Retailers Embrace AI Solutions to Tackle Supply Chain Issues

Retailers are increasingly turning to artificial intelligence (AI) to address ongoing supply chain challenges and improve their fulfilment operations. A recent survey conducted by global technology intelligence firm ABI Research indicates that over 90% of retailers are planning to implement AI solutions for decision support and network optimization.

According to the survey, which was released on October 21, 2025, retailers are focusing on advanced digital solutions and warehouse automation to enhance efficiency. Ryan Wiggin, a Senior Analyst at ABI Research, noted that over the past year, retailers have gradually adopted generative AI applications. Most have initially explored systems such as chatbots and customer support tools. Now, interest is shifting towards more sophisticated AI applications that can automate decision-making processes.

Wiggin highlighted that more than 40% of the surveyed retailers strongly believe that AI agents can effectively manage tasks like adjusting inventory levels, rerouting shipments, and triggering automatic re-orders. These capabilities are seen as essential for navigating the complexities of modern supply chains.

In addition to investments in software and automation, retailers are prioritizing cybersecurity. The survey revealed that over 35% of respondents plan to allocate more than US$50,000 on IT security within the next year. This focus on security has been driven by increasing awareness of cyber threats and the need to comply with regulatory mandates.

Wiggin remarked, “Data privacy concerns and the challenges of upgrading or integrating with legacy systems are significant barriers to enhancing workflows in retail companies.” He emphasized the need for technology providers to offer robust onboarding and continuous support, particularly regarding data management and security.

These insights come from ABI Research’s Supply Chain Survey 2025: Retail and Wholesale report, part of its comprehensive Supply Chain Management Software research service. The firm aims to bridge the gap between technology solution providers and market companies by delivering exclusive research and expert guidance.

For further details on ABI Research and their services, interested parties can reach out at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, or +65.6592.0290 in the Asia-Pacific region, or visit their website at www.abiresearch.com.