Report: Five trends in AI and data science for 2025
Companies will continue to grapple with the challenges and benefits of artificial intelligence in the year to come—from managing the hype to measuring progress.
Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.
In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.
The five trends range from the promise of agentic AI to the struggle over which C-suite role should oversee data and AI responsibilities. At a glance, they reveal that:
Leaders will grapple with both the promise and hype around agentic AI. Agentic AI—which handles tasks independently—is on the rise, in the form of generative AI bots that can perform some content-creation tasks. But the authors say it will be a while before such tools can handle major tasks—like make a travel reservation or conduct a banking transaction.
The time has come to measure results from generative AI experiments. The authors say very few companies are carefully measuring productivity gains from AI projects—particularly when it comes to figuring out what their knowledge-based workers are doing with the freed-up time those projects provide. Doing so is vital to profiting from AI investments.
The reality about data-driven culture sets in. The authors found that 92% of survey respondents feel that cultural and change management challenges are the primary barriers to becoming data- and AI-driven—indicating that the shift to AI is about much more than just the technology.
Unstructured data is important again. The ability to apply Generative AI tools to manage unstructured data—such as text, images, and video—is putting a renewed focus on getting all that data into shape, which takes a whole lot of human effort. As the authors explain “organizations need to pick the best examples of each document type, tag or graph the content, and get it loaded into the system.” And many companies simply aren’t there yet.
Who should run data and AI? Expect continued struggle. Should these roles be concentrated on the business or tech side of the organization? Opinions differ, and as the roles themselves continue to evolve, the authors say companies should expect to continue to wrestle with responsibilities and reporting structures.
New York-based Cofactr will now integrate Factor.io’s capabilities into its unified platform, a supply chain and logistics management tool that streamlines production, processes, and policies for critical hardware manufacturers. The combined platform will give users complete visibility into the status of every part in their Bill of Materials (BOM), across the end-to-end direct material management process, the firm said.
Those capabilities are particularly crucial for Cofactr’s core customer base, which include manufacturers in high-compliance, highly regulated sectors such as defense, aerospace, robotics, and medtech.
“Whether an organization is supplying U.S. government agencies with critical hardware or working to meet ambitious product goals in an emerging space, they’re all looking for new ways to optimize old processes that stand between them and their need to iterate at breakneck speeds,” Matthew Haber, CEO and Co-founder of Cofactr, said in a release. “Through this acquisition, we’re giving them another way to do that with acute visibility into their full bill of materials across the many suppliers they work with, directly through our platform.”
“Poor data quality in the supply chain has always been a root cause of delays that create unnecessary costs and interfere with an organization’s speed to market. For manufacturers, especially those in regulated industries, manually cross-checking hundreds of supplier communications against ERP information while navigating other complex processes and policies is a recipe for disaster,” Shultz said. “With Cofactr, we’re now working with the best in the industry to scale our ability to eliminate time-consuming tasks and increase process efficiencies so manufacturers can instead focus on building their products.”
Economic activity in the logistics industry expanded in January, growing at its fastest clip in nearly two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The LMI jumped nearly five points from December to a reading of 62, reflecting continued steady growth in the U.S. economy along with faster-than-expected inventory growth across the sector as retailers, wholesalers, and manufacturers attempted to manage the uncertainty of tariffs and a changing regulatory environment. The January reading represented the fastest rate of expansion since June 2022, the LMI researchers said.
An LMI reading above 50 indicates growth across warehousing and transportation markets, and a reading below 50 indicates contraction. The LMI has remained in the mid- to high 50s range for most of the past year, indicating moderate, consistent growth in logistics markets.
Inventory levels rose 8.5 points from December, driven by downstream retailers stocking up ahead of the Trump administration’s potential tariffs on imports from Mexico, Canada, and China. Those increases led to higher costs throughout the industry: inventory costs, warehousing prices, and transportation prices all expanded to readings above 70, indicating strong growth. This occurred alongside slowing growth in warehousing and transportation capacity, suggesting that prices are up due to demand rather than other factors, such as inflation, according to the LMI researchers.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
Business software vendor Cleo has acquired DataTrans Solutions, a cloud-based procurement automation and EDI solutions provider, saying the move enhances Cleo’s supply chain orchestration with new procurement automation capabilities.
According to Chicago-based Cleo, the acquisition comes as companies increasingly look to digitalize their procurement processes, instead of relying on inefficient and expensive manual approaches.
By buying Texas-based DataTrans, Cleo said it will gain an expanded ability to help businesses streamline procurement, optimize working capital, and strengthen supplier relationships. Specifically, by integrating DTS’s procurement automation capabilities, Cleo will be able to provide businesses with solutions including: a supplier EDI & testing portal; web EDI & PDF digitization; and supplier scorecarding & performance tracking.
“Cleo’s vision is to deliver true supply chain orchestration by bridging the gap between planning and execution,” Cleo President and CEO Mahesh Rajasekharan said in a release. “With DTS’s technology embedded into CIC, we’re empowering procurement teams to reduce costs, improve efficiency, and minimize supply chain risks—all through automation.”
And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.
