February 21, 2025 GenAI Implementation Challenges in the Supply Chain

To successfully implement genAI in the supply chain, effective change management is key.

By Jen Chew, VP of Solutions and Consulting

In today’s technological landscape, the excitement surrounding generative AI (GenAI) is palpable. Companies across industries are eager to harness the transformative potential of AI. However, this enthusiasm is often tempered by a critical gap: many organizations lack the expertise and resources to effectively train their teams in AI skills and manage the organizational changes required to fully leverage AI technology. This is particularly evident in supply chain organizations, where the ambition to implement AI is high, but a clear path to successful execution remains elusive.

While many supply chain companies would like to integrate GenAI into their operations, organizations often hesitate due to uncertainty. Organizations recognize the potential of AI but are unsure how to proceed, increasing the risk of failure and financial loss. To move forward confidently, companies must first address their concerns, ask the right questions, and prepare their teams for the changes ahead.

Addressing Concerns: Cybersecurity and Data Privacy

As with any new technology, the adoption of GenAI brings with it a host of valid concerns. Chief among these are issues related to cybersecurity and data privacy. These concerns are not unfounded—AI systems, particularly those that process large volumes of data, can be attractive targets for cyberattacks. However, the perceived risks may be more manageable than they appear at first glance.

Contrary to initial fears, GenAI has the potential to enhance cybersecurity rather than compromise it. With its advanced behavior prediction capabilities, AI can anticipate and counteract the tactics of cybercriminals before they can cause significant damage. Additionally, AI-driven automation can respond to threats more quickly and accurately than human operators, reducing the window of vulnerability during an attack. While these capabilities do not entirely eliminate cybersecurity risks, they certainly mitigate them, turning GenAI from a potential liability into a powerful defense tool.

Asking the Right Questions: Internal Assessment and Expert Consultation

The potential impact of GenAI on supply chain operations is vast, with applications ranging from inventory optimization to data analysis and forecasting. However, organizations cannot afford to take a haphazard approach to AI implementation. Simply adopting GenAI without a clear strategy is unlikely to yield the desired results. Instead, companies should begin by asking the right questions, both internally and in consultation with experts.

Internally, organizations need to assess their specific needs and capabilities. What problems are they currently facing that GenAI could solve? Where are the inefficiencies in their supply chain that AI could address? Additionally, companies must consider their budget constraints—how much can they realistically invest in AI implementation, and what returns do they expect to see?

Once these internal questions have been answered, the next step is to consult with GenAI experts. These professionals can help organizations determine which AI technologies are best suited to their needs, given their budget and operational goals. Key questions to ask include: What can our budget achieve in terms of AI capabilities? What solutions are available that offer the greatest impact? What does the implementation timeline look like? By working closely with experts, organizations can develop a detailed roadmap for AI integration, with clear milestones and contingency plans to address any challenges that arise.

It’s important to recognize that GenAI is a relatively new technology, and its implementation may not be as straightforward as more established systems. While this doesn’t mean organizations should anticipate problems, it is wise to prepare for potential obstacles. By proactively addressing these issues, companies can ensure a smoother transition and maximize the benefits of AI.

Managing the Change: Training and Adoption

Perhaps the most critical aspect of GenAI implementation is managing the change itself. While executives may be the ones making the decision to adopt AI, it is the employees on the front lines who will interact with this technology daily. As such, ensuring that these employees are adequately trained and prepared is essential to the success of any AI initiative.

GenAI training remains crucial to a successful transition, but these resources may not yet be available. This disconnect suggests that many organizations may move forward with AI implementation faster than their teams can be adequately trained, leading to potential operational disruptions.

To avoid this pitfall, organizations should prioritize ongoing training as a core component of their AI strategy. When seeking advice and support from GenAI experts, companies should ensure that training programs are included in the partnership. These programs should not only cover the technical aspects of AI but also address the cultural and procedural changes that come with AI adoption.

Without the necessary skills and knowledge, even the most well-funded and well-planned AI initiatives can falter. Effective training ensures that employees are not only comfortable using the new technology but also capable of leveraging it to its fullest potential, driving the organization toward its strategic goals.

Embracing Change with Confidence

The prospect of GenAI implementation is undoubtedly exciting, offering the potential to solve complex problems and drive significant improvements in supply chain operations. However, as with any major change, the journey can be challenging. By addressing concerns head-on, asking the right questions, and investing in comprehensive training, organizations can navigate these challenges successfully.

The key to a smooth transition lies in the right partnerships and a commitment to preparing the workforce for the changes ahead. With these elements in place, supply chain organizations can confidently embrace GenAI, transforming their operations and securing a bright future in an increasingly AI-driven world.

About the Author:
As a seasoned leader and strategist, Jen Chew brings extensive experience in advising global multinationals and fast-growing start-ups, specializing in supply chain, manufacturing finance, marketing and branding, digital/enterprise technology, talent, customer experience, and employee engagement. In her current role as Vice President of Solutions and Consulting at Bristlecone, a Mahindra Group Company, Jen is driving the company’s shift to become a consulting-led organization. Drawing from her diverse background, insights from discrete manufacturing, and experience in growing a consulting practice within an India-based organization, Jen leads in a transformative way at Bristlecone.

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