RELEX Solutions has released its State of Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI report, finding that artificial intelligence is moving from experimentation to operational decision support across supply chain planning.
The report, based on a January 2026 survey of 514 retail, manufacturing, wholesale and supply chain leaders, finds that 67 percent of retail and manufacturing leaders say their confidence in using AI for supply chain decision-making has increased compared with last year. At the same time, 54p ercent prefer AI to make recommendations while humans finalize decisions, and only 10 percent would trust AI to make fully independent supply chain decisions.
Nearly half – 47 percent – are using or planning AI-driven inventory and supply optimization, and 41 percent are applying AI to logistics and routing. Looking ahead, 71 percent of organizations plan to invest in generative and agentic AI and 60 percent in predictive AI over the next three to five years. Consumer demand volatility is cited as a top challenge by 44 percent of leaders over the next three years.
Retail and Manufacturing Findings
For retailers, 30 percent cite adapting to sudden consumer demand shifts as a major challenge, driving increased investment in AI-driven forecasting and inventory optimization tools.
Manufacturers face different pressures. More than half – 57 percent – say raw material procurement disruption is the most impacted area of their supply chain, while 34 percent cite regulatory and compliance pressures as a growing concern. AI is being applied to connect demand signals with procurement and production decisions to improve forecast accuracy and mitigate supplier risk.
The report also finds sustainability has shifted from aspiration to operational constraint. Sixty-three percent say the importance of sustainability in their supply chain strategy has increased.
“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 full report is available at relex.link/4u9SJjo. RELEX Solutions provides a unified, AI-native platform for retail and supply chain planning. Its customers include Circle K, Dollar Tree and Family Dollar, M&S Food, PetSmart and The Home Depot.
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