Gartner: AI is Changing Supply Chain Talent Strategies

The relationship between artificial intelligence and workforce planning has reached a critical juncture, particularly for entry-level positions.

According to Gartner's Future of Supply Chain 2026 report, organisations are grappling with how to maintain headcount while AI takes on tasks traditionally assigned to new employees.

The research, which surveyed 509 global supply chain leaders between July and October 2024, explores how AI adoption is reshaping talent strategies and career development pathways. For HR professionals, the findings highlight a fundamental shift in how organisations must approach recruitment, training and workforce development.

The survey reveals that 55% of supply chain leaders anticipate agentic AI will reduce the need for entry-level positions. Additionally, 51% of leaders believe AI will result in overall workforce reductions. Leaders cited "changes in ways of working driven by advancements in AI and agentic AI" as the most influential cause for redefining supply chain strategy across the next two years.

However, the picture is more nuanced than simple headcount reduction. While AI is automating repetitive tasks and taking on responsibilities once assigned to junior staff, high-performing organisations are using this shift to reinvent their talent development models rather than simply cutting positions.

"The highest performing supply chain organisations are using AI to reinvent how work gets done and how talent is developed," says Marco Sandrone, VP Analyst in Gartner's Supply Chain practice.

"They are not treating AI as a blunt instrument for headcount reduction. The priority for chief supply chain officers (CSCOs) should be redesigning roles, skills and workforce processes, so people and machines can create value together."

Rethinking talent pipelines

The implications for talent acquisition and development are significant. According to the research, 86% of respondents believe that agentic AI adoption will change how talent pipelines operate, requiring new processes and a fundamental rethink of how organisations nurture emerging talent.

This creates a pressing challenge for HR teams. If traditional entry-level roles are being redirected to AI systems, organisations must develop alternative pathways for bringing younger generations into the workforce. Without access to these foundational positions, developing talent has no way of entering organisations and building the skills needed to progress into senior roles.

Talent strategies from high performers

Gartner's analysis identified high-performing organisations that excelled in customer lead time, satisfaction, time to market, revenue growth and sustainability goals over the previous 12 months. These leaders demonstrated significantly higher adoption of agentic AI across procurement, production, logistics, warehouse management and planning.

Crucially, these organisations were more likely to understand that traditional talent pyramids are changing. Rather than pursuing headcount reduction, they are prioritising talent strategy reinvention as the need for conventional entry-level roles diminishes.

The high-performing leaders are instead prioritising specific talent strategies. They are upskilling existing employees to understand how to utilise AI and work alongside it effectively. They are using AI-enabled tools to optimise workforce planning and engagement.

Additionally, they are improving efficiency by increasing automation and advanced technologies, therefore reducing reliance on manual labour while repositioning human talent for higher-value work. This approach ensures that employees remain central to operations whilst taking on more strategic responsibilities.

"Entry-level roles as understood today may fade in importance, but supply chains will still need emerging talent that is highly adaptive and innovative," says Marco. "As organisations 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."

Building sustainable talent pathways

AI adoption demands a fundamental rethinking of talent strategy. Rather than viewing AI as a tool for workforce reduction, forward-thinking organisations are using it to redefine employee roles and create new models for developing and utilising talent.

The challenge lies in building these new pathways while ensuring opportunities remain for emerging professionals to enter and grow within organisations. HR leaders must balance automation benefits with the need to maintain robust talent pipelines.

Organisations that successfully navigate this transition will be those that prioritise both technological advancement and human development. By investing in upskilling programmes and reimagining career progression, companies can ensure they have the adaptive workforce needed for future success.