A Relex Solutions study reveals only 10% of retail and manufacturing leaders trust AI for fully autonomous supply chain decisions. Instead, 54% prefer AI-generated recommendations with human final approval. Confidence in AI use has risen (67%), with 47% adopting or planning AI-driven inventory optimization and 41% applying AI to logistics routing. Key drivers include consumer demand volatility (44%) and raw material procurement disruption (57% among manufacturers). Barriers include data quality (48%) and legacy system integration (42%). Among adopters, 62% saw improved forecast accuracy and 58% reduced inventory costs.
According to www.dcvelocity.com, only 10% of retail and manufacturing leaders say they would trust AI to make fully independent supply chain decisions — a finding from Relex Solutions’ “State of Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI” report, based on a January 2026 survey of 514 retail, manufacturing, wholesale, and supply chain leaders conducted by Researchscape.
Human-in-the-Loop Dominates Today
Rather than delegating authority outright, 54% of respondents prefer AI to generate recommendations while humans retain final decision-making authority. This reflects a widespread “assisted intelligence” model: 70% of surveyed organizations are currently in this phase, where AI augments but does not replace human judgment. Just 15% are early adopters using AI for autonomous decisions in limited, controlled areas; the remaining 15% remain in experimental or planning stages.
Growing Confidence Amid Strategic Investment
Despite caution around full autonomy, confidence is rising: 67% report increased confidence in using AI for supply chain decision-making compared with last year. Adoption is accelerating across functional areas: 47% are using or planning AI-driven inventory and supply optimization, and 41% are applying AI to logistics and routing.
Investment plans signal long-term commitment: 71% plan to invest in generative and agentic AI, and 60% in predictive AI over the next three to five years. The chief driver? 44% cite consumer demand volatility as their top challenge over the next three years — a pressure point especially acute for retailers, 30% of whom identify adapting to sudden demand shifts as a major operational hurdle.
Industry-Specific Drivers
Manufacturers face distinct pressures: 57% identify raw material procurement disruption as the most impacted area of their supply chain, while 34% point to regulatory and compliance pressures as a growing concern. These divergent pain points underscore that AI use cases are increasingly tailored — not one-size-fits-all.
“AI is becoming part of everyday supply chain decision-making. 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.” — Madhav Durbha, group vice president of manufacturing industry strategy at Relex Solutions
Barriers and Measured Returns
Adoption hurdles remain significant. 48% cite data quality issues; 42% report integration challenges with legacy systems; 39% note a lack of skilled personnel; and 35% express concerns about AI ethics and transparency.
Yet ROI is demonstrable among implementers: 62% reported measurable improvements in forecast accuracy; 58% saw reduced inventory costs; and 52% experienced faster response times to supply chain disruptions.
The report concludes that while full AI autonomy remains distant for most, the trajectory points toward gradual, context-specific expansion of AI’s decision-making scope — contingent on proven reliability in controlled environments and sustained trust-building.
This article was AI-assisted and reviewed by the SCI.AI editorial team before publication.
Source: dcvelocity.com
