Sales and Fulfillment
How AI is revolutionising supply chain management: Trends to watch in 2025
The supply chain industry stands on the cusp of a transformative revolution. With artificial intelligence in supply chain processes, automation and advanced data analytics are now core drivers of change, rapidly transforming the landscape.
This article explores how cutting-edge AI technologies are revolutionising supply chain management.
Supply chain technology trends
As businesses embrace AI-driven supply chain technology trends, there are several factors to consider. To future-proof your business, get ahead of the curve. Harness these key trends for growth and resilience in 2025 and beyond:
Generative AI: Transforming decision-making and process optimisation
Generative AI in supply chain management is set to transform by generating new data and insights from existing patterns. It enhances inventory management by accurately predicting needs and maintaining optimal stock levels. By simulating scenarios it improves demand forecasting and adjusts production schedules. Additionally, generative AI optimises logistics networks, reducing costs and improving delivery times. About 40% of supply chain organisations have adopted generative AI for knowledge management, enabling more efficient warehouse and materials handling. This has led to cost reductions and productivity gains of up to 30%.
Predictive analytics: Staying ahead of disruptions
In 2025, predictive analytics is set to become even more essential in supply chain management, helping businesses mitigate risks and plan proactively. By utilising machine learning algorithms and big data, companies can anticipate disruptions by analysing factors like weather patterns, geopolitical events, and supplier performance. Predictive maintenance, powered by sensor data, allows businesses to forecast equipment failures, reducing downtime and ensuring smooth operations. Advanced analytics will enhance demand planning, enabling businesses to track market trends and adjust strategies in real time for better decision-making.
AI-powered supply chain risk management
AI-powered supply chain risk management is becoming more proactive and data-driven. Businesses use AI for real-time monitoring, tracking activities, detecting vulnerabilities, and implementing corrective actions. AI enhances supplier risk assessments by analysing financial health, geopolitical risks, and compliance, improving supplier reliability. As supply chains modernise, AI also helps identify and mitigate cybersecurity threats early, preventing disruptions. This approach enables businesses to remain resilient and adaptable in a rapidly evolving and complex supply chain environment.
Autonomous supply chain systems
AI-driven autonomous systems will shape supply chain trends in 2025, using self-learning software, robotics, and drones to enhance efficiency and reduce human intervention. Key applications include AI-powered robots for automated warehousing, improving accuracy and cutting labour costs. Autonomous vehicles and drones optimise last-mile delivery, reducing delivery times and costs.
AI-driven dynamic pricing models adjust strategies based on market conditions, competitor behaviour, and customer demand, helping businesses stay competitive and responsive to changing market dynamics.
Leveraging AI to overcome ESG and Scope 3 challenges
In 2025, the focus on ESG and Scope 3 compliance intensifies, with AI emerging as a key tool for meeting these demands. AI aids in data collection and validation, ensuring compliance with regulations like CBAM and CSDDD. It enables real-time monitoring to identify risks related to human rights, emissions, and social factors. Additionally, AI’s predictive analytics mitigate ESG risks, support resilience amid changing regulations, and optimise circular economy initiatives, helping businesses navigate a complex regulatory landscape.
Real-time supply chain visibility
AI-powered real-time supply chain visibility is becoming essential for effective operations. Advanced tools offer a centralised view, allowing businesses to track shipments with accurate ETAs, improving customer satisfaction. AI dynamically updates inventory levels, preventing stockouts and overstocking, optimising working capital. It also enhances communication and collaboration among stakeholders, ensuring better coordination. This integrated visibility enables businesses to respond quickly to disruptions, optimise operations, and consistently meet customer demands in an increasingly fast-paced market.
Tackling resource constraints
AI is helping supply chain management address resource challenges expected to intensify in 2025, driven by an ageing workforce and post-pandemic pressures, by enhancing productivity and strengthening resilience. It optimises resource planning, production schedules, and workflows, improving operational efficiency. By forecasting demand and identifying inefficiencies, AI streamlines operations and reduces reliance on human planners. Additionally, predictive analytics enable better resource allocation, helping businesses meet rising demand while minimising workforce strain. This approach ensures supply chains remain agile, responsive, and adaptable to changing market conditions.
Preparing for 2025 and beyond
To prepare for the future, businesses must focus on integrating AI-driven technologies while ensuring high-quality data for accurate insights. Scalable AI solutions are essential for growing needs, and investing in AI training is key to maximising technology potential. Ethical AI practices must align with guidelines and regulations. In tandem with these considerations, adopting technologies like blockchain, 5G, IoT, and robotics will enhance supply chain transparency, efficiency, and resilience. By focusing on these factors, businesses can build agile, efficient, and future-ready supply chains.
How can Infosys BPM help you leverage AI in supply chain management?
Unlock growth, enhance productivity, and safeguard against disruptions with sales and fulfilment solutions from Infosys BPM. Our AI in supply chain management, combined with deep BPM expertise, aligns your sales and supply chain strategies for a future-ready, high-performance business. GenAI-powered interactions, autonomous workflows, and data-driven operations help you deliver hyper-personalised experiences, boost productivity, and improve revenue.
