February 27, 2026
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Will AI Cut Warehouse Jobs Or Drive Supply Chain Efficiencies?
A Gartner survey found supply chain executives are split on whether the arrival of AI-enabled automation will lead to headcount reductions, but still ranked AI innovation as the top influencer of the supply chain in coming years, beating out tariffs.
Gartner asked 509 supply chain leaders globally across industries, from July to October 2025, to rank five out of 15 drivers that have the potential to “reshape how you define, organize and operation supply chains” over the next two years.
The top response was “changes in ways of working driven by advancements in AI and Agentic AI,” cited by 51%; followed in the top three by “use of economic policy by governments as political tools,” 41%; and “deglobalization or regionalization driven by geopolitical and economic tensions,” at 38%.
More than half (55%) of the supply chain leaders expect that advancements in agentic AI will reduce the need to hire for entry-level positions, while 51% believe the technology will drive a shift to overall workforce reductions. A significantly wider majority (86%) agreed that the adoption of agentic AI will require new processes for developing future talent pipelines.
Gartner’s interviews with high-performing organizations further found significantly higher adoption of agentic AI, and that these firms are prioritizing upskilling talent, rather than headcount reduction.
“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, VP 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.”
AI Integration Into Supply Chain Maturing
A November 2025 study from Mecalux and MIT’s Intelligent Logistics Systems Lab, based on responses from more than 2,000 warehouse and supply chain leaders across 21 countries, found more than 90% of warehouses now use some form of AI or advanced automation — and roughly 60% are operating at advanced maturity levels.
The study found AI now supports day-to-day workflows, including order picking and routing, inventory accuracy and slotting optimization, predictive maintenance, labor planning and performance monitoring, and safety and ergonomic risk detection.
The typical AI payback period was found to be two to three years, significantly faster than earlier automation investments.
“The data show that intelligent warehouses outperform not only in volume and accuracy, but in adaptability,” Mecalux CEO Javier Carrillo noted in the report.
Despite articles warning of extensive automation-caused job losses, the report indicated that more than three-quarters of surveyed organizations saw a rise in employee satisfaction after implementing AI. Over half increased their workforce size, driven by new roles such as AI/ML engineers, automation specialists, process-improvement experts, and data scientists.
The study still identified numerous barriers to supply chain teams taking full advantage of AI, including lack of technical expertise, poor data quality, integration challenges with legacy WMS and ERP systems, high upfront costs, and issues scaling pilots to multiple sites.
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Discussion Questions
Do you see AI-powered automation’s main benefit to supply chains being reducing jobs and driving down costs, or creating efficiencies and elevating roles?
Do you agree that entry-level jobs at the supply chain level are likely most vulnerable?
Poll
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Like most industries, AI will disrupt supply chains and cause selective losses. Some manual roles, like data entry and inventory booking, will be automated. Technical functions that need logic, like route planning, will be upended too. Although it has to be said that forward-thinking companies, like Amazon, already use extensive automation in these areas. The real disruption, however, is when AI gets combined with robotics to allow picking, packaging, and delivery.
The real disruption, of course, will be when the RW “Panel of Experts” is AI’ed ! 🙂
I can see that disruption happening already!
As Amazon showed us with Kiva, technology will absolutely take the place of warehouse jobs. While AI will have the most immediate impact with logistics, item placement on shelves, etc, it’s coming for the jobs soon.
AI-powered automation in the supply chain is often framed as a cost-cutting story, but in practice, it’s proving to be much more of an efficiency and role-elevation story—with some displacement along the way. The data suggests that automation is dramatically improving throughput, accuracy, and cost structures—cutting processing time by up to 50% and reducing fulfillment costs materially in some cases. At the same time, it is not eliminating the human role as much as redefining it. In fact, many warehouses report higher productivity, improved job satisfaction, and even workforce growth after implementing AI, alongside the creation of new roles such as automation specialists and AI operations managers. Net-net, the primary benefit is not simply reducing jobs—it’s creating more efficient, intelligent supply chains where human labor is focused on higher-value work.
That said, it would be unrealistic to ignore the displacement that is occurring. AI and robotics are increasingly taking over repetitive, physically demanding, and rules-based tasks—picking, packing, sorting, and even some analytical functions in logistics. Recent moves by companies investing heavily in automation, including warehouse restructurings and layoffs, reinforce that some roles will go away or require fewer people over time. The more accurate framing is that AI reduces the need for certain types of labor, while increasing demand for more technical, supervisory, and decision-oriented roles.
