Strategic focus and right approach: Keys to driving GenAI adoption in supply chains

Generative AI (GenAI) is reshaping supply chain operations, moving beyond incremental improvements to deliver transformative capabilities. By enabling smarter, faster, and more adaptive decision making, GenAI offers enterprises an unparalleled opportunity to address complex challenges and seize new opportunities. However, data from HFS’ recent survey shows that while its potential is clear, many organizations are still in the early stages of adoption, with success hinging on strategic focus and thoughtful implementation.

• The 32% reporting better-than-expected results showcases the optimism about GenAI’s transformative potential. This reflects that enterprises analyzing GenAI’s potential and identifying high-impact use cases that can deliver quick wins (such as improving logistics routes, enhancing supplier collaboration, and predicting demand surges) have seen measurable improvements in efficiency, cost reduction, and operational agility. These early successes indicate that organizations strategically implementing GenAI can unlock significant supply chain efficiencies, driving competitive advantage.
• 45% of respondents stated it is “too early to tell” the success of their GenAI initiatives, indicating that most enterprises are cautiously optimistic but recognize that meaningful results take time to materialize. Like any other adoption of new technologies, leaders are skeptical about the long-term benefits of their tech investments. Currently, many organizations are focusing on integration, process alignment, and overcoming data quality hurdles before tangible results emerge.
• With only 9% reporting negative outcomes, this small percentage suggests that while challenges exist, dissatisfaction with GenAI implementations is not prevalent. Overcoming GenAI adoption challenges requires a strategic approach rather than instant transformation plans. Before scaling initiatives, enterprises must evaluate and prioritize specific pain points where GenAI can add measurable value—such as demand forecasting, supply chain visibility, or process automation.

Only the right approach can help enterprises unlock GenAI’s transformation potential

It is important to focus on measurable outcomes, building capabilities, and fostering collaboration so that enterprises can lead in the dynamic and complex global supply chain landscape. By targeting the specific challenges that have measurable outcomes, focusing on market trends and customer expectations, investing in robust foundations such as data infrastructure, scaling the IT infrastructure with the right technology platforms, upskilling teams, breaking down silos to align goals, reiterating AI goals, and setting clear KPIs, enterprises can transform their supply chains into strategic assets that drive resilience, agility, and sustained competitive advantage.

The Bottom Line: Enterprises that align GenAI projects with realistic expectations and incremental milestones report greater satisfaction levels.

When strategically applied, GenAI can effectively address specific supply chain challenges, delivering significant value in both the short and long term. Early adopters achieving the results are now better positioned to scale their AI initiatives and drive further innovation across their supply chain ecosystems. Service providers, in particular, have an opportunity to play a critical role in guiding enterprises toward successful deployments with their expertise and scalable solutions.