One of the biggest targets for innovation spending will artificial intelligence, as supply chain leaders look to use AI to automate time-consuming tasks. The survey showed that 41% are making AI a key part of their innovation strategy, with a third already leveraging it for data visibility, 29% for quality control, and 26% for labor optimization.
Still, lingering concerns around how to effectively and securely implement AI are leading some companies to sidestep the technology altogether. More than a third – 35% – said they’re largely prevented from using AI because of company policy, leaving an opportunity to streamline operations on the table.
“Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage,” Kristi Montgomery, Vice President, Innovation, Research & Development at Kenco, said in a release. “Now’s the time for organizations to explore and experiment with the tech, especially for automating data-heavy operations such as demand planning, shipping, and receiving to optimize your operations and unlock true efficiency.”
Among the survey’s other top findings:
there was essentially three-way tie for which physical automation tools professionals are looking to adopt in the coming year: robotics (43%), sensors and automatic identification (40%), and 3D printing (40%).
professionals tend to select a proven developer for providing supply chain innovation, but many also pick start-ups. Forty-five percent said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
there’s room to grow in partnering with 3PLs for innovation: only 13% said their 3PL identified a need for innovation, and just 8% partnered with a 3PL to bring a technology to life.
Walk into any high-velocity distribution facility and you'll immediately grasp the complexity: dozens of forklifts move in orchestrated patterns while automated systems hum along conveyor lines, all working to meet demanding throughput targets. Yet what remains invisible to the casual observer is how maintenance challenges can bring this carefully choreographed dance to a halt.
For facilities moving millions of pieces weekly, maintenance demands fundamentally different solutions. The traditional approach to material handling maintenance that works for smaller operations isn't just constraining productivity—it's holding back your entire operation.
Warning signs that you need an upgrade
For facility leaders managing 40+ forklifts and complex material handling systems, the warning signs often hide in plain sight. The first clear indicator that your current maintenance strategy isn't keeping pace with your high-velocity facility appears when equipment downtime increasingly affects your ability to meet throughput targets. This challenge is compounded by climbing rental equipment costs as you struggle to compensate for unavailable machinery. The human impact becomes evident when floor supervisors and staff begin expressing mounting frustration about not having the machinery they need available to do their job.
More concerning still, safety incidents related to equipment issues may become more frequent, creating both operational and liability risks. The financial strain finally manifests in mounting overtime costs because you simply don't have enough functioning equipment to run operations efficiently. These interconnected issues signal a maintenance strategy that needs urgent reevaluation and restructuring.
If these symptoms sound familiar, you're not alone. Many high-velocity facilities have outgrown the same maintenance principles they applied as a smaller operation, only to find them inadequate at scale.
The scale challenge
The complexity of a large facility creates unique challenges that make traditional maintenance approaches insufficient. Equipment diversity presents a significant hurdle, as larger facilities must manage multiple types of forklifts, automated systems, and specialized equipment, each requiring different maintenance expertise and parts inventories. Communication complexity also poses a major challenge—while information flows easily in smaller facilities where everyone knows the status of every piece of equipment, this informal communication breaks down in large operations with multiple shifts.
The scale of impact becomes exponentially more significant in high-velocity facilities, where a single forklift breakdown in a critical area can impact dozens of downstream processes. Maintenance timing presents another crucial challenge, as continuous operations and high utilization rates make it increasingly difficult to find maintenance windows, and waiting for equipment to fail is simply not an option.
Building a maintenance strategy that matches your scale
High-velocity facilities require a transformed maintenance approach, not just scaled-up traditional processes. This starts with dedicated on-site teams who develop deep facility knowledge and conduct preventive maintenance strategically during optimal windows. Smart inventory management of parts ensures critical components are always available without overstocking, while data-driven systems help track equipment performance patterns and guide future investment decisions.
Before investing millions in facility expansion or automation, consider this: Implementing proper maintenance strategies can boost productivity 10%-20% at a fraction of the cost of facility expansion or automation. This comprehensive approach leads to reduced equipment downtime, improved safety outcomes, and enhanced staff satisfaction by transforming maintenance from a reactive necessity into a proactive tool for operational excellence.
Ready to transform your maintenance strategy? Here are the key steps to implementation:
Start with a thorough assessment phase, reviewing safety incidents, analyzing current maintenance costs, and evaluating how maintenance affects facility key performance indicators (KPIs).
Develop tailored processes by establishing proper preventive maintenance procedures and implementing robust data collection protocols.
Structure your maintenance team effectively, with clear roles, communication protocols across shifts, and comprehensive training programs.
By taking this methodical approach to maintenance strategy, facilities can achieve operational excellence without the massive capital expenditure typically associated with major operational improvements. The key lies not in maintaining more, but in maintaining smarter.
In today's fast-paced distribution environment, your maintenance strategy can't be an afterthought—it needs to be as sophisticated as your operations. In high-velocity facilities. Maintenance isn't just about fixing equipment, it's about maintaining productivity, safety, and competitive advantage. The time to evolve your maintenance strategy is now, before considering more costly alternatives. Your facility's full potential depends on it.
About the Author: Cory Monroe is Regional Sales Director at Concentric, a national distributed power services organization specializing in maintenance and power solutions that deliver resilient and sustainable facility systems for critical power and forklift mobility.