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AI at work

Gartner found AI drove staff cuts at 47% of surveyed supply chains, averaging 10.5%. Supply chain managers run the smaller teams.

Gartner surveyed 303 supply chain leaders whose companies already use AI, and published the results on 28 October.

ERP LEADERS news desk · · First reported by Logistics Management · Edition no. 56
Photo: Coolcaesar/Wikimedia, CC BY-SA 3.0 · original

Those that cut staff reported an average reduction of 10.5% over two years. The share reporting fewer entry-level jobs was more than double the share reporting cuts at other levels. Gartner says its top performers are instead giving entry-level staff more skilled work.

Gartner analyst Tess Frenzel said AI "is thinning the entry-level supply chain workforce faster than most chief supply chain officers (CSCOs) are redesigning the talent pipeline."

A week earlier, a study by the Association for Supply Chain Management and the Digital Supply Chain Institute found 83% of respondents say their workers are not ready to use AI effectively. Only 7% expected AI to directly replace human workers.

Our reading for supply chain managers: junior planning and buying seats are where people learn the work senior planners later run. With fewer of those seats, and most leaders in a separate study calling their staff unready, training lands on the same desk as the cuts.

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Companies in this story

Our file on Gartner

  1. 25 Oct

    AWS announced $1 billion for engineers who build AI inside client firms. Gartner advises clients to plan the exit before they arrive.

  2. 25 Oct

    Forrester sees AI taking 20% of tech spend in 2027. Just 22% of those it polled saw AI lift EBITDA.

  3. 22 Oct

    Microsoft added new controls for European cloud customers. A Gartner analyst said he "would not call this complete control."

  4. 22 Oct

    In a Gartner survey, 44% of CEOs said they struggle to prove AI pays off. Most plan bigger technology budgets.

  5. 22 Oct

    Gartner predicted leading firms will make 80% of new apps disposable by 2030. SAP maintains its core ERP system until 2040.

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