Retailers Embrace AI Solutions to Tackle Supply Chain Issues

Retailers are increasingly investing in artificial intelligence (AI) and automation to address growing supply chain challenges and enhance fulfillment operations. A recent survey conducted by the global technology intelligence firm ABI Research revealed that over 90% of retailers plan to implement AI technology for decision support and network optimization.

According to the survey, Ryan Wiggin, a Senior Analyst at ABI Research, noted that retailers have gradually begun to adopt generative AI applications over the past year. Many have focused on developing system support chatbots and tools aimed at improving customer interactions. As the interest in AI grows, more than 40% of respondents expressed strong agreement that AI agents could significantly streamline decision-making processes. This includes tasks such as adjusting inventory levels, re-routing shipments, and initiating automatic re-orders.

Investments in Cybersecurity and Automation

In addition to software and automation, retailers are prioritizing cybersecurity. The survey indicated that more than 35% of retailers plan to invest over US$50,000 in IT security within the next year. The investment in operational technology (OT) security has also surged, driven by increased awareness of threats and evolving regulatory requirements.

Wiggin pointed out that retailers face significant challenges, particularly concerning data privacy and the complexities of upgrading or integrating legacy systems. He emphasized the importance of strong onboarding processes and ongoing support focused on data management and security.

These insights are part of ABI Research’s Supply Chain Survey 2025: Retail and Wholesale report, which is included in the company’s Supply Chain Management Software research service. This service provides essential research, data, and expert insights to help companies navigate the complexities of modern supply chains.

ABI Research serves as a pivotal link between technology solution providers and end-market companies, ensuring that both segments can benefit from exclusive research and guidance tailored to their needs.

For further information about ABI Research’s 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. More details can also be found on their website at www.abiresearch.com.