AI usage in pharma supply chain is moving from pilots to practical deployment: report

The integration of artificial intelligence (AI) into the pharmaceutical supply chain is in the middle of an industry transition, shifting from reactive “firefighting” to proactive prevention. That’s the finding of the 2025 LogiPharma AI Report, based on a survey of 100 senior supply chain leaders across Europe and North America.

While investment remains consistent in real-time monitoring, particularly for cold chain logistics which are seen as the most vulnerable stage of pharma distribution, AI adoption is now strongest overall in predictive intelligence for the sector, according to the report.

“With customs clearance and in-transit handovers still viewed as the most vulnerable points, companies are deploying blockchain, predictive AI, and advanced monitoring to anticipate risks and mitigate them before they escalate,” the report states, with resilience increasingly designed into supply chain processes rather than bolted on.

The report found that 64% of those surveyed were evaluating blockchain and chain of custody technologies, followed by data analytics platforms (54%) and AI/machine learning for predictive risk alerts (53%), as part of a broader move towards a more proactive approach to resilience. The most popular investment is AI-driven demand sensing for new product launches (77%), followed by compliance automation (59%), and digital quality control (48%).

At the same time, survey respondents indicated that condition monitoring for temperature, humidity, and vibration (44%) remains a bedrock, while tools like digital twin modelling (32%) are still in the “exploratory” phase. When asked about other technologies to strengthen cold chain resilience, 50% said they are investing in or evaluating automated packaging solutions over the next year to 18 months.

“Packaging is only as protective as the environment it transits — apron dwell and handover cadence are decisive,” Jansen Stafford, regional head of cargo Europe for Cathay Cargo, said in the report. “The market is weighing reusable high-performance containers against cost and ground practicality, with lane- and season-specific guidance proving most useful.”

Regulations, contingencies, and challenges

When it comes to regulation, 74% of respondents say they are prepared to meet evolving global regulations, 63% describe themselves as “mostly prepared” with some gaps, while 26% are in the early stages and 11% consider themselves fully ready.

“Compliance is non-negotiable,” David Ruiz Perret, strategy and execution lead digital supply chain at MSD, said in the report. “Alongside safety, it is the top priority, which means we are always preparing and ensuring readiness. We want to stay ahead of regulations. Even though certain regulations are not yet mandatory and won’t be for years, we are already progressing toward implementation because we know it’s coming and don’t want to rush at the last minute.”

One area where survey respondents appear to be prepared is contingency planning, with re-shipment protocols (62%), dynamic route re-planning (61%), emergency courier handoff (57%), backup packaging (53%), and insurance (51%) all widely adopted as strategies.

“Insurance is important, especially when values are high, but it’s equally critical to have strong reshipping capabilities,” Stefano Chiei, director operations EMEA/EE for Advanced Bionics, said in the report. “One addresses financial loss, while the other addresses urgency — for example, if a patient is waiting for an item, you can’t simply rely on insurance compensation. In practice, this means being able to quickly reship products, even if it requires re-allocating items between clients.”

Despite all the progress, scaling AI poses challenges with survey respondents indicating that internal resistance to change (70%), regulatory uncertainty (58%), a shortage of skilled talent or AI literacy (48%), and siloed or poor-quality data (32%) outweighing budget as hurdles for adoption.

“What emerges is an industry at a crossroads: equipped with tools, convinced of the value, but still learning how to embed AI at scale,” the report concludes. “As pharma supply chains push forward, those who combine scalable platforms, cultural change, and sustainability commitments with intelligent AI integration will define the next generation of supply chain resilience.”