The Gartner Supply Chain Podcast
The GenAI Productivity Paradox
Nov 21, 2024
Sam Burt, a Gartner senior director of research, dives into the evolving role of generative AI in supply chains. The conversation highlights how AI impacts productivity differently for desk-based versus frontline workers, exploring both time savings and potential job reductions. Burt discusses the 'productivity paradox' and how leaders can strategically invest in AI tools. Recommendations for chief supply chain officers aim at maximizing team creativity through collaborative approaches, ensuring that innovation and employee experience are prioritized.
19:15
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Quick takeaways
- Generative AI is expected to lead to significant headcount reductions in supply chain organizations, raising concerns about job stability and workforce structure.
- The impact of GenAI on productivity varies between desk-based and frontline roles, with notable gains for desk positions but limited benefits for team dynamics.
Deep dives
Impact of Gen.AI on Headcount Reduction
Gen.AI is significantly influencing strategic decisions in supply chain organizations, particularly regarding headcount reductions. A survey revealed that 81% of supply chain leaders anticipate a reduction in their workforce due to the implementation of Gen.AI, with an expected decrease of around 8.3%. This anticipated shift raises concerns about the implications for job stability and the overall workforce structure within the supply chain sector. While new technologies often lead to efficiency and job transformation, the expectation of large-scale layoffs may result in premature job cuts, potentially harming the organizations in the long run.
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