Report says AI is spreading in supply chains but results vary

In short: Companies are adding AI to supply chains, but many are finding that the biggest benefits still depend on good data and well-run processes.

What's going on

Supply chains, the networks that move goods from raw materials to your doorstep, are under pressure from shocks like wars, pandemics, and trade barriers. At the same time, rules on sustainability, labor practices, and product origin are increasing, especially in the EU and the US.

A Financial Times report says AI is being used more often to help manage these pressures, but progress is uneven. Some tools marketed as “AI agents” are not truly new, and are often built on older software that follows set rules, like a very strict checklist. ManMohan Sodhi, a supply chain professor at Bayes Business School, says many “agents” are basically existing programs with updated branding.

Where newer AI can help is speed and scale. With better data systems and faster computing, companies can update plans more often and react to events in near real time. Large language models, the type of AI behind chatbots (they predict the next words, like autocomplete on steroids), can also turn messy information like emails, contracts, and shipment updates into readable summaries that teams can act on.

What to watch

Many firms still struggle with the basics, such as inconsistent product labels and scattered data systems. A Gartner survey cited in the report found only 17% of supply chain leaders were redesigning their processes in a major way, which is often needed before advanced AI can help. Watch for more AI use in compliance work, since companies paid $4.3bn in customs penalties and regulatory fines worldwide in 2025, and reporting requirements are set to grow in 2026.

Source: Financial Times