Approximately 50% of supply chain leaders are testing gen AI, yet full-scale deployment remains nascent.
The Hackett Group, Inc., a generative artificial intelligence (genAI) strategic consultancy and executive advisory firm, released findings from its 2025 Key Issues Study, revealing how AI is poised to reshape supply chains.
Approximately 50% of supply chain leaders are testing gen AI, yet full-scale deployment remains nascent. As economic uncertainty and cost pressures mount, supply chain executives must act now to accelerate AI-driven transformation and remain competitive.
“Supply chain leaders are facing a period of unprecedented volatility, where shifting policies and geopolitical uncertainty can disrupt operations overnight,” said Erin Blair, Principal, Strategy and Operations at The Hackett Group.
“To stay competitive, organisations must build agility into their supply chains while maintaining cost-efficiency and customer satisfaction. AI-powered digital transformation will be key to navigating these challenges and ensuring long-term resilience.”
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Supply chain organisations are early in the AI journey
Supply chain leaders report increasing interest in AI-powered tools like supply chain intelligence, predictive analytics, data visualization, and genAI to improve resilience and efficiency. The study found:
- Prescriptive AI is emerging as a game changer in the supply chain, providing real-time, data-driven decision-making capabilities to mitigate risks.
- Approximately 50% of supply chain teams are piloting genAI, but widespread adoption is limited so far; planning is currently the top area of genAI deployment.
- Economic uncertainty is a top concern for 75% of supply chain leaders, increasing pressure to improve cost-efficiency, assure product availability and build supply chain agility/resilience – their top three priorities for 2025.
- Talent/skill development is the top reported initiative for supply chain leaders in 2025, as a key factor in supporting business agility. However, it’s the initiative they currently feel least confident in their ability to achieve.
Supply chain’s mandate for 2025
Digital transformation, including the use of AI, will aid in delivering against supply chain challenges and economic and geopolitical uncertainty. To enable growth and remain competitive in 2025, The Hackett Group recommends supply chain leaders focus on these five critical areas:
- Drive sustainable cost reduction – optimise costs while strengthening supply chain resilience.
- Focus on customer needs – ensure satisfaction and innovate to sustain demand amid uncertainty.
- Build supply chain agility and resilience – optimize operations to maintain supply continuity and service levels.
- Invest in the rapid creation of insights – improving data quality, access and the speed at which you can turn data into actionable insights.
- Invest in digital transformation wisely – deploy thoughtful applications of AI; leverage vendors’ embedded genAI capabilities as part of technology upgrades.
With rising cost pressures and increasing demand for supply chain agility, AI-driven transformation is no longer optional – it’s a competitive necessity. Supply chain teams that have yet to integrate genAI into their work must quickly assess where they can apply this transformational technology to remain competitive.
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