Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: AI is no longer an experiment when it comes to supply chain in Simple Termsand what it means for users..
AI-driven and cloud-native software platform Relex Solutions on Thursday released its State of Supply Chain 2026 report, finding that artificial intelligence is shifting from experimental use to a core role in supply chain planning, even as most companies stop short of fully autonomous decision-making.
The report said 67% of retail and manufacturing leaders have increased confidence in using AI for supply chain decisions compared with a year ago. Still, 54% prefer AI to generate recommendations while humans make final calls, and just 10% said they would trust AI to operate independently.
Adoption is expanding across functions. About 47% of respondents said they are using or planning AI-driven inventory and supply optimization, while 41% are applying AI to logistics and routing, according to the report.
Companies are also planning additional investment. The report found 71% expect to invest in generative and agentic AI over the next three to five years, and 60% plan to invest in predictive AI. Those efforts come as 44% of leaders identified volatile consumer demand as a top challenge during that period.
Retailers and manufacturers are experiencing different pressures.
In retail, 30% of respondents cited sudden shifts in consumer demand as a major challenge. The report said companies are turning to AI-driven forecasting and inventory tools to respond more quickly to changes while maintaining product availability and margins.
Manufacturers, meanwhile, reported greater disruption upstream. About 57% said raw material procurement is the most affected part of their supply chain, and 34% pointed to regulatory and compliance pressures as an increasing concern. The report said AI is being used to better connect demand signals with procurement and production decisions, helping companies manage supplier risk and improve forecast accuracy.
Across both sectors, the findings suggest a broader shift toward technology-enabled planning rather than reactive responses to disruption. Companies are focusing investments on tools that improve forecasting, automate inventory decisions and speed response times.
“AI is becoming part of everyday supply chain decision-making,” said Madhav Durbha, group vice president of manufacturing industry strategy at Relex Solutions. He said companies are investing in AI-driven systems to operate with greater confidence despite ongoing volatility.