**London**: A study by The Hackett Group reveals that around 50% of supply chain leaders are experimenting with generative AI. While many face challenges like economic uncertainty, successful implementation is identified as crucial for maintaining agility and competitiveness in the evolving landscape by 2025.
A recent study by The Hackett Group has highlighted the growing importance of generative artificial intelligence (Gen AI) in the supply chain sector. According to their 2025 Key Issues Study, around 50% of supply chain leaders are currently testing Gen AI applications, though full-scale deployment remains limited. This transformation is seen as necessary to navigate the challenges posed by economic uncertainty and rising cost pressures.
Erin Blair, principal of Strategy and Operations at The Hackett Group, noted the unprecedented volatility affecting supply chains due to shifting policies and geopolitical issues. “To stay competitive, organizations must build agility into their supply chains while maintaining cost-efficiency and customer satisfaction,” she stated, emphasising the role of AI-powered digital transformation in achieving these goals.
The study revealed that while many supply chain professionals are exploring AI-driven tools such as predictive analytics and data visualisation, significant challenges remain. Economic uncertainty is a top concern for 75% of the respondents, highlighting the need for improved cost-efficiency and supply chain agility as critical priorities for the year 2025.
Despite the potential benefits of AI, talent and skill development is identified as a key initiative for supply chain leaders aiming to enhance business agility. However, this is also an area where leaders express a lack of confidence in their ability to achieve results.
The Hackett Group has outlined five areas of focus for supply chain executives to remain competitive in 2025:
- Driving sustainable cost reductions while enhancing supply chain resilience.
- Prioritising customer needs through innovation to sustain demand.
- Building operational agility and resilience to maintain supply continuity.
- Investing in the rapid creation of actionable insights from data.
- Thoughtful deployment of digital transformation, particularly in AI applications.
The report suggests that AI-driven transformation is no longer optional for supply chain teams; it has become a competitive necessity. Those yet to integrate Gen AI must rapidly evaluate how to apply this technology to stay ahead in a continually evolving market.
Source: Noah Wire Services
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