It can draft a letter, plan your holiday and diagnose that persistent dull ache in your elbow, but a new report found AI is now transforming supply chains at a pace much faster than anyone predicted.
The whitepaper, Putting the AI into Supply ChAIns, said there was a seismic shift underway in UK logistics, with the groundbreaking technology reshaping every part of the supply chain – and at speed.
The report found that the proportion of firms using AI jumped from 16.1% to 27.1% in the first three months of 2026 alone.
In logistics, AI-driven route optimisation is already delivering a 10% reduction in costs and a 15% improvement in on-time delivery rates.
Report author David Jinks said algorithms could now reorder a sequence of over 100 delivery stops in seconds; processing live traffic, weather and customer preference data simultaneously, a capability that would have seemed implausible even five years ago.
He said the last mile was being fundamentally reimagined, with AI systems now able to forecast shipment volumes for specific facilities with up to 95% accuracy, allowing logistics networks to pre-position stock before demand is even formally registered.
AI use across last-mile delivery has grown by 39% in the past year alone.
“The numbers uncovered in our latest industry report tell a remarkable story,” Jinks said.
“Firms are no longer piloting or exploring AI – they are embedding it. Around 40% of supply chain organisations globally are now investing in generative AI, and Deloitte’s 2026 Retail Industry Global Outlook found that 41% of retailers plan to deploy AI within twelve months, specifically to improve supply chain visibility.
“The early movers are gaining measurable advantages that will make it very hard for slower adopters to close the gap.”
Jinks added that workforce fears so far appear unfounded; 31% of AI-adopting transport and storage firms reported no change in headcount, while the number reporting definite job cuts was too small to register statistically.
“The more pressing challenge is reskilling rather than redundancy,” he added.
“The question is no longer whether to put the AI into supply chains. It has already arrived.”
The report follows recent research by Microlise, which found more than 80% of transport and logistics managers now use AI to support fleet and supply chain operations, while 88% believe their organisations are well equipped to maximise the technology’s potential.
