CSCOs Allocating 5.8% of Budget to Gen AI Adoption

Kraft Heinz spending more on AI

Supply chain leaders rush to embrace Gen AI, with Kraft Heinz and Colgate-Palmolive leading the way, according to Gartner’s latest survey.

Supply chain leaders are rapidly embracing General Artificial Intelligence (Gen AI), with notable examples from Kraft Heinz and Colgate-Palmolive, as per the latest survey conducted by Gartner.

In the survey, half of the chief supply chain officers (CSCOs) expressed their intention to adopt Gen AI within the next 12 months, with an additional 14% already implementing such solutions. Approximately 5.8% of their budgets are allocated to these initiatives, seen as pivotal for broader digital transformation objectives.

Only 2% of respondents had no plans to incorporate Gen AI into their supply chain operations. However, the supply chain sector lags behind other business functions like marketing and sales in Gen AI adoption.

Kraft Heinz is actively developing a Gen AI application named KraftGPT, aimed at providing real-time insights across its operations. This aligns with the company’s broader digitalization and automation efforts, including a significant investment in a state-of-the-art automated CPG distribution center in Illinois, scheduled for completion by 2025.

Colgate-Palmolive, another major player in the consumer packaged goods (CPG) industry, is piloting an AI chatbot to analyze e-commerce performance. They are leveraging the Ask Profitero AI assistant, which aggregates data from around 1,000 retailers across 50 countries, to gain valuable insights into pricing, search rankings, availability, video and imagery, as well as customer reviews, to enhance their market strategies.

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