Amid geopolitical and trade tensions and rapid technological advancement, artificial intelligence (AI) and supply chain strategies will be high on the agenda for treasury and finance executives in 2025—particularly those in the retail and consumer packaged goods (CPG) industries.

Retail and CPG supply chains, already complex, have faced growing strain since the COVID-19 pandemic. With supply chains still vulnerable, retail and CPG companies “Are looking to increase operational efficiency and throughput of the supply chain with AI, while addressing rising costs”, according to NVIDIA’s survey report, State of AI in Retail and CPG: 2025 Trends.

This report delves into how AI is being implemented across the retail and CPG sectors and explores its impact on industry-specific challenges such as supply chain management.

AI in action: Addressing vital supply chain pain points in retail and CPG firms

A majority (58%) of survey respondents identified enhancing supply chain efficiency and throughput as the leading challenge that retailers and CPG manufacturers are tackling with AI. By forecasting inventory requirements and streamlining shipping timelines, AI helps ensure that high-demand products are available when needed, the NVIDIA survey revealed.

                          Top 3 Supply Chain Issues Addressed with AI

Source: State of AI in Retail and CPG: 2025 Trends

Cost reduction was the second most cited challenge, noted by 45% of respondents. AI is particularly effective in this area, as it can uncover inefficiencies across the supply chain—enabling companies to pinpoint cost-saving opportunities while maintaining operational performance.

Furthermore, the NVIDIA survey highlights that retail and CPG companies are turning to AI to address two closely linked challenges: meeting customer expectations (42%) and supporting the expansion in digital commerce (34%). These priorities are largely driven by the acceleration of online shopping, which has raised consumer expectations around speed, availability, and convenience. Customers now expect quick deliveries, minimal stockouts, and seamless experiences. When faced with fulfilment errors or delays, they are more likely to switch to competitors without hesitation.

Retail and CPG companies to ramp up AI investments for supply chain operations in 2025

Based on NVIDIA's survey, nearly all retail and CPG firms anticipate increasing their investment in AI in 2025—and investing in AI for supply chain operations is no exception. In fact, an overwhelming 82% of executives and supply chain professionals surveyed said they plan to boost their AI investment in this area.

                                    2025 Supply Chain AI Investment

Source: State of AI in Retail and CPG: 2025 Trends

Among those planning to increase their AI budgets, some companies are expecting significant increases in AI spending for supply chain operations. According to the NVIDIA survey, 25% of respondents intend to raise their supply chain AI investment by more than 20%, while an additional 14% project an increase of 10% to 20%. This trend underscores the growing reliance on AI as a core enabler of supply chain resilience and agility.

Notably, no respondents reported plans to reduce their investment, and 18% expect their spending to remain unchanged. This consistent investment trajectory reinforces AI’s crucial role in shaping the future of supply chain management.

Where is AI investment in supply chains headed?

So, where is this AI investment likely to go? The NVIDIA survey revealed that demand forecasting and prediction is the top investment priority, with 82% of retail and CPG respondents highlighting it as a key area of focus. Beyond forecasting, AI is expected to be deployed in other aspects of supply chain operations with comparable levels of interest. These include deploying digital copilot advisors for warehouse staff (35%), automating the creation of periodic reports (33%), and investing in logistics simulation and optimization (27%) —all contributing to more efficient and responsive supply chains.

                   Top Areas for AI investment in Supply Chain Operations

Source: State of AI in Retail and CPG: 2025 Trends

The NVIDIA survey report also found that “A significant portion of companies will also be looking toward robotics and physical AI to support supply chain operations, especially among CPG companies. For instance, 29 percent said they were looking to invest in pick-and-place robotics solutions, where robotic arms (like gantry or delta robots) automate the process of picking up products and inspecting them or placing them in packages.”

In addition, about one in four companies (24%) indicated plans to invest in smart forklifts or automated mobile robots (AMRs), while another 24% are aiming to invest in leveraging sensors and AI to capture data and intelligence at the loading dock.

To conclude, evidence from the NVIDIA survey report demonstrates that AI has had a transformative impact on supply chain management—automating repetitive tasks (61%), enhancing decision-making (58%), improving customer service (55%), optimizing inventory management (48%), strengthening forecasting accuracy and predictive analytics (32%), augmenting employee training and onboarding (23%), and bolstering cybersecurity and fraud detection (19%).

Perhaps most notably for treasury and finance executives in the retail and CPG sectors, four in five companies reported that AI has helped cut supply chain operational costs, with 25% reporting cost reductions of at least 10%. These findings make one thing clear: AI is no longer a future consideration—it’s a present-day strategic and tactical imperative for financial resilience and operational control.

As treasury teams in retail and CPG industries navigate risk, liquidity, and performance, AI-powered supply chain strategies will be critical for maintaining capital efficiency, securing competitive advantage, and avoiding the risks of falling behind in an increasingly volatile global trade environment.