A new report from RELEX Solutions suggests artificial intelligence is shifting from experimentation to a core role in supply chain decision-making, as companies contend with ongoing volatility and rising consumer demand uncertainty.
The State of Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI report found 67 per cent of retail and manufacturing leaders say their confidence in using AI for supply chain decisions has increased over the past year.
However, most organizations are not ready to fully hand over control. The report says 54 per cent prefer AI to make recommendations while humans retain final decision-making authority, and only 10 per cent would trust AI to make fully independent decisions.
Adoption is already underway across key functions. Nearly half (47 per cent) of respondents are using or planning AI-driven inventory and supply optimization, while 41 per cent are applying AI to logistics and routing.
Companies are also ramping up investment. The report found 71 per cent plan to invest in generative and agentic AI over the next three to five years, while 60 per cent are targeting predictive AI.
These investments come as 44 per cent of leaders cite consumer demand volatility as a top challenge over the same period.
In retail, 30 per cent of respondents identified adapting to sudden shifts in consumer demand as a major issue, driving increased use of AI-powered forecasting and inventory tools to improve responsiveness and protect margins.
Manufacturers, meanwhile, are dealing with upstream pressures. The report found 57 per cent say raw material procurement disruption is the most affected area of their supply chains, while 34 per cent pointed to regulatory and compliance pressures.
Across both sectors, companies are increasingly using AI to connect demand signals with planning decisions, improve forecast accuracy and mitigate risk.
“AI is becoming part of everyday supply chain decision-making,” said Dr. Madhav Durbha, group vice-president of manufacturing industry strategy at RELEX Solutions. “As volatility persists, companies are investing in AI-driven forecasting, optimization and decision support to respond faster and operate with greater confidence, even when conditions change quickly.”
The report also found sustainability is becoming a more immediate operational concern. While 63 per cent of respondents said its importance has increased, 34 per cent of manufacturers identified regulations and compliance as a source of disruption.
Overall, the findings point to a shift away from reactive supply chain management toward more technology-driven planning, as organizations look to build resilience in an increasingly uncertain environment.
Leave a Reply