Supply Chain AI Stalling Due to Workforce Skill Gaps

A new study by the Association for Supply Chain Management (ASCM) and the Digital Supply Chain Institute (DSCI) has highlighted a significant 'people paradox' hindering AI adoption. While 91% of organisations intend to use artificial intelligence to augment their workforce, 83% admit their staff currently lack the skills required to use these tools effectively. This lack of readiness is directly impacting the return on investment for new technology.

The report identifies several critical hurdles preventing full-scale AI integration, including cybersecurity fears, data quality issues, and a fundamental lack of trust in autonomous decision-making. Currently, many firms are limiting AI to basic data insights rather than allowing it to execute decisions, largely because management frameworks and workforce capabilities have failed to keep pace with algorithmic advancement.

For UK procurement and supply chain managers, the findings suggest that technology investment must be matched by a robust change-management strategy. Successful adoption is not merely a technical task but a management challenge that requires upskilling staff to work alongside AI, rather than viewing the technology as a direct replacement for human roles. Only 7% of leaders surveyed believe AI will replace workers entirely, with most seeing it as a tool for higher-value decision support.

To move beyond the pilot phase and achieve measurable efficiency gains, businesses are urged to treat workforce readiness as a core component of their digital procurement strategy. Leaders who prioritise transparency in how AI models operate and involve managers early in the process are seeing higher success rates in their deployments.

Source: Supply Chain Digital