East Asian Companies Pull Ahead on AI Planning Patents, with Trend Prediction a Clear Priority
Digitization in the planning function can lead to tangible business gains, like lower EPS deviation – and companies in East Asia have got the memo. We delve into the details.
The Data
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Of the top ten companies with the most patents relating to the use of AI in planning in our data set, 60% are headquartered in East Asia.
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Looking at the top ten companies with the highest proportion of AI planning (relative to all AI-enabled supply chain patents), 70% are headquartered in East Asia.
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Of the planning patents filed by companies in East Asia, an average of 46.5% relate to trend prediction.
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Companies in East Asia grew inventory by 5.6% (on average) vs 36% (the rest of the companies in our data set) between 2021 and 2024, suggesting a correlation between filing these patents and inventory growth.
Making Planning a Priority
In 2022, a Zero100 survey of senior supply chain executives found that advanced planning investments are more predictive of reliable revenue growth than any other category of digital supply chain investment. And earlier this year, our AI Maturity Survey revealed planning as The Loop function with the highest AI maturity, perceived value, and data quality. On top of that, the Zero100 data science team found that leaders in AI-powered planning are driving more reliable EPS estimates (by 2.6x). In short, prioritizing digital investment in planning means business wins.
But in an environment that is constantly shifting – where labor strikes, increasing sustainability policies, and fast-paced demand spikes and troughs are the norm – there’s only so much you can plan in such a complex world. So, how to optimize? And where to invest?
We zoomed in on the use of digital tools and AI in planning and found that companies headquartered and operating in East Asia are coming out ahead. They lead on the number of patents filed that relate to AI in planning, suggesting a clear prioritization of the digitization of this function.
Of the top ten companies with the most AI planning patents in our data set, 60% are headquartered in East Asia. And looking at patents overall, of the top ten companies with the highest proportion of AI in planning patents, 70% are headquartered in East Asia. Going one layer deeper, looking at East Asian companies in both top tens, an average of 46.5% of AI planning patents relate to trend prediction.
In terms of tangible results, we found a positive relationship between filing more AI planning parents and inventory growth. Companies in East Asia grew inventory by 5.6% (on average) vs 36% for the rest of the companies in our data set between 2021 and 2024.
But what does the digitization of planning look like in practice? And what does this focus on trend prediction offer in terms of business gains?
How Samsung Is Using AI for Planning
Samsung is one company focusing on using AI for trend prediction within the planning function, with 66% of its AI planning patents specifically focused on this process.
One of Samsung’s subsidiaries, Harman’s Digital Transformation Solutions business unit, illuminates this. It has launched ForecastGPT, a predictive analytics platform that enables the forecasting of sales, supply chain, and financial planning.
"In financial planning scenarios, analysts can forecast revenue from multiple streams with precision, identify anomalies, and generate detailed commentary to explain the trends in the data," Nick Parrotta, President, Digital Transformation Solutions and Chief Digital and Information Officer at Harman’s, told The Economic Times.
Also, he continued, the platform could help companies get a deeper understanding of complex data patterns and more accurate forecasting – and works with any data format and source.
The Takeaway
Moving from a reactive to a proactive supply chain requires innovation, as the data on patents here suggests, and those standing still run the risk of falling behind. Look toward what other companies are already doing for inspiration but place it in the context of your current tech landscape, data foundation, and teams. Prioritize by considering the highest impact areas within planning and whether to buy vs build. Our Supply Chain Rewired report delves into more use cases within planning, from trend prediction to autonomous planning to simulation planning.
To see a different data cut or to dig deeper into this topic, reach out to our Head of Research Analytics, Cody Stack, at Cody.Stack@zero100.com.
Methodology
Zero100’s proprietary data and analytics are a combined effort between our data scientists and research analysts. We provide data-first insights matched with our own research-backed points of view and bring this analysis to life via real-world case examples being led by supply chain practitioners today.
For this study, we analyzed 500,000+ patents across 233 global supply chain organizations. For our survey data, respondents were supply chain professionals from 100 global companies.
Further Reading
- Data Insight: Unlocking Planning in Pharma with AI/ML
- The Zero100 Podcast: Planning as the Central Nervous System: Under Armour’s Leila Jalai
- Research Report: Regenerative Business Planning: A Quiet Resilience Revolution