Using Google’s AI called Bard, we asked the question: What supply chain management challenges do pharmacies face?
What we got was the standard fare on how technology helps pharmacies improve efficiency, reduce costs, comply with regulations, and better manage the inventory of drugs on hand. As an example, it stated, “Pharmacies can use technology to carefully track on-hand inventory, ensure they have the most cost-effective purchasing, and to carry the minimum inventory in store that can still meet prescription demand.” That’s true.
Cost pressures were a subcategory in the reply. Here Bard mentioned the rising cost of pharmaceuticals putting pressure on pharmacies’ bottom line. Somewhat true. It isn’t just the rising costs, but also the DIR (direct and indirect remuneration) fees that are pressuring the bottom line. Also contributing are the slim profit margins on generics.
The conclusion is that the pharmaceutical supply chain is a complex and challenging system. That’s true.
From what I have read AI can help physicians make better diagnoses, leading to better outcomes. This will avoid costly medical mistakes, which a recent Wall Street Journal article (April 8–9) pegged at a quarter of a million deaths a year in the United States.
AI isn’t entirely new. The insurance industry has been using AI algorithms in its predictive modeling to set rates for some time now. AI algorithms are also used to decide which ads to deliver to your phone. And AI has been the force behind our Google searches. What’s new is that AI is now generating well-written text on any subject we throw at it.
Bill Gates says he equates AI to the first graphical user interface introduced to the Windows and Macintosh operating systems. We all know the impact this has had on how we use computers. The phase “user friendly” resulted from this.
All that said, generative AI is considered a breakthrough in allowing a search on a topic and getting a well-written response. This is clearly another demonstration of how computers are changing our daily lives. CT
Bill Lockwood is chairman and publisher at ComputerTalk. He can be reached at
wal@computertalk.com.