It was just two years ago that generative AI burst into the public eye. Tools like ChatGPT introduced the world to AI that could talk, write, and summarise, sparking curiosity and experimentation across industries. As we look toward AI in supply chains 2025, its potential impact on efficiency and innovation becomes ever more intriguing.
Some supply chain teams ran early pilots. But for most, AI remained on the periphery, not yet a core part of operations.
In 2024, the technology took a big step forward. AI agents emerged, capable of reasoning, planning, and acting across multi-step tasks. But even as the tech matured, adoption lagged. Most organisations weren’t yet ready to operationalise AI at scale.
In 2025, that began to change.
Over the past 12 months, we’ve seen a clear shift: from talk to traction. The conversations have moved beyond “what if?” and into “what next?”
This isn’t about fully autonomous supply chains. But it is about building the right conditions to get there.
Intentional Adoption Is Underway
More supply chain leaders are now treating AI as a strategic priority, not a side project. They’re moving from experimentation to execution, and investing in the building blocks:
- Data and systems readiness
- AI governance frameworks
- Cross-functional teams
- Pilots across planning functions
What’s changed is intent. These aren’t one-off trials; they’re increasingly part of a roadmap.
Pressure Is Building
Several forces are accelerating the pace:
- Cyberattacks at Jaguar Land Rover and M&S exposed critical digital weaknesses and reminded everyone how fragile key systems really can be.
- Labour shortages are pushing planning teams to breaking point. The old ways of managing labour no longer cut it.
- And competitor pressure is real. Major retailers have made bold, public moves to embed AI, raising the stakes for everyone else.
The message to boards is clear: move now, or risk falling behind.
Operating Models Are Being Rethought
AI is no longer a tool to layer on top of existing systems. It’s starting to reshape how supply chains operate.
The key questions have evolved:
- What does an AI-enabled supply chain really look like?
- What roles do people play when AI can coordinate demand, labour, logistics and finance in real time?
- How do we design for speed, adaptability and resilience, not just control?
This feels like the beginning of a new operating model one where AI is embedded, not bolted on.
Agents in the Loop: Why It Matters
2025 also marked the year that AI agents moved from theory to deployment.
These systems are no longer just generating insights they’re taking action: coordinating schedules, running simulations, streamlining workflows, even writing code. And they’re showing up in real operations.
The biggest benefit? Speed to action.
Businesses are using AI to spot disruptions earlier and respond faster. Forecasting isn’t the finish line it’s the starting point for better decisions, made sooner.
Why AI Is Now a Leadership Issue
This year has also made something very clear: technology isn’t the blocker, leadership is.
The real challenges are about vision, clarity, and culture. The most successful organisations have reframed AI not as automation, but as amplification. As one exec put it:
“We’re not replacing experts, we’re giving them the tools to do more, more easily.”
AI-enabled teams are making decisions faster, collaborating more effectively, and scaling capability, not replacing it. That mindset shift is what’s unlocking real business value.
Cyber, Confidence, and the New Risk Landscape
AI is now part of the cyber conversation on both sides of the threat.
- Cybercriminals are already using AI to find and exploit weaknesses faster than most organisations can respond.
- The incidents at M&S and JLR were a wake-up call: digital fragility is now a frontline supply chain risk.
Resilience today demands more than redundancy. It requires digital immunity and that’s forcing a rethink of cyber strategy from the ground up.
The Bottom Line: 2025 Is a Turning Point
Supply chain leaders understand the stakes:
- Rising costs
- Shrinking labour pools
- Higher service expectations
- Escalating digital risk
What’s changed in 2025 is the level of seriousness. The conversation is no longer “Should we explore AI?” but: “How fast can we take advantage of it?”.
Read our CCO’s predictions for AI in supply chain in 2026 here.