Why are AI Investments not Paying Off for Businesses?
Many businesses fail to achieve meaningful returns from AI investments in supply chain planning, with only 20% reporting real value, says BCG
TL;DR
- Many businesses are failing to see significant returns on their investments in AI for supply chain planning.
- A key challenge is the 'maturity gap' in planning processes, where companies lack the structural foundations to benefit from AI.
- Companies with higher planning maturity show significantly better forecast accuracy and reliability.
- Maturity levels vary by region and industry, with global companies and consumer goods sectors showing the most progress.
- Simply integrating AI into inefficient existing systems is a common mistake that leads to wasted investment.
- To achieve meaningful value from AI, companies need to redesign processes, improve data quality, clarify decision rights, and invest in upskilling.
- Only about 20% of companies report meaningful value gained from AI so far, with even less from agentic or generative AI.