Entry-level jobs are, in many respects, the most vulnerable—but not universally so. Traditional entry points that rely on repetitive tasks or basic data processing are clearly at risk, and in some cases, those pathways into the industry are already narrowing. However, new entry-level roles are also emerging—ones that require digital literacy, comfort with systems, and the ability to work alongside automation. The long-term opportunity for the workforce is significant, but it will require reskilling and a shift in how we define “entry-level.”
Ultimately, AI in the supply chain is less about replacing people and more about changing what it means to work in the supply chain. The winners—both companies and employees—will be those who embrace that shift, investing in tools, training, and operating models that elevate human capability rather than simply reducing headcount.
The question, for some mysterious reason, treats these like mutually excusive concepts; but hasn’t the whole history of industry (since the 1700’s) been one of new technology>reduced jobs>re-employment elsewhere>increased production ??
As for what specifc jobs are most likely to be impacted first, I would think that would vary from company to company, depending on what specific uses they make of the technology(ies).
Smarter Material Handling equipment will reduce jobs in warehouses. If you want to call that “AI” , well be that way. What is becoming increasingly clear is that entry level jobs everywhere are at risk. I feel for the next college student who graduates with a boat load of debt, trained for a world that no longer exists, and with no path for getting to that post entry level job. That will be (one) of the major disruptions from AI.
It’s already been happening. Automation, as in computers and robots, have been making warehouses and supply chain operations more efficient. AI only enhances that.
And yes, entry-level jobs are likely to be most vulnerable. This requires employees to ramp up skills and capabilities. They may even shift to related jobs that use their skills, which aren’t (yet) impacted by AI and automation.
I suspect that, overall, AI will have little clear impact. That said, in certain companies, there will be excellent impact. The exact detail of the impact, though, will depend on the company and cannot be predicted. There are, after all, no universal values of AI — what value it has depends on each unique situation and category.
AI-powered automation in supply chains will undoubtedly reduce costs and streamline operations, but its main benefit shouldn’t be framed simply as cutting jobs. True value comes from creating efficiencies that allow people to focus on higher-value work rather than repetitive manual tasks. As we’ve seen historically with technology adoption, roles evolve rather than disappear entirely.
From a job loss perspective, retailers and logistics providers should invest in upskilling and reskilling so the workforce can transition into more advanced roles supporting and managing these AI systems.
Isn’t it all of the above? Create efficiencies by reducing jobs and driving down costs while elevating some roles. Isn’t this just another step in a long line of technological advances that have been injecting efficiencies for a couple of centuries? Say, like…electricity and the internal combustion engine?
No, I don’t think this is about entry level jobs first and foremost. Won’t two or three bosses now be able to do the work…planning, organizing, forecasting, budgeting…that used to take five or six bosses…??? Isn’t AI the thinking part that’s about to become so much more efficient? Add robotics for the labor and it sounds like a whole bunch of jobs are at risk. Bottom line, yes, we are in for some serious disruption to the supply chain and pretty much every other function in the retail model.
AI will fundamentally help the entire warehouse processing. But the labor component will be limited. Decades ago, I visited massive warehouses operated by five or six workers, including the manager. The same warehouses today are likely down to three or so workers. Can we get to zero with AI or any other operation tools development? I will bet on it.
Just like any other technology improvement, AI will (and already is) having an impact on jobs and efficiencies. Let’s remember that automation and AI itself is not brand new, it is, however, growing and expanding in new directions.
Things definitely have the potential to change – I saw a demonstration this week of remote controlled humanoid robots focused on warehouse operations that can,in theory, be controlled from anywhere in the world.
This creates the option for local warehouse operatives to be replaced by remote workers in locations with lower labour costs.
Add to this the potential for autonomous vehicles doing delivery work, this creates a threat to two entry-level roles in supply chain.
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Like most industries, AI will disrupt supply chains and cause selective losses. Some manual roles, like data entry and inventory booking, will be automated. Technical functions that need logic, like route planning, will be upended too. Although it has to be said that forward-thinking companies, like Amazon, already use extensive automation in these areas. The real disruption, however, is when AI gets combined with robotics to allow picking, packaging, and delivery.
The real disruption, of course, will be when the RW “Panel of Experts” is AI’ed ! 🙂
I can see that disruption happening already!
As Amazon showed us with Kiva, technology will absolutely take the place of warehouse jobs. While AI will have the most immediate impact with logistics, item placement on shelves, etc, it’s coming for the jobs soon.
