Don’t get lost with AI

From the July-August 2025 edition of Supply Chain Management Review.

July-August 2025

In this month's issue of Supply Chain Management Review, we look at what lessons supply chain leaders can take from Olympic skier Lindsay Vonn’s career to ensure their digital transformation is a success. In…

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As artificial intelligence continues to transform every corner of the supply chain, from forecasting and procurement to logistics and planning, it’s tempting to believe that technology alone will drive the next era of progress. But a closer look, particularly at the hiring process and team collaboration, reveals an inescapable truth: the human element still matters. And in many ways, it matters more than ever.

Norman Katz, president of supply chain consultancy Katzscan Inc. and a regular Supply Chain Management Review columnist, looked at the findings of the “2025 Skills Report for Supply Chain and Procurement” report from Skills Dynamics. What stood out most to him, he wrote, wasn’t the latest hard-skill demand or software trend, but rather the enduring need for something much older: interpersonal skills.

Katz noted that for most of the questions asked, the majority cited interpersonal skills as the top requirement. For example, when asked what, if any, skills do you look for in new/prospective procurement professionals, the top requirement named by 62% of the respondents was interpersonal skills. Katz’s takeaway: Soft skills matter.

In a world where efforts to streamline each and every process turns to automation, it is tempting to turn over hiring to AI. But should you? While technology, and AI specifically, has streamlined the hiring process, the point Katz makes is not whether it provides value, but whether it provides the right value. Some people have become skilled at filling out resumes or automated application systems with the right keywords, but that doesn’t always translate to the skills that will determine success. Is AI missing these?

It’s a question that HR professionals across the supply chain should be asking. While AI can analyze keywords, job history, and certifications, it can’t yet judge empathy, collaborative ability, or communication style with any meaningful accuracy. These traits are essential for building relationships across internal departments, with suppliers, or when managing exceptions in real-time operations.

The truth is, AI can support great talent. It can empower teams with faster insights, reduce administrative overhead, and help identify trends before they become problems. But it can’t, as of yet, replace the human relationships that bind the supply chain together. Until it can (if it ever can), we need to invest in people—not just technology.

NextGen Supply Chain Conference

We are inching closer to the 2025 NextGen Supply Chain Conference, taking place Oct. 22-24 in Nashville this year. As one of the premier events for senior-level professionals in the supply chain field, this conference brings together leaders who influence domestic and global supply chain operations. This year, we will focus on four key industry verticals in supply chain management and technology. Those are: Third-party Logistics; Food and Beverage; Consumer Packaged Goods; Life Sciences. As I write this, we are finalizing speakers in each of these areas, so check out nextgensupplychainconference.com for the latest updates on speakers, the full agenda, or to register to attend. I look forward to seeing you in Nashville.

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