04/09/2026
Not all AI is built for the same job.
As businesses look at where AI can add value, there’s an important distinction worth understanding:
Horizontal AI vs Vertical AI.
Horizontal AI is general-purpose. It’s designed to work across industries and tasks - drafting, summarising, analysing information and answering questions.
Vertical AI is purpose-built for a specific industry or business function.
Rather than starting with broad knowledge, it is designed around the terminology, data, workflows and operational requirements of a particular environment.
In supply chain, that distinction matters.
Demand forecasting, inventory optimisation, production planning and logistics all involve complex relationships between data, constraints, exceptions and business rules.
The opportunity is not simply to introduce AI into these processes.
It’s to apply AI with the right operational context behind it.
Because knowing what a demand forecast is and understanding what is influencing your demand forecast are two very different things.
As AI becomes more embedded in business operations, perhaps the better question isn't:
“Are we using AI?” It’s: “Are we using the right AI for the job?”