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AI Hype vs. Reality

Are We Just Buying Fancy Toys While Our Supply Chains Rust?

It is December 2025. Take a look around your office, or your Zoom screen. Does the energy feel different to you?

A year ago, we were all running on pure adrenaline. We were told that Generative AI would fix everything. We thought that if we just bought enough software, our demand forecasting problems would vanish, our suppliers would automatically fall in line, and we’d finally get some sleep.

Now, as we stare down the barrel of 2026, the mood has shifted. I call it "reality setting in."

We have spent the last 18 months launching pilot programs. We’ve built "chatbots" for our internal teams. We’ve spent millions. But let’s be honest: Has your on-time delivery actually improved? Is your warehouse running smoother? Or are we just incredibly busy managing new tech while the actual business problems—like tariffs, port delays, and messy data, are still sitting there, waiting for us?

I think we might be getting lost in the hype. We are polishing the hood of the car while the engine is making a funny noise.

The "Pilot Trap" of 2025

If 2024 was the year of "Wow, look what AI can do," 2025 has been the year of "Why isn't this working yet?"

A recent report from McKinsey dropped a truth bomb last month: while almost everyone is trying AI, very few companies are seeing it actually change their bottom line. We have ended up in what I call the "Pilot Trap." We have cool demonstrations that look great in a boardroom presentation, but they don't help the guy on the loading dock.

The problem isn't the technology. The problem is us. We got distracted.

We tried to put a Ferrari engine (AI) into a beat-up sedan (our old, messy data). As noted in PwC’s 2025 Operations Survey, over 90% of leaders admit their tech investments are stalling because their underlying data is a mess. You can't ask an AI to predict next month's sales if your system lists the same bolt under three different names.

The Shift: Less "Chatting," More "Doing"

But it’s not all bad news. While the hype is dying down, the real work is starting. The companies that are actually winning right now aren't using AI to write emails or summarise PDFs. They are using it to do things.

This is the biggest shift I’ve seen in late 2025. Experts call it "Agentic AI," but let’s use plain English: It’s software that acts like an employee, not a consultant.

In 2024, you would ask an AI, "What happens if there is a strike at the port?" and it would write you a report. Now, the best tools don't just write the report. They see the strike coming, check your inventory, and automatically reroute the shipment to a different port before you even finish your morning coffee.

Gartner’s latest trend report points out that this ability to act, not just analyze, is the only thing generating real return on investment right now. It takes the boring, repetitive work off our plates so we can focus on the big, messy human problems.

Looking at 2026: Back to Basics (But Better)

So, what is coming next year? If you are planning your 2026 strategy right now, here is my advice: Stop chasing the magic.

Here is what I think the next 12 months will look like:

1. The "Boring" Stuff Becomes Cool Again You are going to see smart leaders pulling budget away from flashy AI experiments and putting it into data cleaning. It sounds dull, I know. But you cannot have a smart supply chain if your data is dumb. The winners in 2026 will be the ones who fix their foundation.

2. Resilience Beats Efficiency Have you looked at the news? Trade rules are changing, tariffs are popping up, and supply routes are shaky. For a long time, we used tech to squeeze every penny out of the process. Now, we need to use tech to survive the chaos. Recent studies show that the main goal for AI in 2026 won't be "cheaper", it will be "safer." We need systems that warn us about risk, not just cut costs.

3. We Need Humans More Than Ever There is a fear that AI will replace supply chain managers. I see the opposite happening. As the software handles the math and the tracking, we need experienced humans to handle the relationships. An AI can reroute a ship, but it cannot call a supplier you've known for ten years and ask for a favor during a crisis. The "human touch" is going to become a premium asset.

The Bottom Line

We are at a crossroads. We can keep playing "AI tourism", visiting the future but never actually living there, or we can get back to business.

AI isn't a magic wand. It’s a power tool. And like any power tool, it’s useless if you don't have a blueprint for what you're building.

As we head into 2026, let’s make a pact. Let’s stop asking "What cool new thing can this tech do?" and start asking "Does this actually help us ship product, save money, or reduce risk?"

If the answer is no, skip the pilot. Go fix your data instead.

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