By Chris Gaffney, Managing Director of the Georgia Tech Supply Chain and Logistics Institute, Supply Chain Advisor, and former executive at Frito‑Lay, AJC International, and Coca‑Cola, and Michael Barnett, Founder and Principal of Synaptic SC, former global leader of Supply Chain AI at BCG, and former executive at Aera Technology and Koch Industries.

Entering 2026, one thing is clear: staying on the sidelines is no longer a viable option. We both agree that 2025 was the last year when being “behind” on AI adoption could be rationalized. In 2026, leaders cannot stay in the foxhole. They need to move forward, doing so in a way that reduces the risk of failure.

The past two years have been full of promise for AI in supply chain: we have seen impressive pilots, compelling research findings, and no shortage of claims about what agents and large language models can do. At the same time, many supply chain leaders are frustrated; there has been significant activity and investment in centralized capabilities without meaningful results in the supply chain. Too many efforts stall. Too many pilots never scale. Many organizations feel they have kissed a lot of frogs and are still waiting for something that works reliably.

The question for 2026 is no longer whether to engage with AI, but how to do so in a way that consistently delivers results. This is the year to put points on the board through disciplined, repeatable progress rather than moonshots.

Two Principles Separate Progress from Experimentation

Across our work and conversations with supply chain leaders, organizations that are driving tangible results tend to follow two principles, sometimes explicitly, sometimes intuitively:

1. Leverage GenAI Where It Adds Differential Value

Large language models are exceptionally strong at working with language. They summarize, explain, code, and translate intent into logic. This makes them powerful tools for accelerating development, analysis, and communication.

Much of supply chain execution, however, depends on precision. Planning rates, forecasts, production schedules, routing logic, and inventory policies rely on structured data, mathematical relationships, and deterministic logic. In these environments, hallucinations or probabilistic answers are not just inconvenient. They can be operationally disruptive.

Many early failures stem from applying LLMs where deterministic logic is required, rather than using them to support the creation, maintenance, and monitoring of that logic. In practice, GenAI is most effective upstream, helping teams build analytics faster, surface issues earlier, and lower the friction of development and maintenance.

2. Design with People in the Loop

This is not only a philosophical stance. It reflects technical reality. While recent research shows that collections of agents can outperform humans in controlled settings, production supply chains are not laboratories. They are complex, interconnected processes and organizations that operate in a dynamic, ever-changing environment. In contrast to AI that augments workers, fully autonomous systems introduce risks—technical, organizational, and reputational—that erode the incremental value relative to the increased costs to develop and maintain them.

Human-in-the-loop is not a concession. It is a design principle.

From Ideation to Error-Proofed Execution

Most supply chain organizations are not short on AI use cases. What they lack are clear, high‑probability paths to value creation.

A familiar pattern plays out: organizations rush into pilots without a clear view of where AI adds value. Results are mixed and hard to interpret. When early efforts disappoint, leaders become more cautious, not because they doubt AI’s potential, but because they are wary of repeating visible failures.

One executive described this dynamic as being "tired of kissing frogs." After aggressively leaning into new technologies early, the organization became skeptical, insisting on external proof and peer validation before investing further.

The more productive question is no longer "What is the most advanced thing we can try?" but instead: "What can we do today that has a high probability of working, scaling, and building our capabilities?"

How to Put Points on the Board in 2026

Across our experimentation and advisory work, two areas consistently emerge where GenAI is already delivering value.

Enterprise Productivity: The Safest On-Ramp

The most reliable progress comes from improving everyday productivity.

Most organizations take a restrictive approach, limiting AI access to a small group or tightly controlled pilots led by centralized technical teams, only to realize they were slowing learning and adoption across the enterprise. In one large retailer, leadership initially centralized AI use due to security and governance concerns. Over time, they shifted to enterprise licensing that centralized risk management while allowing broader employee access within guardrails.

The result was not chaos or "shadow IT." It was productivity: meeting summaries, analysis support, presentation development, and faster access to internal knowledge.

These gains may sound modest, but they matter. Giving people five to ten hours per week back changes how employees experience AI. It becomes a tool that helps them do their jobs better, not a signal that their jobs are being automated away.

For leaders, this means actively enabling access to approved tools, supporting skill development, and encouraging experimentation within clear boundaries. This is one of the most straightforward ways to quickly and visibly put points on the board.

Decision Intelligence: Rewiring the Operating Model

Advanced analytics, optimization, and planning systems predate GenAI. What is new is not the math, but rather the speed, accessibility, and maintainability of building and sustaining advanced analytics solutions.

GenAI acts as an accelerator. It reduces the friction of writing code, standing up, monitoring logic, and explaining results. It brings advanced capabilities closer to the business, rather than confining them to a small central team.

