According to a new survey from Gartner, just 23% of supply chain leaders have a formal strategy for using artificial intelligence. Instead of planning long-term, most leaders are focused on short-term gains, an approach that could slow progress and lead to bigger problems down the road.
“CSCOs feel pressure to achieve short-term ROI from their AI investments, but they must ensure these quick wins don’t create future constraints,” said Benjamin Jury, Senior Principal, Research in Gartner’s Supply Chain practice.
Gartner surveyed 120 supply chain leaders who had used AI within the past year. The results show a growing gap between what leaders expect from AI and how they’re actually using it. Most are investing project by project, without a clear plan for the bigger picture.
Jury warned this short-term thinking often leads to what he called “franken-systems”—a patchwork of tech that’s hard to scale and slows down future improvements. “Without a structured approach, organizations risk creating inefficient systems that struggle to scale and adapt to evolving business demands,” he said.
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The survey also found that most leaders measure AI success by looking at cost savings and speed. Metrics like innovation and revenue growth are taking a back seat. That signals that many companies still see AI as a tool to cut costs, not as a way to truly change how their supply chains work.
Gartner recommends that supply chain leaders take a more balanced approach. That means creating a clear AI strategy and investing in both short-term wins and long-term projects that can reshape the business.
They also suggest following a “Run-Grow-Transform” model:
- Run: Use AI for cost-cutting and efficiency.
- Grow: Improve decision-making and connect teams.
- Transform: Use AI to help the business grow and better understand customer demand.
Finally, Gartner says companies must ensure their systems are ready for AI, not just today but in the future. That includes working with IT leaders to ensure new tools can scale and adapt.