ChatGPT Turns One
This month, ChatGPT (Chat Generative Pre-Trained Transformer) turns one on November 30th, 2023. It’s a noteworthy date for the AI chatbot. Developed by Open AI as a large language model-based chatbot, the LLM allows end users to generate texts, code, and images. Microsoft invested over $10 billion in the company in 2023 and Bain has forged a partnership with OpenAI. OpenAI, a UK-based AI research laboratory, was founded in 2015 by Sam Altman and Elon Musk, among other notable tech figures.
As of this past June, the chatbot had over 100 million users and 200 plugins. ChatGPT’s creators admit they didn’t anticipate the bot would garner so much viral popularity – in fact, it’s one of the most popular apps out there. Hardly a day passes when there aren’t numerous articles published about ChatGPT as well as broader pieces about generative AI itself. Many of those articles serve as warnings about the dangers of the bot.
But AI, upon which the LLM is based, is not actually new. In fact, AI’s been around since the 1950s. AI goes further back than that, but the first real push to create AI began in the 1950s when the terms artificial intelligence and machine learning were coined. The ChatGPT bot, however, managed to capture the popular imagination for AI. That's raised myriad questions about how this powerful form of technology will potentially impact all of humanity. But here’s the thing: AI has already impacted how we do things, how we interact with one another, and how, for example, we do business. Take supply chain models, a business in which I’ve been a part for most of my professional life, and one that affects nearly every human being on the planet. After all, most of us are consumers of a multitude of products that come from supply chains across the globe.
What is a Supply Chain and How Does AI Affect it?
Put simply, a supply chain consists of various components — raw materials, transportation, manufacturing, goods, etc. — that are connected from the extraction of resources to the doorstep of consumers. Every company is in some way connected to a supply chain and maintains transactional systems of record to ensure supply chains run smoothly. These systems of record document transactions; however, they were never intended to monitor and correct mistakes at scale. In addition, they were never engineered to dynamically think about changeable data or navigate in a real-time environment.
We believe there is a billion-dollar market opportunity for something we call the Enterra System of Intelligence™.The Enterra System of Intelligence™ rests atop the data and process layers within which reside the transaction systems of record. This system of intelligence is able to Sense, Think, Act, and Learn® about the environment in which businesses operate — including the complexities of the supply chain industry. It allows supply chain professionals to analyze data, retrieve reliable recommendations, and make decisions at a velocity unheard before. All of this analysis can be done in real time, too. That means, geopolitical events, such as the invasion of Ukraine by Russia, climate emergencies, inflation, and so forth, can be taken into consideration.
AI in the supply chain and environmental sustainability factors
Although most of us are familiar with Chatbots, such as ChatGPT, the public’s focus has been turned on to other threats raised by LLMs. For example, threats to culture, like how we generate art, write about the world, think about politics, and solve other creative problems. But there is a much more benevolent and beneficial side of AI. AI within the supply chain industry, for example, is helping companies solve environmental sustainability challenges. One such challenge is what supply chain model should be adopted. Two prominent models currently in use are “just-in-time” and “just-in-case” supply chain models. Both models have been used for decades in the industry. The first model is a method in which resources and goods are available right when they are needed. The plus side to this model is reduced inventory and cost savings because less storage space is required. However, the model proved wildly unsuccessful when the global pandemic hit. Resources were locked up in closed factories and ports, meaning companies could not keep up with the demand. As a result, shelves were left empty across the U.S. In response to shortages in products, companies switched to the “just-in-case” model. With this model, inventories are increased, alternative sources of parts are sought, and disruptions are mitigated, which ends up costing companies in the long-term, too. However, the System of Intelligence™ uses human-like reasoning, reliable generative AI, high-dimensional math, and real-time optimization that helps determine the right inventory needs for the supply chain. This means that companies can manage inventory much better. Such tools help industry professionals make better environmental sustainability decisions, too, thus cutting down on needless waste. Long-term aims for protecting the environment can be met now and don’t need to be seen as a distant goal when companies use Enterra® products.
Concluding Thoughts
Amidst all the hype about generative AI, which will only increase on the upcoming one-year anniversary of ChatGPT, it’s worth noting that AI has been part of the supply chain industry for years now. When it comes to augmenting professional expertise and improving supply chain activities, the Enterra System of Intelligence™ system is unique. Implementing Enterra Solutions® products can help solve environmental and optimization challenges now. And that’s all the more reason to celebrate public awareness about generative AI.