Artificial intelligence is quickly becoming a cornerstone of modern supply chain strategy, especially as organizations face growing economic and geopolitical uncertainty.
Half of Supply Chain Leaders Are Piloting Gen AI
According to a recent study by The Hackett Group, nearly 50% of global supply chain leaders are actively experimenting with generative AI (Gen AI) to improve operations. While full-scale implementation is still limited, early efforts are focused primarily on supply chain planning and predictive analytics.
“In today’s volatile market, disruptions can occur overnight due to shifting regulations or geopolitical tensions,” stated Erin Blair, Strategy and Operations Principal at The Hackett Group. “To maintain competitiveness, companies must embed agility and cost-efficiency into their supply chains. AI-driven modernization is at the heart of that transformation.”
AI Tools Paving the Way for Resilience
New tools powered by AI are enabling supply chain teams to achieve higher levels of efficiency and risk management. These include:
- Prescriptive Analytics: Real-time, data-informed decision-making capabilities that help mitigate supply chain disruptions.
- Predictive Models: Forecasting tools to anticipate demand shifts and inventory needs.
- Generative AI: Emerging applications in planning and automation to streamline operations.
Despite the promise, widespread adoption remains in its early stages. Leaders are cautiously optimistic but acknowledge that a lack of skilled talent and data infrastructure still limits progress.
Top Priorities for 2025
The report identifies the three critical goals for supply chain executives heading into 2025:
- Enhancing cost-efficiency in response to inflation and supply disruptions.
- Ensuring product availability amidst unpredictable demand cycles.
- Building agility and resilience to rapidly adapt to global challenges.
One notable concern is talent development. Although upskilling teams in digital technologies is a top initiative, leaders expressed the least confidence in their ability to deliver on this front.
Strategic Recommendations for Supply Chain AI Success
To remain competitive and future-ready, The Hackett Group advises supply chain organizations to focus on five strategic pillars:
- Drive sustainable cost reduction: Cut costs without compromising operational stability.
- Enhance customer-centricity: Align operations with evolving customer expectations.
- Build agile, resilient networks: Fortify supply chains against external shocks.
- Accelerate insight generation: Improve data access and analytics to make faster decisions.
- Deploy AI thoughtfully: Upgrade systems using AI capabilities embedded in modern tech stacks.
The Urgency to Act
Rising costs and constant disruption are pushing supply chain leaders to embrace innovation more aggressively. Those who delay the adoption of AI risk falling behind as competitors leap forward with smarter, more adaptive networks.
As companies continue to explore AI’s potential across critical sectors, some are making significant strides. For instance, SandboxAQ’s $450M investment into quantum-AI innovation exemplifies how advanced technologies are reshaping operational landscapes far beyond traditional supply chains.
In an era where transformation is no longer optional, AI-powered supply chains are not just an advantage—they are a necessity.
