The popularity of generative artificial intelligence (AI) solutions started to grow after ChatGPT was released in late 2022, and stakeholders ranging from the boardroom to the end consumer began wondering how AI could help address supply chain complexity and resiliency problems.

“AI is really starting to play an important role in the way supply chains operate,” says Frank P. Crivello, Founder and Chairman of Phoenix Investors. “There are logistics and supply chain teams using AI agents to rebook freight or identify problems that need to be addressed before a disruption happens. It’s still early for AI, but the number of use cases for cutting costs and boosting efficiencies are growing every day.”

However, those are all examples of traditional AI. Traditional AI solutions allow companies to program repeatable tasks and scenarios with minimal variability, such as picking up a tote and bringing it to a packing station. Generative AI is more creative, can own more processes, and can help stakeholders make better decisions based on real-time data.

And just as the supply chain begins to understand how to incorporate GenAI to make improvements, Agentic AI is coming on the scene. Early forms of Agentic AI were used as customer service bots or sales agents, but new iterations of the technology are autonomously scheduling meetings or writing code. What separates Agentic AI from its predecessors is its ability to make decisions and execute tasks on its own without human direction.

Supply Chain AI in 2025

Agentic AI won’t change the supply chain overnight, but we should see steady technological progress in the next few years. Here are some of the things we’re seeing from supply chain AI solutions in 2025:

• Better forecasting. Until the COVID-19 pandemic, forecasts were largely created based on historical data (basically, we hoped people would keep doing what they always did) — but those models no longer work. Generative AI lets companies analyze their full pool of historical data and stack it against other factors, such as inventory data, supplier data, distribution networks, and market trends, to create more accurate and resilient forecasts. Agentic AI can take this a step further by using that data to predict future trends with less need for human involvement.
• Advanced warehouse robotics and automation. Generative AI will let robots handle more complex tasks than simple picking, offering support across sorting, returns management, and more. Additionally, modern AI software can analyze warehouse layouts and processes to reduce travel distances for robots and employees, optimize workforce planning, and orchestrate optimized interactions between workers and robots to augment staff members.
• Improved risk management. With generative AI, risk assessments will go beyond basic seasonal or templated event models by allowing supply chain practitioners to model specific events (like hurricanes, wildfires, recessions, and yes, even pandemics) to see what risks they pose to the organization’s supply chain.
• Inventory management. Agentic AI tools are coming to market that can monitor inventory levels and place orders with suppliers. Some of these solutions can even renegotiate contracts to get better deals to streamline procurement.

AI: An Inevitable Part of the Future Supply Chain

Generative AI technology has much potential, but is still relatively new. Figuring out the best applications for Agentic AI will also take time and testing. It seems inevitable by now that AI will play a very prominent role in the future of the supply chain, but only time will tell exactly what that role looks like.

About Phoenix Investors

Founded by Frank P. Crivello in 1994, Phoenix Investors and its affiliates (collectively “Phoenix”) are a leader in the acquisition, development, renovation, and repositioning of industrial facilities throughout the United States. Utilizing a disciplined investment approach and successful partnerships with institutional capital sources, corporations and public stakeholders, Phoenix has developed a proven track record of generating superior risk adjusted returns, while providing cost-efficient lease rates for its growing portfolio of national tenants. Its efforts inspire and drive the transformation and reinvigoration of the economic engines in the communities it serves. Phoenix continues to be defined by thoughtful relationships, sophisticated investment tools, cost-efficient solutions, and a reputation for success.