI in supply chains is undeniable. From robotic process automation to generative AI, organizations are rapidly adopting new technologies to streamline operations and reduce costs. Yet, as Dr. Rob Handfield, Bank of America Professor of Operations and Supply Chain Management at NC State University and Executive Director of Supply Chain Resource Cooperative, emphasized in his presentation, the real value of AI lies in its ability to augment – not replace – human decision-making. He spoke about how:
- AI excels at scenario planning, but human insight is still needed to interpret outcomes and guide strategy.
- Businesses can use AI to stress test their supply chain, highlighting how teams can utilize this technology to validate their supply network.
Challenges and Opportunities: Data Quality and Ethics
AI’s effectiveness hinges on the quality of the data it consumes. 64% of leaders say that data quality is the biggest barrier to effective Generative AI strategies. Predictive models require comprehensive, clean datasets to avoid false positives and negatives.
That’s where Evalueserve comes in. We specialize in not just deploying AI, but ensuring it works the way it’s intended. From unifying fragmented data sources to enriching datasets with contextual intelligence, we help organizations build the right data backbone for AI to thrive.
During the lunch, we showcased several real-world applications where AI delivered measurable impact:
- Productivity enhancement:
– Our document intelligence platform transformed supplier contract management by automating clause checks, speeding up annotations, and extracting insights from 35,000+ active contracts to save over $1M annually and strengthen compliance.
– For a global CPG firm, we used AI to accelerate cost modeling across 40+ materials, reducing turnaround time from five weeks to under three and improving productivity by up to 50%. - New capabilities:
– For a leading oil & gas company, we deployed AI-powered supplier risk assessments, cutting evaluation time by 33% and gaining a 360° view across 200+ suppliers. This process would have been considered cost-prohibitive due to the sheer manual effort needed otherwise to track 200 suppliers daily.
– For a home appliance manufacturer, we unified fragmented data sources and implemented AI-driven demand forecasting, resulting in $6.5M in annual savings and a 39% improvement in forecasting accuracy. The accuracy improvement was a direct result of the AI and ML driven algorithms used in the process.
These examples illustrate how, when paired with high-quality data and ethical oversight, AI can drive both operational efficiency and strategic resilience across the supply chain.
Final Reflections: AI as a Strategic Partner
The Charlotte Exchange reinforced a central theme: AI is not just a solution; it’s a strategic partner. But like any partner, it needs boundaries, governance, and collaboration. Evalueserve is helping clients navigate this journey by supporting cloud and data migration, building AI-powered platforms, and enabling scenario-based planning.
As we continue to host Executive Exchanges across global hubs, we’re reminded that the future of AI in supply chains isn’t just about technology, it’s about trust, strategy, and human alignment.
About our Executive Exchanges
Evalueserve’s Executive Exchange events provide an unparalleled opportunity for senior executives to connect, share insights, and explore innovative ideas in a relaxed setting over dinner and drinks. Hosted in global business hubs such as New York, Toronto, and London, our exchanges feature engaging expert-led discussions on trends such as digital transformation and AI.
These intimate, invitation-only dinners are carefully curated around key industries including banking, private markets, life sciences and healthcare, technology, and more.
