In supply chain operations, GenAI is gaining traction. But according to Logility’s Supply Chain Horizons 2025 report, many security leaders remain uneasy about what that means for data protection, legacy tech, and trust in automation.
The survey of 500 global supply chain leaders shows that 97% are already using some form of GenAI. But only a third are using tools designed specifically for supply chain tasks. And nearly half (43%) say they worry about how their data is used or shared when applying GenAI. Another 40% don’t trust the answers it gives.
For CISOs, these findings are a red flag. It’s a reminder that speed of adoption can outpace secure implementation. The rush to experiment with GenAI is real, but many tools are being used outside formal IT oversight. One example noted in the report: using ChatGPT to summarize meeting notes. That’s harmless in theory, but potentially risky depending on what data is shared and how.
Researchers also points to ongoing struggles with legacy systems. 52% of respondents say that outdated or on-prem systems are hurting supply chain performance and profitability. These systems often can’t support modern access controls, automation, or real-time visibility, yet many companies still rely on them for core operations.
The report shows that 57% of leaders see “data readiness” as a major obstacle to adopting tech. That doesn’t just mean cleaning up bad data, it often reflects the deeper issue of fragmented systems, undocumented flows, and unclear ownership. In other words, a classic security headache.
“The past no longer has to define the future,” said Allan Dow, President of Logility. “However, leaders must close the gap between vision and execution, especially when it comes to unlocking GenAI’s transformative potential.”
Interestingly, cloud migration is being driven not just by innovation, but by security and cost. Among those moving to the cloud, 41% cite cost efficiency as a key driver. But many also point to improved security and access to AI capabilities. For CISOs, this suggests that cloud security postures are finally gaining wider internal buy-in, especially as security teams push for better visibility and control.
The trust problem with GenAI still looms large. The report highlights a gap between potential and execution. CISOs may find allies in supply chain leaders who share the same concern, particularly when it comes to explainability and risk modeling. Automation is appealing, but trust in decisions generated by AI remains low, especially in regions like India and DACH (Germany, Austria, Switzerland), where most cited security and trust as top concerns.
One area of opportunity: synthetic data. Using AI to create artificial datasets could help with training models and testing scenarios, without exposing sensitive real-world information. But adoption remains early-stage.
In short, the security story here is familiar: high interest, lagging trust, and fragmented systems. GenAI may change how supply chains are run. But until legacy tech is retired, and CISOs are fully in the loop on GenAI use, the risks will grow alongside the benefits.
