Supply Chain Leaders Highlight Technology Preparedness Over AI Governance, According to RELEX Research

In a rapidly evolving marketplace, retailers, manufacturers, and distributors are increasingly relying on artificial intelligence (AI) to optimize various operational aspects, including inventory management, production levels, and strategic investments. The recent research conducted by RELEX Solutions unveils that a significant challenge lies in the realm of AI governance as nearly half (48%) of supply chain and planning leaders indicated their organizations are better equipped technologically than they are in overseeing AI functionalities.

The findings stem from the RELEX State of Supply Chain AI Practitioner Pulse report, which highlights widespread apprehensions surrounding AI readiness among industry professionals. An alarming 8% of the respondents achieved an AI readiness score of seven or higher out of ten across five critical assessment areas: data, planning processes, technology, people and change leadership, and governance. Shockingly, governance was reported as the weakest area by 58% of participants, signaling a potential risk for those operators pushing toward automation without robust oversight.

Laurence Brenig-Jones, VP of Product at RELEX, articulated the significance of accountability in AI implementations, stating that the technology team alone cannot determine the appropriate level of authority AI-recommended actions should have. For instance, when a recommendation arises to purchase additional inventory, it necessitates a shared understanding between finance, planning, and operations teams on approvals, potential cash commitments, and defined metrics for success. Decisions surrounding these parameters should unequivocally be included in any AI investment discussions from inception.

The RELEX research further accentuates that practitioners are actively seeking guidance on how to incorporate AI in their operations. Specifically, the survey results reveal that practical use cases and initial steps are a priority for 32% of respondents, with strategy frameworks and roadmaps desired by 30%, and peer benchmarks and best practices by 23%. Interestingly, while governance, risk, and security were noted by 15%, they ironically received the lowest readiness rating, hinting at a critical need for the integration of governance into AI planning initiatives alongside the development of applicable use cases and ROI calculations.

Comparative insights between retail and manufacturing sectors expose a gap in AI readiness. Retail players fared better, averaging 5.3 out of 10 in capability readiness, whereas the manufacturing and Consumer Packaged Goods (CPG) sectors lagged with an average of just 4.5. Planning process maturity and technological infrastructure emerged as the most significant areas for improvement, while governance consistently ranked as the undesirable weak point across both sectors.

Rohit Tripathi, VP of Industry Strategy, CPG and Manufacturing at RELEX, emphasized the potential for manufacturing entities to currently derive tangible benefits from AI using established machine learning-based forecasting and optimized algorithms focused on inventory and production planning. However, the pressing question remains whether AI can effectively enhance decision-making during unforeseen events such as delivery delays, demand fluctuations, or production constraints.

To maximize the potential of AI, it is essential for leaders to identify concrete business problems that could significantly improve decision-making processes. Involving cross-functional teams from purchasing, planning, and production is crucial as these groups will execute the resultant decisions. Adequate training and support for these teams become imperative to ensure they are proficient in utilizing and critically evaluating AI recommendations. Ultimately, the rationale for increasing AI integration should be firmly grounded in demonstrable improvements that translate into practical daily operations.

With the Practitioner Pulse building on insights from RELEX's annual State of Supply Chain report, which presented the results of a survey with 514 supply chain leaders, it was noted that 67% of respondents feel more confident in leveraging AI for supply chain decision-making. Interestingly, 54% expressed a preference for AI-driven recommendations with human oversight in the final decisions.

The RELEX State of Supply Chain AI Practitioner Pulse utilized intake surveys completed by participants of the 2026 RELEX AI Masterclass Series, consisting of input from 108 respondents across multiple industries. The self-assessment results indicate a potential misalignment in how organizations gauge their AI preparedness versus the pressing need for structured governance practices.

About RELEX Solutions

RELEX Solutions specializes in providing a decision orchestration platform that seamlessly integrates strategic and operational decisions across retail and manufacturing setups. With over 600 customer implementations, the platform is built on deep industry insights to facilitate better decision-making in areas like demand forecasting, inventory, merchandising, pricing, and supply chain processes. Prominent brands such as ADUSA, Carhartt, and The Home Depot are harnessing RELEX’s platform to enhance efficiency and adaptability in their operations.

For a deeper dive into the Practitioner Pulse findings and to understand more about RELEX’s offerings, visit relexsolutions.com/customers.