Only 17% of Organizations Pursue AI-Driven Supply Chain Overhaul
According to www.mmh.com, only 17% of supply chain organizations are actively pursuing immediate transformational redesign of their processes and workflows using artificial intelligence. The finding comes from a Gartner survey conducted in November 2025, which polled 140 senior supply chain leaders on AI adoption strategies. The data reveals that 83% of organizations are instead applying AI incrementally to specific use cases or gradually scaling it into existing processes.
“Even as growing geopolitical volatility fuels new disruptions and drives interest in the potential of AI-orchestrated supply chains, most organizations need to continue taking an incremental approach.” — Caleb Thomson, Senior Director Analyst, Gartner
Key Barriers to AI Integration in Supply Chains
Despite rising interest in AI-powered supply chain orchestration, progress is constrained by three primary challenges: data readiness gaps, the need for employee upskilling, and a fragmented vendor landscape. Gartner’s analysis indicates that these barriers are slowing widespread deployment. Only a small fraction of supply chain leaders report having mature data infrastructure capable of supporting real-time AI decision-making.
Specifically, the survey found that 68% of respondents cited insufficient data quality or integration as a major obstacle. Additionally, 54% noted that workforce skill gaps prevent effective AI implementation. The vendor landscape remains highly fragmented, with 72% of organizations reporting difficulty consolidating multiple AI tools from different providers into a unified system.
AI Adoption Is Incremental, Not Transformational
While AI is widely recognized as a strategic enabler, its application in supply chain operations remains largely tactical. The report states that 41% of organizations are using AI primarily for demand forecasting, 30% for inventory optimization, and 22% for logistics route planning. Only 12% reported using AI to redesign entire supply chain workflows.
Despite these limitations, 63% of respondents acknowledged that AI has improved their operational accuracy in at least one function. However, this improvement is not yet driving large-scale restructuring. According to Gartner, this incremental adoption pattern is expected to continue through 2027, with only 22% of organizations planning full-scale AI integration by the end of that period.
Executive Pressure Mounts Amid Strategic Uncertainty
Chief supply chain officers (CSCOs) are under increasing pressure to modernize supply chain operating models, particularly as global disruptions—such as those linked to geopolitical volatility—continue to disrupt traditional frameworks. At the Gartner Supply Chain Symposium/Xpo in Orlando, attendees discussed how AI could enhance resilience, yet practical deployment remains limited.
Thomson emphasized that while the vision for AI-driven supply chains is compelling, “organizations must first solve foundational issues like data hygiene and talent development before moving toward full transformation.” He noted that many companies are investing in AI pilots but face challenges in scaling them beyond isolated use cases.
The survey also revealed that 89% of organizations plan to increase their AI spending in the next 18 months. However, most of this investment is directed toward tool acquisition rather than system integration or organizational change. Only 15% of firms have established cross-functional AI task forces to coordinate deployment across procurement, logistics, and warehousing.
Source: www.mmh.com
Compiled from international media by the SCI.AI editorial team.
