Can GenAI truly transform supply chain management? | Arthur D. Little

Executive Summary

Generative AI (GenAI) has quickly become the technology to watch with the potential to overhaul industries, particularly in supply chain management. It holds promise for making sense of large volumes of unstructured data. Recent global trade disruptions highlight GenAI’s relevance and the limits of traditional AI in fast-moving environments. This Viewpoint evaluates whether GenAI meets the hype using a standardized supply chain model and identifies where it can add the most value. Global supply chains face rising complexity, less predictable risks, changing demands, and the relentless need for efficiency. Traditional AI has been a game changer through rule-based systems, machine learning (ML), and automation, but its limitations are increasingly apparent. GenAI is now broadening its application, redefining decision-making and content creation across the supply chain.