AI Adoption in Supply Chain on the Rise; Execs Still Skeptical About ROI

It’s no secret supply chain leaders are diving headfirst into AI integration. But data from West Monroe shows they’re still seeking a strong return on investment. 

“Supply chains are proactively managing disruption, even if they can’t fully control threats like cybersecurity and tariffs. Leaders are responding strategically, leveraging technology, adjusting inventory, and reevaluating suppliers to build resilience, reduce risk, and maintain their competitive edge,” says Brian Pacula, partner in supply chain practice and co-author of the report.

“While companies are overwhelmingly integrating AI into their supply chains, many are still struggling to find meaningful ROI, highlighting a critical gap between adopting technology and effectively using it to drive tangible business value,” adds Jeremy Tancredi, partner in supply chain practice and co-author of the report.

Key takeaways:

• 98% of companies integrated AI into their supply chains in Q1, with 77% zeroing in on inventory management and 54% on demand forecasting.  

• But 36% say proving ROI from AI investments is their biggest hurdle, while 29% struggle to find the right AI tools.  

• AI is the top priority in urgent C-suite discussions for one-third of C-suite leaders. 
• Just 26% say the supply chain has a strategic seat at the table. Another 26% say it’s primarily seen as a cost center.
• Only 10% named talent shortages and workforce gaps as their top priority.
• 72% said the new U.S. administration has improved their supply chain operations.
• 89% of companies made real changes to their supply chain in Q1. Most altered their product mix, sourcing strategies, and transportation routes. Only 11% said they didn’t need to make any big adjustments.