Supply chain execs see opportunity, challenge in AI

A new survey indicates many supply chain executives are using artificial intelligence, but some face limitations.

Four-in-10 (41%) of supply chain executives surveyed for the new Kenco “2025 Supply Chain Innovation” study are making AI a key part of their innovation strategy. Of these, one-third already are leveraging it for data visibility, 29% for quality control and 26% for labor optimization.

However, more than one-in-three (35%) respondents said they are largely prevented from using AI because of company policy. The top two issues respondents hope to address with new innovations (which include but are not limited to AI) this year include inflation (68%) and labor shortages (50%).

Fifty-one percent of respondents with existing innovation budgets saw an increase earmarked for 2025. Among the survey’s other top findings are:

• Respondents looking to adopt physical automation tools offered an essentially three-way tie for which technology will be most popular in the coming year: robotics (43%), sensors and automatic identification (40%) and 3D printing (40%).
• When it comes to choosing a partner for supply chain innovation, 45% of respondents said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
• Only 13% of respondents said their third-party logistics provider (3PL) identified a need for innovation, and just 8% partnered with a 3PL to implement a technology.