GenAI adoption in Asia's supply chains remains low at 7%

Transformation Insider's November edition offers insights into trends affecting supply chain dynamics, customer growth, and workplace transformation, emphasising the role of generative AI (GenAI).

Atul Chandna, EY Asia-Pacific Supply Chain Leader, highlighted the significant potential of GenAI in transforming supply chains, although successful adoption remains low. "GenAI is poised to transform supply chains, yet most companies are falling short on implementation. Despite 73% of executives planning to adopt GenAI, only 7% have successfully integrated it. The shift from traditional AI to GenAI promises demand forecasting and real-time disruption solutions, but many projects falter due to complex rollout challenges," he stated. The benefits of a fully autonomous supply chain extend to operational advantages, marking a growing divide between market leaders and laggards. "Achieving a fully autonomous supply chain requires committed, accelerated investment in GenAI, as early adopters are seeing substantial operational advantages. The gap between leaders and laggards will only widen, impacting efficiency and competitiveness," Chandna concluded.

The subscription economy in Asia is witnessing resilience despite consumer fatigue, as noted by Erik Almadrones, EY Asia-Pacific Consulting Customer & Growth Leader. "The subscription economy remains strong in Asia despite consumer fatigue. Success hinges on delivering clear value, flexibility, and personalization. With 81% of consumers in India and Southeast Asia open to more subscriptions if centralized, businesses must offer distinctive benefits and transparency in pricing," said Almadrones. The shift towards customization and AI-driven personalization is particularly impactful for high-value items. "Customizable plans, exclusive incentives, and AI-driven personalization are reshaping the market, especially for high-value items," he added. The subscription model is outpacing traditional revenue streams due to its alignment with consumer needs for flexibility and affordability.

Shinichiro Uzawa, EY Asia-Pacific People Consulting Leader, discussed the role of GenAI in the workplace, highlighting a sharp increase in its adoption and its implications for employee retention. "Generative AI usage in the workplace has jumped from 22% to 75% since 2023, driving productivity gains and fostering skills development. Despite this growth, employee quit intent has risen by 4%, driven by demands for tailored rewards and flexible, growth-oriented roles. As only 30% of organizations have achieved a 'Talent Advantage', there is a strong need for strategic alignment across GenAI, culture, and rewards to retain talent and strengthen workforce resilience," Uzawa commented.

Japan's luxury sector is incorporating GenAI to refine and personalise client experiences rapidly. This marks a shift from traditional reliance on sales associates towards AI applications in customer relationship management (CRM), improving both sales training and client interaction processes.

EY's Responsible AI Principles underscore ethical AI practices, focusing on accountability, data protection, reliability, and more. These principles are aligned with international standards such as NIST, ISO, OECD, and the EU, reflecting EY's commitment to ethical AI governance. The principles are designed to foster trust, mitigate bias, and enhance clarity across AI-utilised solutions.