A concrete example comes from production planning. Planned production rates are often set during commissioning or early ramp up and then reused for long periods. Over time, changes in labor mix, maintenance practices, or product complexity cause actual throughput to drift. Plans continue to run, but they quietly degrade.

In effective implementations, GenAI does not update the planning system autonomously. Instead, it operates adjacent to it. It helps teams build monitoring logic that compares planned versus actual performance, surfaces statistically meaningful drift, and generates candidate adjustments with supporting context. Planners review and approve changes before they are re-ingested into the APS.

The system of record remains intact. Human accountability is preserved. What improves is the speed, frequency, and quality of assumption hygiene, enabling earlier detection of problems before they cascade into service, cost, or inventory issues.

Avoid Kissing Frogs: Technology and Organizational Choices

Many organizations “kiss frogs” not because the new technology is flawed, but because they are not ready to adopt it.

To avoid this fate, successful efforts often include the following elements:

1. Leverage existing, approved AI platforms rather than onboarding new technologies
   • Accelerates time to value
   • Helps define the true limitations of your current technology stack to guide future platform selection
2. Maximize the value of current systems (e.g., APS, production scheduling software) instead of chasing new applications
   • Existing, complex supply chain software often under-delivers on its promised value
   • AI agents and workflows are highly effective at improving master data quality and ensuring planning parameters are accurate
3. Foster ideation and solution development with internal teams, while using third parties to accelerate capability building—not to replace it
4. Make progress visible by sharing early wins, curating employee-driven experiments, and scaling what works

Change management is not an option; it must be designed into every aspect of an AI program from the start. When organizations invest heavily in advanced capabilities at the top while doing little to equip everyday employees, the message received is often, "This is happening to you, not for you." That perception creates resistance, fear, and organizational drag.

Effective leaders communicate a clear vision for how new capabilities will augment, not replace, their teams, so that scarce human intellect is applied where it adds the most value.

Key Actions to Win in 2026

The principles are clear. The opportunity is real. The question now is execution.

If 2026 is the year to put points on the board, supply chain leaders must move from experimentation to engineered progress. That begins with clarity.

1. Define a Multi-Year AI Value Vision

Develop a concrete view of how AI will create value in your organization over the next several years. Not a collection of pilots. Not a list of tools. A clear articulation of where and how AI will improve productivity, strengthen decision quality, and increase operational reliability.

That vision should:

• Clarify where AI will augment human decision-making versus automate tasks
• Identify the business outcomes you expect to improve (service, cost, inventory, resilience, productivity)
• Guide decisions on organizational design, platform selection, governance, and partnerships
• Establish sequencing - what you will enable now versus what must wait

Without a defined direction, AI efforts default to software deployment. With it, technology becomes a lever for measurable operational improvement.

2. Enable Broad, Responsible Access

Capability development accelerates when access is not unnecessarily constrained. Ensure that team members at every level - from executives to frontline planners - have access to approved enterprise AI tools and agent-building capabilities, along with practical training tied to real workflows.

Effective enablement includes:

• Enterprise licensing and governance that remove friction while protecting data
• Hands-on guidance tied directly to day-to-day supply chain work - reporting, master data cleanup, production monitoring, inventory analysis, schedule validation
• Clear operating guardrails that define appropriate data use and boundaries
• Leadership support for responsible experimentation

Restricting access may feel prudent. In practice, it slows learning and reinforces dependency on centralized teams. Broad enablement builds capability across the organization.

3. Create Local Ideation and Scaling Mechanisms

Durable progress does not originate only from centralized programs. It often begins at the front line.
Leaders should create simple, visible mechanisms for individuals and teams to experiment within defined guardrails and to share what they are building.

This includes:

• Recurring forums or showcases where teams present working solutions
• Curated libraries of effective prompts, workflows, and agents
• Clear channels for submitting ideas and documenting results

Most importantly, organizations must be able to move from local experimentation to scaled adoption. That requires:

• Identifying the strongest minimum viable solutions emerging from the field
• Refining and hardening them into repeatable workflows
• Productizing and scaling what demonstrably improves performance

The objective is not activity. It is building capability that compounds over time.

These steps are straightforward. They require intention and follow-through. That is what separates durable capability from scattered experimentation.

It is not too late to lead. The last several years have provided lessons - technical, organizational, and cultural. Leaders who absorb those lessons and design deliberately for scale will build AI capabilities that strengthen over time.

That kind of progress is not flashy. It does not depend on moonshots or fully autonomous systems operating in isolation. It depends on clarity, access, discipline, and accountability.

In 2026, novelty will attract attention. Durability will create an advantage.

The organizations that win will not be the ones with the most pilots. They will be the ones who consistently translate AI into measurable operational improvement.

This is the year to move from experimentation to engineered results.

Put points on the board.