• by Ray Schultz , Columnist, April 23, 2025

Businesses are using generative AI not only for email content creation but for supply-chain management. Yet they face many hurdles in the latter area, judging by a study from Logility.

For instance, 52% of the firms surveyed cite legacy/on-premise solutions as significant obstacles to making the supply chain work. And 53% see talent retention as a primary concern.

In addition, 57% see data readiness as an obstacle to use of modern technologies like generative AI (GenAI). And 55% say use of Excel spreadsheets hampers supply chain performance. 

Another 31% say the lack of budget is a hindrance when adopting new technologies. And they are unsure of where to invest and what to expect. 

Only 33% are using supply chain-specific solutions. The barriers include cost, data security, and trust in the technology.

On a more positive note, 38% of those with on-premise systems are moving to the cloud within the next 12 months. And 55% of those doing so believe it will improve scalability and speed, while 39% expect it will allow for better access to the latest features and innovations 

Moreover, 49% believe GenAI can help mitigate labor shortages. And 22% believe it will accelerate onboarding.

But all this depends on the location. Among U.S. companies, 56% see digital transformation as a way to improving operational performance, versus 63% in the U.K. Similarly, while 53% of U.S. respondents believe digital improvement will further talent retention, that again goes to 63% in the U.K.

Logility surveyed 500 decision makers responsible for their organization’s supply chains.