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The global generative AI in supply chain market size is calculated at USD 640.04 million in 2024, grew to USD 932.02 million in 2025, and is predicted to hit around USD 27,441.93 million by 2034, expanding at a CAGR of 45.62% between 2024 and 2034.
The global generative AI in supply chain market size is worth around USD 640.04 million in 2024 and is anticipated to reach around USD 27,441.93 million by 2034, growing at a CAGR of 45.62% over the forecast period from 2024 to 2034.
Generative AI is the technology that is used by many industries for the development of their services and products. Supply chain management is also one of the major parts of the industry which is using generative AI for the development and effective workflow of the process. Generative AI can be used for a log time to improve the efficiency and productivity of the modern supply chain. Generative AI helps to improve the services of the supply chain by managing inventory, smart logistics, and manufacturing.
Generative AI could help to maintain the supply chain effectively by data analysis, and having a record of purchase orders, invoices, shipment data, etc. all this information helps to provide accurate data to the manufacturer or suppliers and showcases the areas which need to be improved. Generative AI is useful for better productivity and a great tool for the maintenance of supply chains and logistics in industries.
Generative AI is currently supporting several industries to grow their products and services. Generative AI enables higher productivity through predictive analysis and data prediction by algorithmic support. The supply chain is the process where the distribution, production, and delivery of goods and services are managed by the complex process of the organizations. There are several various flows of supply chain management including manufacturing, logistics, and customer services. The supply chain had a vast amount of dataset, generative AI could manage that colossal dataset, and it can produce insights and solutions.
Generative AI is capable of helping industries by maintaining the supply chain management process by reducing the cost of acquisition and improving customer satisfaction. Generative AI in the supply chain minimizes the challenges that come with customer satisfaction, increasing need for sustainable practices, and rapid market fluctuation. Generative AI enhances the decision-making process in supply chain management. Generative AI has the power to increase efficiency, transparency, and help organizations. All these factors collectively act as growth factors for the market’s expansion.
The supply chain is a major part of the development of the flow of industries. Predictive analysis helps to manage the inventory level in the organization. It will improve the decision-making process and show accurate insights into the organization. All these factors contribute to the demand growth of generative AI in supply chain market.
| Report Coverage | Details |
| Market Size in 2024 | USD 640.04 Million |
| Market Size by 2034 | USD 27,441.93 Million |
| Growth Rate from 2024 to 2034 | CAGR of 45.62% |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2023 |
| Forecast Period | 2024 to 2034 |
| Segments Covered | By Deployment Mode and By End-User |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Demand for efficient and cost-effective advanced solutions
The supply chain benefits from the usage of almost real-time data offered by artificial intelligence platforms. It improves efficiency by reducing waste and saving time and money. Additionally, generative AI solutions enable companies to easily respond by providing real-time data on the location and status of their goods. Because of this data, businesses can make decisions right away rather than waiting until the end of the whole business year. Supply chain scheduling is crucial for arranging product deliveries on specific days and hours. Similar to this, supply chain analytics insights make it far simpler to assist organizations in making wise judgments. Considering the proven benefits of generative AI for cost-effectiveness and efficiency, the demand for such solutions from various industries in order to manage supply chain is observed to grow. This element will pose as a driver for the market’s growth.
Inadequate quality of data
One of the biggest issues with integrating generative AI into a supply chain is that computer algorithms may learn and make errors by generating inadequate quality data. If an algorithm was trained on inaccurate data, it might not be able to detect issues with its analysis. Applying an algorithm that was developed using data from one time period to data from another era may result in incorrect results. The reason for this is that those two time periods differ from one another. This can result in pseudo-outcomes that can differ from the required results. Thus, the inadequate quality of data offered by generative AI platforms is observed to pose as a major restraint for the market’s growth.
Demand for automated operations
By accurately forecasting consumer behavior, generative artificial intelligence solutions in the supply chain reduce the time spent on customer care and assistance. By automating operations that were previously done manually, it can also boost efficiency at the supply chain centers. For instance, a firm can predict the pattern of trends in the market by using generative AI algorithms, hereby, they can predict consumer’s next order patterns to make accurate analysis for supply forecasting. As a result, firms are able to plan more effectively and prevent under or overstocking of inventory.
Additionally, it implies that businesses will be better able to predict expenses and inventory levels, which enables them to cut expenditures on labor or storage while also enhancing customer service. Multiple industries across the globe are observed to face labor shortages in the upcoming period. In such a situation, the demand for automated operations will subsequently grow. This is observed to boost the penetration of generative AI solutions by offering opportunities for the market to grow.
The cloud-based segment dominated the market with the largest market share in 2023. The segment's growth is attributed to the increased use of automated data storage solutions in supply chain management. Cloud technology is mainly used for data storage by various industries. Cloud technology gives access to the data by the remote server. The supply chain entities are required to collect a large amount of data routine, which is manually difficult. Cloud technology helps enormously to manage data efficiently. There are some of the cloud computing services which are used by the supply chain are software-as-a-service, infrastructure-as-a-service, and platform-as-a-service.
Cloud computing is also useful in automating logistics tasks within the supply chain. Cloud computing can be used in managing and prioritizing new orders, it will automatically generate shipping routes to minimize delays in delivery, and it will fill invoices, bills, and documents automatically. All these factors contribute to the growth of the segment.
The retail segment dominated the market with the highest revenue in 2023. The segment is expected to generate noticeable revenue during the forecast period. Retail is the major and one of the most dominant industries in the supply chain market across the globe. Using generative AI in the retail industry is boosting customer experience and satisfaction. The retail industry is one of the largest sectors in terms of the usage of the supply chain due to its large amount of inventory, production, and distribution requirements. Using generative AI in the retail industry enhances the workflow and reduces the time and cost of delivery. Through the predictive analysis and decision-making process by the generative AI, it will make the flow of the supply chain more convenient from production to distribution for the retail industry.
The healthcare segment is expected to be the most attractive segment of the market. The healthcare industry shows an enormous demand for automated and advanced solutions to manage the inventory, storage of medical equipment and to track other logistic activities in the industry.
North America dominated the market with the largest market size in 2023, the region is expected to continue to dominate the market throughout the forecast period. The growth of the market in this region is attributed to the rising industrial infrastructure in the region. Increasing industrial development needs strong supply chain management for better workflow. Though the region is highly anticipated the adoption of technology in every sector. Due to this factor, these regions gain the maximum share in the growth of generative AI in the supply chain market.
Asia Pacific is expected to increase its market share during the anticipated timeframe. The growth of the region is attributed to the increasing regulatory support for the development of several industrial infrastructures. Emerging countries like India, China, and Japan anticipated the higher demand and growth of generative AI technology in the supply chain management of industries for smooth workflow and better productivity. These would be the contributing factor for the higher growth of generative AI in the supply chain market in the region.
According to the Asian Development Bank, the Indo-Pacific framework works to address the supply chain challenge and boost the growth of the Asia-Pacific region. Reliability of global supply chains had been labored by shocks, Russia’s takeover of Ukraine, the pandemic, and the constant deterioration of multilateral trade relations. Such steps by the organization are observed to deploy more effective measures to improve the supply chain.
Segments Covered in the Report
By Deployment Mode
By End-User
By Geography
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