AI-powered automation in the supply chain is often framed as a cost-cutting story, but in practice, it’s proving to be much more of an efficiency and role-elevation story—with some displacement along the way. The data suggests that automation is dramatically improving throughput, accuracy, and cost structures—cutting processing time by up to 50% and reducing fulfillment costs materially in some cases. At the same time, it is not eliminating the human role as much as redefining it. In fact, many warehouses report higher productivity, improved job satisfaction, and even workforce growth after implementing AI, alongside the creation of new roles such as automation specialists and AI operations managers. Net-net, the primary benefit is not simply reducing jobs—it’s creating more efficient, intelligent supply chains where human labor is focused on higher-value work.
That said, it would be unrealistic to ignore the displacement that is occurring. AI and robotics are increasingly taking over repetitive, physically demanding, and rules-based tasks—picking, packing, sorting, and even some analytical functions in logistics. Recent moves by companies investing heavily in automation, including warehouse restructurings and layoffs, reinforce that some roles will go away or require fewer people over time. The more accurate framing is that AI reduces the need for certain types of labor, while increasing demand for more technical, supervisory, and decision-oriented roles.
Entry-level jobs are, in many respects, the most vulnerable—but not universally so. Traditional entry points that rely on repetitive tasks or basic data processing are clearly at risk, and in some cases, those pathways into the industry are already narrowing. However, new entry-level roles are also emerging—ones that require digital literacy, comfort with systems, and the ability to work alongside automation. The long-term opportunity for the workforce is significant, but it will require reskilling and a shift in how we define “entry-level.”
Ultimately, AI in the supply chain is less about replacing people and more about changing what it means to work in the supply chain. The winners—both companies and employees—will be those who embrace that shift, investing in tools, training, and operating models that elevate human capability rather than simply reducing headcount.
The question, for some mysterious reason, treats these like mutually excusive concepts; but hasn’t the whole history of industry (since the 1700’s) been one of new technology>reduced jobs>re-employment elsewhere>increased production ??
As for what specifc jobs are most likely to be impacted first, I would think that would vary from company to company, depending on what specific uses they make of the technology(ies).
Smarter Material Handling equipment will reduce jobs in warehouses. If you want to call that “AI” , well be that way. What is becoming increasingly clear is that entry level jobs everywhere are at risk. I feel for the next college student who graduates with a boat load of debt, trained for a world that no longer exists, and with no path for getting to that post entry level job. That will be (one) of the major disruptions from AI.
It’s already been happening. Automation, as in computers and robots, have been making warehouses and supply chain operations more efficient. AI only enhances that.
And yes, entry-level jobs are likely to be most vulnerable. This requires employees to ramp up skills and capabilities. They may even shift to related jobs that use their skills, which aren’t (yet) impacted by AI and automation.
I suspect that, overall, AI will have little clear impact. That said, in certain companies, there will be excellent impact. The exact detail of the impact, though, will depend on the company and cannot be predicted. There are, after all, no universal values of AI — what value it has depends on each unique situation and category.
AI-powered automation in supply chains will undoubtedly reduce costs and streamline operations, but its main benefit shouldn’t be framed simply as cutting jobs. True value comes from creating efficiencies that allow people to focus on higher-value work rather than repetitive manual tasks. As we’ve seen historically with technology adoption, roles evolve rather than disappear entirely.
From a job loss perspective, retailers and logistics providers should invest in upskilling and reskilling so the workforce can transition into more advanced roles supporting and managing these AI systems.
Isn’t it all of the above? Create efficiencies by reducing jobs and driving down costs while elevating some roles. Isn’t this just another step in a long line of technological advances that have been injecting efficiencies for a couple of centuries? Say, like…electricity and the internal combustion engine?
No, I don’t think this is about entry level jobs first and foremost. Won’t two or three bosses now be able to do the work…planning, organizing, forecasting, budgeting…that used to take five or six bosses…??? Isn’t AI the thinking part that’s about to become so much more efficient? Add robotics for the labor and it sounds like a whole bunch of jobs are at risk. Bottom line, yes, we are in for some serious disruption to the supply chain and pretty much every other function in the retail model.
AI will fundamentally help the entire warehouse processing. But the labor component will be limited. Decades ago, I visited massive warehouses operated by five or six workers, including the manager. The same warehouses today are likely down to three or so workers. Can we get to zero with AI or any other operation tools development? I will bet on it.
Just like any other technology improvement, AI will (and already is) having an impact on jobs and efficiencies. Let’s remember that automation and AI itself is not brand new, it is, however, growing and expanding in new directions.
Things definitely have the potential to change – I saw a demonstration this week of remote controlled humanoid robots focused on warehouse operations that can,in theory, be controlled from anywhere in the world.
This creates the option for local warehouse operatives to be replaced by remote workers in locations with lower labour costs.
Add to this the potential for autonomous vehicles doing delivery work, this creates a threat to two entry-level roles in supply chain.