Global survey reveals varied digital investment priorities among supply chain leaders

A recent global survey conducted by research and advisory firm Gartner, Inc. highlights the differing priorities among supply chain leaders when it comes to digital investments, with a notable focus on Artificial Intelligence (AI) and generative AI (GenAI). Conducted in June 2024, the survey gathered insights from 419 supply chain professionals who play a significant role in shaping their organisations’ digital strategies. The findings underscore considerable disparities across regions, roles, and industries.

AI, including machine learning, emerges as a top investment priority for many, but the enthusiasm for these technologies varies significantly depending on the geographic location. In North America, 26% of respondents prioritised AI investments, reflecting a robust interest in the potential applications of AI technologies within supply chains. By contrast, in Western Europe, only 14% of respondents ranked AI as their top priority. Instead, 14% of respondents in this region preferred to focus on robotics in manufacturing, aligning with broader Industry 4.0 objectives such as smart manufacturing.

These regional variations are influenced by the prevalence of certain industries within each geography. For instance, areas with a strong manufacturing presence, particularly in Europe, show a tendency towards prioritising technologies relevant to connected industries, which may seem more directly applicable and beneficial in the immediate term than AI.

Michael Dominy, Vice President Analyst with Gartner’s Supply Chain practice, commented on these trends, noting, “While enthusiasm for both traditional AI and GenAI remain high on an absolute level within supply chains, the prioritisation varies greatly between different roles, geographies, and industries.” He highlighted that European respondents often favour technologies that align with Industry 4.0 goals, while other industries may view certain AI applications, like machine learning in robotics, as more pragmatic.

The survey also identified a significant divergence based on organisational roles. IT-focused roles exhibited more eagerness towards GenAI, with 28% marking it a priority, compared to a mere 12% of business-focused roles. This difference suggests that IT professionals see more immediate or future potential in GenAI for enhancing supply chain processes, whereas business-led roles remain cautious, questioning its direct return on investment.

Moreover, certain sectors, including retail, industrial manufacturing, and high-tech manufacturing, have already placed GenAI at the forefront of their investment strategies, indicating that specific industries anticipate tangible benefits from early adoption of these technologies.

These insights are expected to influence how companies invest in digital technologies across different regions, as businesses might benefit from a tailored approach based on geographic and industry-specific needs rather than a one-size-fits-all strategy.

Gartner’s Supply Chain Practice, which provides these crucial insights, aims to support supply chain leaders and their teams in navigating disruption and encouraging innovation through advanced supply chain management practices. More information on these findings can be accessed through Gartner’s official publications and resources.

Source: Noah Wire Services