Majority of Businesses Pour Resources into AI Yet Report Limited Success

Companies are increasingly turning to AI to tackle challenges like inflation and trade disruptions, but many face common hurdles: a shortage of skilled workers, budget constraints, and unreliable data. This insight comes from RELEX Solutions’ latest report titled “State of Supply Chain 2025: Balancing Inflation, Investment & Innovation.”

The study gathered insights from over 500 leaders in retail, consumer packaged goods (CPG), and wholesale across seven nations. It revealed that while 60% of businesses are keen on adopting AI and automation technologies, nearly half admit they lack the necessary expertise. Additionally, 43% cite financial limitations as a significant obstacle, while 39% struggle with poor data quality.

Inflation is reshaping business strategies. Approximately one-third of retailers are either adjusting their pricing or refining their operations. Interestingly, 59% are increasing their private label offerings as consumers seek more affordable choices. In the food sector specifically, around 70% rely heavily on discounts to attract buyers while about 40% introduce value-oriented products.Earlier sections of the same report highlighted that a ample number—60%—of companies are revamping their supply chains due to concerns over fluctuating demand and trade uncertainties.

Dr.Madhav Durbha from RELEX Solutions noted that “Supply chain leaders today face a unique challenge; they need to innovate through technology while also responding to economic pressures.” He emphasized that the gap between what AI can achieve and its actual application presents both significant risks and opportunities for conversion within supply chains.When it comes to tech investments, Generative AI leads at 59%, followed by Predictive AI at 43%, with cloud-based systems coming in at 34%. Most organizations allocate between 5% and 20% of their tech budgets specifically for AI initiatives.

Durbha further remarked on how businesses must adapt flexible supply chain strategies amid economic fluctuations and changing consumer preferences. “Those who successfully bridge the divide between AI’s capabilities and real-world application will find themselves ahead in competition,” he said. conversely, those who fall behind may find it challenging to keep up with industry demands.

as companies navigate these turbulent times filled with inflationary pressures and evolving market dynamics, leveraging technology effectively could be key in maintaining competitiveness.