New MHI and Deloitte Report Finds AI is Biggest Disruptor of Supply Chains Over the Next Decade

71% say AI is disrupting supply chains with 24% saying the disruption will be transformational

ATLANTA--(BUSINESS WIRE)--A new report released today by MHI and Deloitte finds that artificial intelligence (AI) is viewed as the most disruptive supply chain technology for the next decade.

The 2026 MHI Annual Industry Report, “Rewiring the Future: A Supply Chain Playbook for Innovation,” finds that the emergence of AI is causing supply chain leaders to reassess every aspect of their operations, investing not only in advanced digital technologies such as AI, robotics, and real-time analytics but also in their workforce.

The publication, based on a survey of supply chain leaders, reports that a quarter of respondents (24%) categorize AI as transformational and nearly half (48%) consider its disruptive impact to be significant or greater—up 25 percentage points since 2025. Robotics & automation follow AI as the second most disruptive technology, with 39% rating its impact as significant or greater, up 16 percentage points.

By focusing on the intersection of business and technology, the report goes beyond tech trends to explore how operational assessments, smart automation, data-driven decision making, and new approaches to talent development can be woven together to “rewire” supply chain performance.

Innovation Spending Plans

According to the report, 56% of organizations expect to increase their spending on supply chain innovation with 52% saying they are planning to spend over $1 million. Seventeen percent plan to spend over $10 million. This spending reflects a more disciplined investment approach as companies are stepping back to confirm what problem they’re trying to solve, selecting management, and scenario planning to better justify, control, and scale technology investments.

Today’s supply chain organizations operate in an environment defined by relentless disruption, volatility, and rapidly shifting market demands. Geopolitical uncertainty, labor shortages, accelerating technology cycles, and elevated customer expectations have converged to make predictability a thing of the past. Strategic priorities now include strengthening risk management, enhancing transparency, enabling rapid fulfillment, and embedding sustainability throughout the supply chain.

“Supply chains can no longer be optimized at the edges,” said John Paxton, CEO of MHI. “They must be rewired end‑to‑end. Only connected, intelligent, and automated real-time networks will withstand the volatility and meet the future customer demands for speed and efficiency.”

AI is the Future of Supply Chain and the Future is Now

AI is already adding value in a wide range of supply chain processes, from inventory management to demand planning to logistics. Moving forward, supply chain organizations will increasingly leverage AI to enhance all aspects of their operations. Agentic AI specifically has the potential to quickly eliminate high volume repetitive tasks, proactively address disruptions, enhance forecasting precision, and improve overall visibility within the supply chain.

While leaders are excited about AI’s potential, the report finds that they are getting stuck on where to start and what it takes to scale. The barriers are real and practical—unclear use cases and automation cost, paired with limited understanding; difficulty building business cases; talent shortages; and budget constraints.

“Those who connect operational excellence, AI-driven orchestration, and workforce readiness into a single playbook will not just withstand disruption; they will convert it into sustained performance and growth,” said Wanda Johnson, Supply Chain Technology Fellow, Deloitte Consulting LLP.

The integration of generative AI, agentic AI, physical AI, and edge AI into operations is ushering in a future where fulfillment and supply chain activities become software-defined, perpetually adaptive, and backed by intelligent orchestration engines. This transformation does not just improve what already exists, it fundamentally changes how challenges are solved, how capital is invested, and how workforce capacity is harnessed.

Uncertainty Tops the List of Key Trends Impacting Supply Chains in 2026

According to this year’s respondents, these are the top trends impacting supply chains.

1. Economic Uncertainty, Inflation and Geopolitical Risks
2. Workforce, Talent Shortage and Changing Worker Skillsets
3. Pace of Technology Adoption, Digitization and the Need for Real-Time Data
4. Supply Chain Visibility, Agility and Resiliency
5. Cybersecurity and Data Security
6. Rising Cost of Capital
7. Inventory Challenges
8. E-Commerce Growth
9. Customer-Centricity
10. Reshoring

“The biggest threat we face isn’t disruption—it’s the failure to innovate and the risk of running tomorrow’s operations on yesterday’s equipment and technology,” said John Paxton, CEO, MHI.

The report also provides real-world case studies of digital supply chain technologies and recommendations for leaders to develop strategies to implement these innovations.

Download the complete report here.

About MHI

MHI is an international trade association that has represented the material handling, logistics, and supply chain industry since 1945. MHI’s over 1,100 members include material handling and logistics equipment and systems manufacturers, integrators, consultants, publishers, and third-party logistics providers. MHI offers education, networking, and solution sourcing for their members, their members’ customers, and the industry through programming and events. The association sponsors the ProMat and MODEX exhibitions to showcase the products and services of its member companies and to educate manufacturing and supply chain professionals. The Warehousing Education and Research Council (WERC) is a division of MHI and provides education and research to the warehousing, distribution, and logistics community

MODEX 2026 is being held at Atlanta’s Georgia World Congress Center from April 13-16.

About Deloitte

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.