How AI can deliver results in the supply chain
AI is becoming an important ingredient for most software solutions, but is it really going to save companies from the vagaries of infrastructure decay and ongoing congestion costs?
01 August 2025
The global AI in supply chain market is projected to reach $9.94bn in 2025, predicts Precedence Research, and $192.5bn by 2034, at a CAGR of 39%. Automation, real-time monitoring, and demand forecasting are some of the biggest drivers of this growth, with AI-powered robotics, risk mitigation, hyper-personalisation tools and digital twins being used in supply chain optimisation.
Organisations are also investigating the potential of AI to improve distribution times and manage delivery timelines, with North America currently leading in adoption and innovation. In a study published by Frontiers, AI in the supply chain can lead to reductions of up to 50% in forecasting errors and 30% in operational costs, while potentially introducing a 20% decrease in inventory holdings and a 40% improvement in warehouse operations and labour management.
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