AI in Supply Chain: From Skepticism to Strategic Necessity

In a recent survey – The Supply Chain Tech Stack Report, conducted by Parabola and StartOps in early 2025 on 90 supply chain leaders at leading brands – a revealing statistic stood out: 0% of respondents think AI is overhyped. This unanimous acknowledgment of AI's importance signals a dramatic shift in how brands view artificial intelligence in operations.

Current State of AI Adoption

The 2025 Supply Chain Tech Stack Report reveals widespread AI implementation amongst the respondents:

• 52% are already using AI-powered tools
• 35% are planning to implement AI
• 54% view AI as "essential" to future operations
• Only 14% have no plans to implement AI solutions

The AI Implementation Gap

While the majority of brands cited moving toward AI adoption, there's a notable contrast between current implementation and future opportunities:

• Customer service leads current adoption
• AI/ML for demand forecasting (55%) tops future investment priorities
• Advanced supply chain visibility (53%) follows as a key opportunity
• The shift suggests a move from customer-facing to core operational uses

Understanding Adoption Barriers

Despite clear benefits, implementation challenges remain. As Two Boxes CEO Kyle Bertin notes, "If the false positive here is very costly for brands, and they're afraid of it, that can be a disastrous experience."

The hesitation to embrace AI stems from several key concerns, particularly around accuracy in critical business processes.

Starting Small with AI

Matthew Hertz, CEO of Third Person, advocates for an incremental approach: "I've used Claude to pop in a 3PL agreement and said, 'Can you identify any concerns in this agreement?' And it spit out three or four things that I should challenge them on...and this is all free."

Obvi CEO Ronak Shah adds, "I think using it for any place where there is a repetitive service input has been huge. Even just identifying places that we should improve gives us a lot of ideas — if I can have the brain of 10,000 robots, we can get a lot more ideas coming through."

Looking Ahead: AI's Critical Role

As Paige Zachs, VP of Supply Chain, Ops, and Customer at Coterie warns: "It's one of those technologies that the later you start, the further behind you're gonna be."

While AI adoption is inevitable, Keith Frymark emphasizes an important balance: "The human element will always be there."

Based on a comprehensive survey of 90 supply chain and operations leaders conducted in early 2025 by Parabola and StartOps.

‍