Interos: The Supply Chain Risks Hitting Businesses in 2025

interos.ai, a leader in AI-powered supply chain risk intelligence, has published its first annual Predictions Report for 2025, identifying key trends and risks expected to shape global supply chain management in the year ahead.

It draws on proprietary data and analysis to highlight how challenges like geopolitical instability, cyber threats, trade restrictions, climate disruptions and the secure use of AI will affect businesses worldwide.

The findings come at a time when concerns about supply chain resilience are mounting. McKinsey’s Global Supply Chain Leader Survey for 2024 found that companies were reducing their focus on resilience, with experts warning of a knowledge gap at the highest levels of leadership. According to the survey, only 30% of board members possess a deep understanding of supply chain issues and just a quarter of boards have formal processes to address supply chain risks.

“Forget this being a CSO or a procurement problem – supply chain risk management is a CEO dilemma," asserts Ted Krantz, CEO of interos.ai. "Businesses must evolve from reactive risk management to a proactive, AI-driven approach that prioritises resilience."

Critical supply chain risks for 2025

interos.ai's report outlines five key risks that organisations must navigate in 2025:

1. Geopolitical instability and economic damage

Geopolitical unrest in Eastern Europe, the South China Sea and the Red Sea presents a triple threat to global stability. These regions are critical to industries such as agriculture, civil engineering, retail and computer manufacturing, with more than 481 companies in the S&P 500 directly linked to high-risk areas. The report estimates that these tensions could lead to economic damages of up to US$1tn.

2. Physical cyber threats

Cyber attacks are evolving beyond software to target physical infrastructure. Threats such as undersea cable disruptions, satellite hacking and climate-driven vulnerabilities in data centres are being exploited by increasingly sophisticated adversaries. These attacks pose significant risks to global supply chain operations and highlight the need for robust cyber-physical security strategies.

3. Trade wars and inflation-driven disruptions

Trade tensions and rising inflation continue to reshape global commerce. For example, proposed tariffs, such as Donald Trump’s suggested 25% levies on China, Mexico and Canada, threaten to disrupt industries including automotive, agriculture and consumer electronics. Price surges, such as the widely noted "US$100 avocado," underline the financial challenges posed by trade restrictions and inflationary pressures on supply chains.

4. Climate-related disruptions

The intensification of climate change is another major concern for 2025. Catastrophic weather events like hurricanes and wildfires are predicted to disrupt the operations of 20 million businesses globally. These events will strain supply chains and require businesses to implement strategies to manage climate risks effectively.

5. AI supply chain security risks

As companies increasingly integrate AI into their operations, new risks emerge. These include threats like data poisoning and model corruption, which can compromise AI systems and lead to significant operational disruptions. The report warns that securing AI systems must be a top priority for organisations adopting this technology.

Moving from reactive to proactive risk management

interos.ai’s findings highlight the interconnected and evolving nature of supply chain risks. The report urges organisations to shift from reactive risk management approaches to proactive, AI-driven strategies that prioritise resilience.

It also underscores the need for integrated risk management across multiple areas, including cyber threats, extreme weather events, ESG regulations, government restrictions, geopolitical tensions and financial vulnerabilities. Addressing these risks is essential for ensuring operational continuity, regulatory compliance and competitive advantage.

Ted describes supply chains as the “bedrock of the global economy", underpinning critical sectors and daily life. "But," he continues, "they can also bring the world to a screeching halt. This is why the biggest issue keeping CEO’s up at night in 2025 should be, 'where is the risk in my supply chain and how do I eliminate it?'."

interos.ai's report serves as a stark reminder of the need for businesses to prioritise resilience, leverage AI for risk management and stay vigilant in the face of evolving global challenges.

As the report makes clear, the stakes are higher than ever for organisations relying on complex and interconnected supply chains.

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