RELEX Solutions’ State of Supply Chain 2026 report paints a picture of organisations moving artificial intelligence out of the lab and into frontline planning as persistent volatility forces tougher choices across sourcing, pricing and inventory.
According to the report, which draws on a January 2026 survey of 514 retail, manufacturing, wholesale and supply‑chain leaders, confidence in AI for supply‑chain decision‑making is rising: 67 percent of retail and manufacturing...
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respondents say their confidence has increased compared with last year. That greater faith is tempered by caution about autonomy, 54 percent would have AI make recommendations with humans making the final call, while only 10 percent would trust AI to act entirely independently.
The research shows AI adoption is already focused on core operational problems. Nearly half of respondents (47 percent) are using or plan to use AI for inventory and supply optimisation, and 41 percent are applying it to logistics and routing. Looking ahead, 71 percent expect to invest in generative and agentic AI and 60 percent in predictive AI over the next three to five years, signalling a shift from point solutions to broader, decision‑support platforms.
“AI is becoming part of everyday supply chain decision‑making,” said Dr. Madhav Durbha, group VP 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 situates AI adoption against a backdrop of acute economic and geopolitical pressures. According to RELEX, 86 percent of supply‑chain leaders have been affected by trade policy changes or tariffs, prompting a mixture of responses: more than half of companies have raised consumer prices to cover higher costs, 24 percent have shifted sourcing away from countries most directly affected by trade moves, and 18 percent have restructured supply chains or delayed investments. RELEX also finds 60 percent of companies are overhauling their supply chains in response to growing trade complexity and market unpredictability.
Sector differences are notable. Retailers highlight sudden swings in consumer demand as a primary concern, with 30 percent identifying rapid demand shifts as a major challenge and using AI‑driven forecasting and inventory tools to improve responsiveness. Manufacturers name raw material procurement disruption as their most impacted area, 57 percent, and point to regulatory and compliance pressures, cited by 34 percent, as an additional strain. The report suggests firms are increasingly using AI to link demand signals with procurement and production decisions to sharpen forecasts and reduce supplier risk.
Sustainability has moved from rhetoric to restriction: 63 percent of respondents say the importance of sustainability in their supply‑chain strategy has increased, making ESG considerations an operational constraint that must be balanced against cost and service objectives.
Investment appetite is real but implementation faces headwinds. RELEX notes that 60 percent of organisations are directing funds to AI as a way to navigate inflation and trade volatility, yet nearly half report talent shortages and budgetary limits that could impede deployment. The result is a split between organisations that accelerate tech adoption and those forced to postpone or reshape programmes.
The combined findings portray supply‑chain leaders confronting three linked dilemmas: how to deploy AI effectively without ceding critical judgement; how to recalibrate sourcing, pricing and inventory policy under tariff and demand uncertainty; and how to meet rising sustainability expectations while managing cost pressure. RELEX positions its AI‑native platform as a tool for these challenges; the company lists customers including Circle K, Dollar Tree and Family Dollar, M&S Food, PetSmart and The Home Depot.
Industry commentary in the report underscores a pragmatic stance: AI is valued increasingly for decision support rather than full automation, and executives are prioritising investments that promise faster, more confident responses to change while recognising that talent, budgets and governance will shape what those investments deliver.
Source: Noah Wire Services
