A recent report from research and consulting firm Gartner shows that despite a growing trend toward adoption of Generative AI (GenAI), chief supply chain officers’ (CSCOs) optimism about its potential could adversely affect talent strategies within their organizations.
Supply chain executives lead in indicating planned headcount reductions by 2025, raising questions about the future of talent within the industry.
Gartner’s research, based on data collected from 822 business executives, including 112 from the supply chain function, highlights concerns about the impact of GenAI deployment on the workforce.
“GenAI should be an opportunity for CSCOs to make good on many of their talent aspirations, including freeing their teams up for higher value work and attracting top-tier technical talent,” said Sam Berndt, senior research director in Gartner’s Supply Chain Practice. “However, our data shows that there is a real risk that many CSCOs will use GenAI to double down on poor assumptions that have already resulted in talent shortages, burnout, and retention challenges for the function.”
Despite 64% of supply chains planning to adopt GenAI in some capacity this year, CSCOs still have the opportunity to implement necessary adjustments to ensure that their investments in GenAI foster empowerment rather than estrangement among their workforce.
Misconceptions
The report identifies three key misconceptions that could negatively affect supply chain talent:
1. The belief that GenAI primarily focuses on labor cost savings overlooks its potential to unlock new levels of productivity and skill development, thus risking alienating the workforce.
“Employees who receive access to GenAI tools quickly notice a broad range of benefits, from improved decision-making to better skill development,” said Berndt. “GenAI then becomes supportive of retention, as it improves the employee experience, and the organization can reap the associated productivity benefits.”
2. The assumption that GenAI disproportionately affects early career employees could hinder recruitment efforts, as younger generations increasingly view working with such technology as a job benefit rather than a threat.
“Instead of viewing GenAI as a threat to entry-level employees, CSCOs can advertise their use of the technology as an effective recruitment tool,” Berndt said. “GenAI use and accessibility can be a powerful recruitment tool for younger generations who view working with the technology as a job benefit.”
3. The lack of communication about GenAI’s implications for the workforce leaves employees speculating about their future job security, creating unnecessary anxiety and uncertainty.
“Even a skeptical CSCO with minimal plans for GenAI should provide clear communications about the organization’s plans for the technology, and how it will affect the future of work,” said Berndt. “Employees are already forming conclusions about it that are almost certainly more negative than what CSCOs would want.”
Berndt urges CSCOs to address these misconceptions by emphasizing GenAI’s broader benefits beyond cost reduction, promoting its use as a recruitment tool, and providing clear communication about its impact on the future of work.