Goldman Sachs recently reported that approximately 300 million jobs could be affected by generative AI, meaning 18% of work globally could be automated—with more advanced economies heavily impacted than emerging markets. Mckinsey supported this stating that “generative AI and other foundation models are taking assistive technology to a new level, reducing application development time, and bringing powerful capabilities to nontechnical users.”
But what does this mean for the future of the demand planner?
Will Generative AI Replace Your Job as Demand Planner?
In Algo’s recent webinar, Najam Tirmizi, Algo’s Cognitive Product Analyst and Randy Wallets, highlighted that the modern demand planning process is an intricate and complicated job.
Often, demand planners utilize a combination of historical data, customer feedback, and market intelligence to achieve accurate forecasts, as well as keep their supply chain running optimally. This can prove incredibly difficult for even the most seasoned planners.
Fortunately, Generative AI can simplify this task by providing insights into customer behavior and external factors that may influence demand.
AI systems are able to quickly analyze large datasets and detect patterns that would be difficult or impossible for humans to ascertain on their own. By taking into account multiple variables such as seasonal trends or sudden changes in the market landscape, companies can more accurately predict customer demand. Furthermore, automated processes driven by AI are capable of optimizing inventory levels without manual intervention. Machine learning algorithms help businesses analyze past performance and apply rules to automatically adjust stock availability accordingly—allowing them to satisfy customer needs while avoiding excessive inventory costs or out-of-stock issues.
In addition to forecasting consumer behaviors, AI also provides valuable insights into the supply chain itself; identifying areas where processes could be improved upon for greater efficiency. Analytics tools powered by AI offer visibility into any potential disruptions that might occur in the future, so businesses can take proactive steps before they become problems down the line.
The truth is that AI is going to become more prevalent as time goes on. Tata Consultancy Services (TCS) pointed out that generative artificial intelligence would generate an “AI coworker” rather than replace jobs.
“It (generative AI) will be a colleague. It will be a coworker, and that coworker will need time to understand the customer’s context… The context for a job to be completed will be industrial and customer-centric, with input continuing to come from the person being aided in activities by such a coworker, said Tata Consultancy’s Chief Human Resources Officer, Milind Lakkad.
Generative AI is Your Demand Planning Sidekick
Generative AI is an invaluable asset when it comes to improving accuracy and expediting decision making within the realm of demand planning—while simultaneously optimizing inventory levels and ensuring customer satisfaction at all times. By utilizing this technology today’s companies will have a powerful tool at their disposal which helps stay ahead of competition in an ever-evolving business climate.
As more companies adopt AI and develop new applications, the extent of these changes remains to be seen. However, one thing is certain: generative AI is ushering in a new era of limitless potential.
Forward-thinking companies are already working on integrating human capabilities and AI to boost productivity and innovation. Companies embracing this change will enter the future with a competitive edge.
About the author
Algo
Combining human centered AI with deep domain expertise, Algo’s analytics enriched supply chain intelligence platform helps suppliers and retailers plan, collaborate, simulate and execute a more efficient supply chain.
