Artificial intelligence is moving from experimentation to operational decision-support across supply chain planning, with 67% of retail and manufacturing leaders reporting their confidence in using AI for supply chain decision-making has increased compared with last year.

The RELEX Solutions “State of Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI” report, shows that at the same time, 54% of respondents prefer AI to make recommendations while humans finalize decisions, and only 10% say they would trust AI to make fully independent supply chain decisions. Meanwhile, 47% are using or planning AI-driven inventory and supply optimization, and 41% are applying AI to logistics and routing.

The report is based on a January 2026 survey of 514 retail, manufacturing, wholesale and supply chain leaders conducted by Researchscape.

RELEX, which operates an AI-driven supply chain management technology platform, says organizations are increasing future investment in AI capabilities, with 71% planning to invest in generative and agentic AI, and 60% in predictive AI over the next three to five years. These investments come as 44% of leaders cite consumer demand volatility as a top challenge over the next three years, reinforcing the need for more intelligent, responsive planning systems, RELEX says.

The report also found that retail leaders are increasingly turning to AI-driven forecasting, inventory optimization, and decision-support tools that allow them to respond quickly to changes in consumer behavior while protecting margins and availability. Further, AI is increasingly being applied to connect demand signals with procurement and production decisions, helping manufacturers improve forecast accuracy, mitigate supplier risk, and maintain flexibility in the face of ongoing material, regulatory and geopolitical volatility.