But generative AI is less magic and more like a magic trick, since it can do remarkable things but only under carefully controlled circumstances. A magician can pull a rabbit out of a hat on stage but can’t do repeat the trick again on command in a casual, unexpected encounter. Magic works based on a sequence of steps performed in a specific order to (mis)direct the audience’s attention. Unlike a supply chain, these steps rely on no disruption to their execution.

The only honest answer to any question about the future of AI is “I don’t know.” The pace is moving so quickly that no one can possibly keep up. So instead I want to direct attention to what I do know.

What I do know best is that guiding a supply chain in the age of AI requires three leadership skills, all of which are uniquely human.

Directing attention to the right things is the second critical skill. Magic and leadership both depend on proper direction of our attention, and FOMO about AI may be distracting you. ChatGPT may be the shiny object du jour, but a sure ROI is investing in people and process to enable technology investments. Many problems land on a leader’s desk – the challenge is recognizing which ones really matter and sustaining attention on them. Generative AI has an “attention mechanism” to help it weigh the importance of words in a sentence, but it cannot match human judgement.

We should strive to relieve planners groaning under the weight of tedious decisions but not to drive a “lights out” supply chain. We need to keep the lights on, because the most important decisions still require judgement. There are ample situations where the tradeoffs are complex and unclear, the outcomes risky. It is in these situations where people matter the most, and where we most need the ability to ask the right questions, pay attention to the right things, and exercise the right judgement. And these are all capabilities very human in nature.

Mitchell-Guthrie has an MBA from the Kenan-Flagler Business School of the University of North Carolina at Chapel Hill, where she also received her BA in political science as a Morehead Scholar. She has been active in many roles within INFORMS (the Institute for Operations Research and Management Sciences), including serving as the chair and vice chair of the Analytics Certification Board and secretary of the Analytics Society.

 

The post The Promise and Peril of Generative AI for Supply Chains appeared first on Logistics Viewpoints.

source