More than half of supply chain leaders see agentic AI reducing entry-level hiring: Gartner

More than half of supply chain leaders expect advances in agentic AI will reduce the need to hire for entry-level roles, while about half anticipate broader workforce cuts, according to a new survey from Gartner.

The firm surveyed 509 supply chain leaders globally between July and October 2025. It found 55 per cent believe agentic AI will reduce entry-level hiring, while 51 per cent expect overall workforce reductions. At the same time, 86 per cent said adopting agentic AI will require new approaches to developing future talent pipelines.

“The highest performing supply chain organizations are using AI to reinvent how work gets done and how talent is developed. They are not treating AI as a blunt instrument for headcount reduction,” said Marco Sandrone, vice-president analyst in Gartner’s Supply Chain practice. “The priority for chief supply chain officers (CSCOs) should be redesigning roles, skills and workforce processes, so people and machines can create value together.”

Respondents cited “Changes in ways of working driven by advancements in AI and agentic AI” as the most influential factor shaping supply chain strategy over the next two years.

Gartner said high-performing organizations — defined as those exceeding expectations in areas such as customer lead time, satisfaction, time to market, revenue growth and sustainability — are adopting agentic AI at higher rates across procurement, production, logistics, warehouse management and planning.

Rather than focusing on headcount reductions, those leaders plan to upskill talent for the AI era, use AI-enabled tools to improve workforce planning and candidate engagement and expand automation to boost efficiency and reduce reliance on manual labour.

“Entry-level roles as understood today may fade in importance, but supply chains will still need emerging talent that is highly adaptive and innovative,” said Sandrone. “As organizations identify new ways of working through the use of AI, they will also have an advantage in identifying and attracting the kinds of talent that will sustain these new working models, including successfully reskilling current staff to take on new, higher-value roles.”