AI integrations and other tools for business automation are already growing the supply chain technology market, according to US-based Meticulous Research.
“Businesses are adopting automation technologies to increase efficiency, reduce manual efforts, and optimise costs and the utilisation of resources and time,” according to the announcement.
“AI is increasingly being integrated into automated workflows, with supply chain processes, such as order processing, inventory management, and logistics benefiting from reduced staffing needs and time and cost savings.”
According to the Redding, California based researcher, supply-chain focused AI is projected to near $59 billion (£45bn) by 2031. This represents a compounded annual growth rate (CAGR) of about 40% from 2024 until 2031.
New AI functionality for customers and channel
Solutions like Microsoft’s Copilot have garnered the lion’s share of attention However, independent software vendors including companies like JetBrains and GFI Software have moved to add AI integrations for customer and channel partner end-users.
JetBrains’ generative AI Assistant primarily focuses on assisting developers to write and release better code with a view to accelerating software development cycles.
This is a move that can benefit enterprise applications in all sectors and segments. For example, supply chain technologies such as platform integrations and enterprise resource planning (ERP) platforms.
Better management and monitoring
Security, management and network communications specialist GFI Software has announced it is incorporating AI components across its portfolio.
The Copilot for GFI’s Exinda Network Orchestrator is aimed at helping manage network bandwidth. The idea is to promote availability and resilience across multiple applications with real-time data.
GFI presented at the Managed Services Provider (MSP) summit in London in September. It noted that AI enhanced solutions could help deliver more sustainable IT services and security.
Beyond the supply chain, Meticulous also sees the total enterprise AI market reaching $172 billion by 2031, at a slower 33% CAGR, it added.
Myriad organisations have invested in AI augmentation for their flagship software and services suites, from machine learning (ML) to chatbots and copilots. They see a data-fuelled competitive edge emerging to offset procurement and operating costs, including for AI itself.
Benefits can include network transparency and availability.
“Rising demand for cloud-based supply chain solutions is a prominent trend,” the researcher added, noting that market opportunities for players would follow.
According to Meticulous Research, the manufacturing segment is forecast to have the largest share (23.1%) of AI in the supply chain in 2024. However, retail is expected to grow fastest during the 2024-31 timeframe, at a near 48% CAGR.
Supply chain AI software sales are expected to grow faster than AI-enabled hardware (such as processing modules) from 2024-31. This would mean ratcheting up a CAGR of about 43% in the period.
ML integrations would comprise the largest share of supply chain AI, it noted.
( Image by Alexandra_Koch from Pixabay )
