AI PROVES ITS WORTH
As AI adoption increases, a recent survey conducted by McKinsey shows that a majority of companies that has adopted AI has seen an increase in revenues in the business areas it is used, and 44% say AI has reduced costs.
For Supply-chain management, the functions that have shown more returns are logistics-network optimization, sales and parts forecasting, warehouse optimization, inventory and parts optimization, spend analytics, and sales and demand forecasting.
In addition, the survey also reports that more companies are beginning to scale AI and the pace of adoption will likely continue in the near term, with 74% of respondents whose companies have adopted or plan to adopt AI saying their companies will increase their AI investment in the next three years. More than half of these respondents expect an increase of 10% or more. When we look into high performance companies, they plan to increase investment in AI by 50% or more in the next three years.