Survey: Supply chain AI implementation faces challenges
Lack of talent and cost pressures could be impacting how retailers implement artificial intelligence tools.
According to the second annual “State of Supply Chain 2025: Balancing Inflation, Investment & Innovation” report from supply chain planning firm Relex Solutions, 60% of surveyed companies are prioritizing AI and automation investments, but nearly half (44%) can't find the specialized talent needed to implement these technologies. Companies also say they are struggling with budget constraints that limit their ability to scale AI initiatives (43%), as well as poor data quality (39%).
A majority (60%) of companies say they are “fundamentally restructuring” their supply chains, with 52% citing demand volatility as their primary challenge, and 47% concerned about tariff uncertainty and trade disruptions.
Generative AI (59%), Predictive AI (43%) and cloud-native solutions (34%) are the top technology investment priorities, according to the survey, with most companies allocating between 5-20% of their technology budgets to AI-driven solutions despite market volatility.
“Today's supply chain leaders face a dual challenge – they must innovate through technology while adapting to economic pressures," said Dr. Madhav Durbha, group VP of manufacturing industry strategy at Relex Solutions. "The gap between AI's potential and its practical implementation represents both the greatest risk and opportunity in supply chain transformation today."
Other supply chain findings from the survey include the following:
- Inflation is reshaping retail strategies: Nearly a third (31%) of retailers are optimizing operations and 31% are adjusting pricing to stay competitive.
- Private label expansion has become mainstream: Nearly six-in-10 (59%) retailers are growing their own brand portfolios as consumers seek value.
- Food and beverage manufacturers face margin pressure: More than two-thirds (70%) have increased discounting aggressively, while 40% have introduced value-tier products.
[READ MORE: EXCLUSIVE Q&A: Amazon exec examines next-gen AI in the supply chain]
“As businesses navigate economic volatility and evolving consumer behaviors, the report underscores the importance of flexible supply chain strategies that combine technology investment with operational agility,” added Durbha. “Organizations that can bridge the gap between AI’s potential and practical implementation will gain a competitive edge, while those that lag behind may struggle to keep pace.”
Relex’s survey was conducted by Researchscape on 519 retail, CPG manufacturing, and wholesale leaders globally in January 2025.
