In 2024, artificial intelligence (AI) was everywhere – in countless headlines, on every conference agenda and on the minds of leaders in virtually every industry. But for many, it remained more of a buzzword than a business driver. In 2025, however, QAD Director of Product Marketing Michael Ochi predicts that will change as more businesses discover how to move beyond experimentation and pilot projects to deliver tangible results.
This is the year that AI stops being just a buzzword and begins to evolve into an operational imperative for manufacturers, retail and supply chain companies. This transformation depends on having the ability to collect high-quality, high-volume data, and that is where radio frequency identification (RFID) technology shines.
Think of AI as a high-performance engine. Like any engine, it can’t run without fuel, and not just any type of energy source is going to cut it. It needs premium-grade fuel to operate at its highest potential. RFID, with its ability to deliver a steady and reliable stream of information, is the high-octane fuel that enterprise AI applications need. Without it, AI solutions risk sputtering along on lower-quality inputs and fail to deliver the results businesses are looking for.
In a recent article in RFID Journal, Michael shared five predictions for how leaders can combine AI and RFID to unlock greater visibility, efficiency and profitability in 2025 and beyond. Here’s a closer look at those insights and how they can help your organization gain and maintain a competitive edge.
1. AI-Driven Process Intelligence in High-Volume Environments
Does your business have millions of dollars for AI experimentation? Probably not, and you’re not alone. Inflation, high interest rates, supply chain disruption and trade issues are putting a squeeze on companies everywhere. AI technologies can help unlock much-needed efficiencies, but we have to cut through the chaos to select solutions that are going to deliver measurable results.
A Deloitte survey on AI in manufacturing found that 93% of manufacturers believe AI will be key for driving growth and innovation, and yet most projects have failed to meet expectations. Selecting the right problem to solve and tool for the job is key. As Michael explained, AI-enabled process intelligence platforms are great because they can ingest massive amounts to identify issues like the root cause of bottlenecks in operational environments and deliver insights that enhance processes.
Some manufacturing and supply chain software solutions have expanded their capabilities to include process mining, which uses pragmatic AI to transform raw data into actionable insights. These tools work with high-quality data, like the kind RFID generates, to deliver margin improvements by identifying opportunities to reduce waste and improve efficiency.
2. Unlocking Data as a Service (DaaS)
The earlier RFID systems are deployed in the supply chain, the greater value they can provide in terms of visibility and operational insights. For manufacturers, early deployment can also open the door to monetizing the data they generate, especially when it comes to B2B sales.
Enterprises can benefit from RFID capabilities in more ways than one. The data you generate and related AI-driven insights are valuable for not only your operations, but also that of your customers. By sharing this information with customers, manufacturers can unlock new opportunities, such as offering data as a service (DaaS), strengthen relationships and improve the terms of future agreements.
These partnerships also prevent a powerful opportunity for manufacturers to stay ahead of the curve. The global DaaS market was valued at $14.36 billion in 2023 and is expected to hit $76.8 billion by 2030, according to Grand View Research. By positioning themselves as providers of actionable, AI-enhanced data, companies can transform RFID investments into strategic assets that deliver downstream value.
3. Moving RFID Tagging Upstream
Walmart had the right idea when it implemented its RFID mandate for suppliers, resulting in increased inventory accuracy and streamlined supply chain processes. Building on his first two predictions, Michael asserts that now is the perfect time for manufacturers, distributors and retailers to revisit conversations with suppliers about RFID implementation.
Even if suppliers were hesitant in the past, they may be more open to the concept if your organization is able to show how RFID and AI work together to reduce waste, improve visibility and provide accurate data for informed decision-making.
For industries serving consumer packaged goods (CPG) or food and beverage, these conversations are likely already happening. Leadership teams are increasingly open to AI proposals and you can use relevant industry case studies to encourage buy-in.
4. Active RFID as a Critical Element in IoT Ecosystems
Active RFID tags, especially when integrated with broader IoT ecosystems, offer immense potential for enhancing operational intelligence. Sensor-equipped tags excel in environments where Wi-Fi and other connectivity methods might not be practical and provide critical data on vibration, temperature and other inputs that AI can use to support predictive maintenance and field service optimization.
In 2025, Michael recommends taking another look at every active tag and related data repository to identify new opportunities for AI integration. Existing deployments likely already capture important data, but could deliver even greater value with AI. The combination presents an opportunity to optimize equipment lifecycles, identify costly problems before they occur and much more.
The activity also presents a new revenue stream for OEMs. Companies may want to consider offering AI-enhanced service packages, such as predictive maintenance as a service, to increase value for customers and foster a competitive advantage in the market.
5. RFID and Computer Vision: A Powerful Partnership
Computer vision systems are becoming more accessible for manufacturers, suppliers and retailers thanks to advances in AI. That’s not to say everyone should deploy virtual reality headsets across their workforce, but a relatively simple AI-powered image analysis can be a powerful tool for monitoring equipment conditions, detecting defects and verifying inventory levels, to name a few use cases.
However, computer vision and RFID technologies serve different purposes and won’t replace one another. In applications that don’t require a line of sight, RFID may be preferable, while the opposite is true for computer vision. Rather than viewing these technologies as competitive forces, businesses leverage their complementary strengths. For example, using RFID to support AI training processes.
Driving Innovation in 2025 with RFID and AI
The broad adoption of AI combined with relatively high project failure rates remind us of the importance of approaching new technologies with caution, but the combination of RFID and AI is one business leaders can feel good about. The duo present a powerful opportunity to optimize processes, improve decision-making and increase profitability.
McKinsey’s 2024 Global Survey on AI found that 72% of organizations are using AI in at least one business function. With RFID’s ability to provide consistent, accurate data, more companies can make the move from AI experimentation to implementations that drive business value.
In 2025, the question is no longer if AI and RFID will transform operations, but how quickly enterprises embrace the opportunity they both bring.
