Generative AI is revolutionizing the way businesses approach customer service and logistics. One of the most sophisticated examples of generative AI is ChatGPT, an advanced language model developed by OpenAI that uses artificial intelligence to generate human-like responses to text input.
Generative AI is a class of AI models that can generate new content, such as text, images, music, and voices, based on patterns learned from large datasets. Generative AI models use deep learning and neural networks – a kind of algorithm modeled after the human brain to recognize patterns and relationships within data and make predictions or decisions based on that information. As a result, they can generate content that is often indistinguishable from content created by humans.
ChatGPT was trained on a massive dataset of over 570GB of text data – a dataset approximately 27 times the size of Wikipedia. This massive amount of data enables ChatGPT to generate human-like responses to a wide range of queries, making it a valuable tool for businesses in logistics and supply chain management.
Authors
Steffen von Karstedt
Solutions Manager
4flow management
Wendelin Gross
Head of
4flow research
Putting ChatGPT to work in supply chain management
One way ChatGPT can be used in logistics and supply chain management is to automate customer service interactions related to order management. This includes tasks such as order tracking, cancellations, and returns. ChatGPT can also be used to automate communication with suppliers, including order placement, delivery scheduling, and invoicing. This can help streamline process and reduce the time and resources required for these tasks.
For example, at 4flow management, we have tested ChatGPT to classify emails from customers. After the essential step of removing any sensitive information that could identify our customers, we asked the software to determine whether messages from carriers and suppliers are related to a pick-up delay or a delivery delay. The goal was to automate the process of filtering customer emails and routing them to the appropriate department or team for resolution. The results show the immense potential of ChatGPT – and by extension generative AI in general – to comprehend and classify communication with impressive accuracy and precision. Overall, this use case demonstrates the potential for machine learning and natural language processing to automate, accelerate and improve the quality of monitoring supply chain operations.
Generative AI brings risks and benefits for businesses
Like many new innovations, generative AI has some drawbacks to consider. For instance, generative AI can reproduce and amplify existing biases in data sets used to train the models – which could lead to biased output that may not be fair or inclusive. As an example, this bias means ChatGPT may prioritize suppliers from certain regions even if they are not the best fit for a business in terms of quality, cost, or lead time. This bias could result in missed opportunities for better suited suppliers in other regions and may also contribute to ethical concerns related to human rights or environmental impact. Additionally, ChatGPT is sometimes unable to check the correctness of its own output, making it necessary for human users to verify results.
To ensure data security, it’s essential to cleanse any data entered into ChatGPT of any sensitive information including confidential information, business names or other identifying details. Employees of OpenAI, the business behind ChatGPT, and even third parties can access input provided by users, which poses a security risk if confidential information are entered into the tool.
Still, ChatGPT is a powerful tool with a variety of benefits in logistics and supply chain management. Generative AI can produce content at a much faster rate than humans, leading to increased productivity and reduced costs. In a survey conducted by 4flow research, we found that 40% of respondents reported saving an hour or more per week thanks to generative AI chat bots – and its time-saving potential grows with each new version of the software. With proper use, generative AI has the potential to revolutionize the logistics and supply chain industry.