AI in supply chain: 2025 trends and predictions

1. Dealing with resource constraints

The departure of many production planners from the manufacturing industry means that resources are stretched more than ever, with the remaining workforce dealing with increased responsibilities and added pressure. Although this creates its fair share of challenges for businesses, it also brings opportunities in the form of AI.

For example, the UK housing market could change significantly in 2025 after a government pledge to build more homes. However, instability in the market and a shortage of the planners needed to manufacture the building materials required to build houses and flats poses a challenge. 

By leveraging AI in areas like production planning, reordering and general inventory management, supply chain teams can work faster and more effectively, bridging the gap created by reduced resources and driving stronger outcomes.

2. Focusing on the bigger picture

This one is a common misconception around using AI, particularly when it comes to its implementation in areas like planning and manufacturing. People often assume that production planners need extremely granular focus when leveraging AI in their planning processes — but this can actually be detrimental and hold teams back. 

Higher-level, strategic planning allows for greater agility and adaptability, which are key traits for success in 2025. Expect to see a shift in focus towards prioritizing flexibility, as supply chain leaders look to increase their ability to respond quickly to changing demands and fluctuating market conditions.

3. Generative AI for efficiency

After dominating the headlines since its explosion, excitement around generative AI will begin to settle in 2025 and start to feel more normalized in the workplace. Attention will move away from the idea that generative AI can do everything for you, and instead turn towards more practical applications that can make a real impact in terms of business efficiency and performance.

We expect to see more businesses leveraging this technology to break down complex data, introducing automation into some of their more manual tasks and also asking questions and gaining insights and recommendations on next steps.

In a supply chain context, generative AI’s primary role will be to optimize efficiencies and increase output, helping businesses achieve more with less.

4. A new era for production planners

There’s no denying that AI will continue to reshape the role of production planners in the manufacturing space, so it’s of critical importance that planners familiarize themselves with the capabilities of this technology and become AI-literate. 

With fewer supply chain staff available in the market, leaning on technology is going to become more important than ever. Production planners must embrace AI as a powerful supporting tool in the workplace — and those that resist this shift risk being left behind as the industry evolves.