Businesses of all sizes are constantly seeking ways to improve the efficiency, accuracy, and resilience of their supply chain operations. The rapid advancements in AI, particularly generative AI (Gen AI) and machine learning (ML), are opening new pathways for optimization.
A recent study by CGI, commissioned by Supply Chain Digital and Manufacturing Digital, emphasizes the strategic importance of AI investment. The research reveals that 69% of executives believe AI, advanced analytics, and digital twins will be critical in supporting their supply chain initiatives over the coming years.
Furthermore, reports by Epicor and Nucleus Research indicate that 63% of high-growth companies—those with revenue growth exceeding 20% in the last three years—have already integrated Gen AI into their supply chain processes to tackle cost and operational challenges. This data highlights AI's growing role in transforming supply chain management, particularly as businesses continue to navigate economic uncertainties.
“Recent disruptions have shed light on global supply chain vulnerabilities, exposing an overreliance on outdated practices like spreadsheet tracking and a lack of reliable demand forecasting,” says Fang Chang, Executive Vice President and Chief Product Officer at Coupa. “AI and ML can enhance supply chain efficiency and resilience by providing better forecasting. These technologies can analyze vast amounts of data, such as historical sales, market trends, and external factors like weather and economic conditions, leading to more precise inventory management and ultimately benefiting a business's bottom line.”
The Rise of Gen AI and ML in Supply Chains
The rapid ascent of Gen AI and ML into the mainstream began in late 2022, coinciding with the launch of OpenAI’s ChatGPT. Greg Hanson, Group Vice President and Head of EMEA North at Informatica, wasn’t surprised by the pace of this evolution. “The ability to harness data and exploit AI’s potential will determine market leaders,” he notes. “This is particularly true in supply chains, where organizations need agility to react in real-time to dynamic demands and supply chain shocks.”
However, Hanson points out that adoption remains in its early stages, with most global supply chains only using AI and ML for basic challenges, like generating a 360-degree view of supplier profiles. Wider adoption will take time. A report by EY and HFS shows that only 7% of businesses have fully implemented Gen AI, while 62% have had to reassess their initiatives.
The same study indicates that, even among early adopters, only 28% have achieved a “low-human-touch” supply chain, while half have gained end-to-end visibility. Hanson emphasizes that AI and ML success depends on the quality of data. “For organizations to unlock the transformative potential of these technologies, they must first establish solid data foundations,” he concludes.
As businesses continue to adapt to the evolving landscape, AI and ML are set to become central to supply chain strategies, driving improvements across efficiency, resilience, and long-term sustainability.
How Coupa is Leveraging AI to Revolutionize Supply Chain Management
Coupa is at the forefront of integrating AI to enhance operations and deliver superior services to its clients. As a leading AI-driven total spend management platform, Coupa empowers businesses to make smarter decisions and boost profitability using insights from an extensive network, analyzing over $6 trillion in direct and indirect spend data across 10 million buyers and suppliers.Coupa’s AI continuously learns, predicting, prescribing, and automating actions across its platform. This integration bolsters supply chain visibility, future-proofs operations, and mitigates risks. Highlighting the platform’s capabilities, Coupa’s Supply Chain Prescriptions solution helps identify and prioritize the biggest cost drivers, offering actionable insights to reduce expenses and carbon emissions. Additionally, enhanced scenario management data supports informed decision-making, optimizes transportation routes, and validates cost-saving strategies through digital twin technology.
Coupa’s commitment to innovation is reflected in the AI-driven solutions unveiled at the Coupa Inspire conferences in Las Vegas and Vienna. These advancements are designed to streamline payment processes, optimize workflows, and enhance purchasing experiences.
AI Easing Supply Chain Data Management
Informatica is also making strides by embedding AI and ML into data management with solutions like its Gen AI application, CLAIRE GPT. This tool uses conversational prompts to access and interpret complex datasets, enabling companies to manage supply chain data from diverse sources, ensuring clean and well-governed information that enhances overall operations.A notable example is a public health organization leveraging these capabilities to maintain a comprehensive view of a drug’s lifecycle—from inception and manufacturing to regulatory changes and marketing. The integrated view of the global drug supply chain empowers better oversight of suppliers, ingredients, and facilities, ultimately improving supply-demand responsiveness and saving lives.
The Future of AI in Supply Chains
As supply chains face increasing disruption and sustainability demands, AI and ML are poised to become essential tools for enhancing forecasting, visibility, traceability, and transparency. Predictive analytics will allow companies to anticipate demand fluctuations, prepare for unexpected events, and optimize sustainability practices in real time.AI’s ability to seamlessly integrate with existing systems will be crucial as businesses continue digitizing operations. Predictive analytics will be central to this evolution, helping companies forecast challenges driven by geopolitical tensions and environmental shifts.
However, as Informatica’s Greg emphasizes, effective data management is the foundation of successful AI and ML implementation. Companies that build a robust, reliable, and clean data infrastructure will be best positioned to leverage AI’s full potential in transforming their supply chains.
