RELEX Solutions today released the State of Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI report, showing that AI is moving from experimentation to operational decision support across supply chain planning. 67% of retail and manufacturing leaders say their confidence in using AI for supply chain decision-making has increased compared with last year. This number is much higher in for respondents in the United Kingdom (UK), Germany and France, where 71% express increased confidence. At the same time, 53% in those countries prefer AI to make recommendations while humans finalize decisions, and only 15% say they would trust AI to make fully independent supply chain decisions. Meanwhile, 42% are using or planning AI-driven inventory and supply optimization and 44% are applying AI to logistics and routing.
Looking further into survey results from European respondents, it is noted that organizations are increasing future investment in AI capabilities, with 68% planning to invest in generative and agentic AI and 55% in predictive AI over the next three to five years. These investments come as 32% of leaders cite consumer demand volatility as a top challenge over the next three years, reinforcing the need for more intelligent, responsive planning systems.
Retail: AI supports demand agility
Retailers continue to feel the downstream effects of demand uncertainty. 31% cite adapting to sudden consumer demand shifts as a major challenge, reinforcing the need for stronger demand visibility and more responsive planning processes.
To address this volatility, 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.
Manufacturing: AI stabilizes procurement and upstream risk
Manufacturers in the UK, Germany and France, face a different set of pressures. 65% say raw material procurement disruption is the most impacted area of their supply chain, significantly higher than the global average of 57%. 40% cite regulatory and compliance pressures as a growing operational concern.
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.
AI becomes a core planning capability
Across both sectors, the data points to a shift from reactive disruption response to technology-enabled planning. Organizations are concentrating investment in AI capabilities that improve forecasting accuracy, automate inventory decisions, and support faster, more confident responses to change.
“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 finds sustainability has shifted from aspiration to operational constraint. 63% of respondents across the globe say the importance of sustainability in their supply chain strategy has increased, while 34% of manufacturers cite regulations and compliance as a source of disruption. Companies are adapting to a more uncertain operating environment by strengthening AI-enabled planning capabilities rather than relying solely on buffers or reactive measures.
The full 2026 State of the Supply Chain: Volatility, Trade-Offs & the Rise of AI report is available here: https://relex.link/4u9SJjo
