Joint report shows enthusiasm is high, but AI remains on a “short leash” as workforce readiness, frontline engagement and cybersecurity safeguards lag behind.

The organizations making real progress treat workforce readiness as part of the technology investment, not an afterthought.”

— ASCM CEO Abe Eshkenazi

CHICAGO, IL, UNITED STATES, October 14, 2026 /EINPresswire.com/ — Today the Association for Supply Chain Management (ASCM) and the Digital Supply Chain Institute (DSCI) announced their findings from a new joint report, The People Paradox in Supply Chain AI Integration. The study found that while 91% of organizations plan to use AI to augment human workers, 83% say their employees are unprepared to use AI effectively.

The research finds that the biggest obstacles to scaling AI are not executive skepticism or a lack of buy-in. Instead, organizations face four business hurdles: an unready workforce, an inability to trust AI to act autonomously, cybersecurity concerns, and persistent difficulty proving return on investment. The result is a high-interest, low-execution cycle in which companies hold AI on a short leash until talent, trust, and measurable business value catch up.

“AI adoption in supply chain is more about people than it is technology,” said ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE. “The organizations making real progress treat workforce readiness as part of the technology investment, not an afterthought. They learn by doing, bringiing managers into the process early, and building trust one function at a time.”

Key findings from the report include:
• Workforce readiness is the top bottleneck: 83% of respondents say their employees are unprepared to use AI effectively, and only 14% say their organizations are fully prepared for an AI-augmented future. Just 7% expect AI to directly replace workers, while 51% expect it to shift people toward higher-value decision-making and 40% expect new roles to emerge.

• AI is kept on a short leash: Across 13 core supply chain functions, average AI adoption scores just 1.94 on a five-point scale ranging from no use (1) to fully autonomous execution (5). Planning leads, with demand planning at 2.28 and supply and inventory planning at 2.12, while execution-heavy functions trail. Reverse logistics ranks lowest at 1.59.

• Strategy is trapped at the top: 82% of C-suite leaders actively lead, implement or scale AI initiatives, but direct leadership drops to 12% at the director level. Half of directors, 51% of managers, and 70% of staff say they are aware of AI initiatives without being actively involved.

• Learning by doing separates leaders from laggards: 17% of organizations with an AI-ready workforce have put AI to work across an average of six supply chain functions and report a 71% project success rate. Among unprepared organizations, 64% remain stuck in pilot or planning stages, with a 28% success rate.
• Skills and ROI, not skepticism, stall deployment: The most cited barriers are a tie between a lack of workforce skills and resources (33%) and an unclear business case or return on investment (33%), followed by poor data quality (25%).

• Cyber concern outpaces cyber controls: 92% of leaders express significant concern about cybersecurity risks introduced through AI-enabled suppliers and trade partners, yet organizations have implemented an average of just 2.3 of six standard security practices. Only 28% maintain AI-specific incident response plans, and 24% use system segmentation to contain breaches.

• Leaders want to see inside the black box: 91% demand transparency into how AI models generate predictions and recommendations, while 43% express concern about algorithmic bias in supplier selection or inventory allocation.

Results to date are positive but incremental. More than half of leaders (55%) describe their AI deployments as “somewhat successful,” reflecting isolated wins rather than broad operational change. Over the next two years, leaders expect the biggest payoffs to come from faster decision-making through shorter planning cycles (46%), lower overall supply chain costs (42%) and higher process automation rates (40%).

“Leaders have accepted AI in principle. What most organizations haven’t built yet is the capacity to execute it in practice,” said Marko Kovacevic, Managing Director of DSCI. “With tariff shifts, demand shocks and geopolitical disruption, the advantage will go to companies that can sense and re-plan fastest. That makes AI readiness a management challenge first and a technology challenge second.”

The report builds on the partnership ASCM and DSCI launched in 2025 to equip chief supply chain officers and their teams to lead digital transformation. In addition to the survey findings, it includes an executive action roadmap and diagnostic questions to help leaders move AI from pilot to production.

The full report is available at https://www.ascm.org/making-an-impact/research/dsci/

About ASCM
The Association for Supply Chain Management (ASCM) is the global pacesetter of organizational transformation, talent development and supply chain innovation. As the largest association for supply chain, ASCM members and worldwide alliances fuel innovation and inspire accountability for resilient, dynamic and sustainable operations. ASCM is built on the foundation of world-class APICS education, certification and career resources. For more information, visit ascm.org.

About DSCI
The Digital Supply Chain Institute (DSCI) is a non-profit member-led applied research organization founded by the Center for Global Enterprise. DSCI is dedicated to transforming traditional global supply chains into dynamic, digital-first ecosystems. Through thought leadership, collaborative research, and implementation programs, DSCI helps its members use digital transformation for competitive advantage, enhanced agility, and cyber resilience. For more information, visit dscinstitute.org.
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Mindy Weinstein
ASCM
MWEINSTEIN@ASCM.ORG
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