The Hackett Group, Inc., a leading strategic consultancy and executive advisory firm in generative artificial intelligence (Gen AI), has released its 2025 Key Issues Study, uncovering the growing role of AI in transforming supply chain operations. While about 50% of supply chain leaders are piloting Gen AI, widespread enterprise deployment is still in early stages—creating both a challenge and an opportunity for digital transformation. As economic pressures, shifting policies, and geopolitical instability increase the likelihood of operational disruption, supply chain leaders must act decisively to integrate AI technologies and future-proof their organizations.
“To stay competitive, organizations must build agility into their supply chains while maintaining cost-efficiency and customer satisfaction,” said Erin Blair, Principal, Strategy and Operations at The Hackett Group. “AI-powered digital transformation will be key to navigating these challenges and ensuring long-term resilience.”
State of Gen AI Adoption in Supply Chain
The study reveals that while AI interest is high, maturity remains limited:
- 50% of supply chain organizations are experimenting with Gen AI—primarily in planning—but full-scale deployment is still rare.
- Prescriptive AI is emerging as a transformative tool, enabling real-time, data-informed decision-making to proactively mitigate disruptions.
- Top three priorities for 2025:
- Enhancing cost-efficiency
- Ensuring product availability
- Building agility and resilience
However, talent and skill development—deemed essential for agility—remains a significant pain point, with many leaders expressing low confidence in achieving progress in this area.
Strategic Imperatives for Supply Chain Leaders in 2025
To remain competitive and adapt to a volatile environment, The Hackett Group outlines five strategic focus areas:
1. Drive Sustainable Cost Reduction
Use AI to streamline operations and reduce overhead while reinforcing resilience against disruption.
2. Focus on Customer-Centricity
Innovate to meet customer needs even in uncertain times, preserving satisfaction and loyalty.
3. Build Agility and Resilience
Create adaptive supply chains that can quickly respond to change while maintaining high service levels.
4. Accelerate Insight Generation
Invest in data quality, integration, and real-time analytics to support faster, smarter decisions.
5. Invest in Targeted Digital Transformation
Deploy AI tools thoughtfully, leveraging embedded Gen AI features within enterprise software upgrades rather than building from scratch.
A Critical Juncture for AI Adoption
As cost pressures mount and expectations for agility grow, the study stresses that AI-driven transformation is no longer optional. Those who fail to act risk falling behind more adaptive competitors who are already reaping the benefits of intelligent automation.
The Hackett Group’s research suggests that early adopters of Gen AI in supply chains are beginning to realize meaningful value—but broader success will require strategic alignment, cross-functional execution, and sustained talent development.
“The time to act is now,” said Blair. “Gen AI has the potential to shift how supply chains operate—not incrementally, but fundamentally.”
