Parcelhero

Putting the AI into Supply ChAIns: Industry report

Parcelhero’s analysis of the latest ONS data reveals that AI adoption among UK transport & storage sector firms leapt from 16.1% to 27.1% in the first quarter of 2026 – an 11 percentage-point surge in just three months.

With over 20% of remaining firms planning adoption within Q2 of 2026, and Deloitte reporting that 41% of global retailers will deploy AI for supply chain visibility within a year, the question is no longer whether artificial intelligence will transform logistics. It already has. This report asks what that transformation looks like across every node of the supply chain – and where it is heading next.

1. The intelligent backbone:

AI has moved from boardroom experiment to operational infrastructure. Around 40% of supply chain organisations are now investing in generative AI, with early adopters gaining measurable advantages across the four building blocks of supply chain operations: Plan, Source, Make and Move.

2. Routing reinvented:

AI-driven route optimisation is delivering a 10% saving in logistics costs and a 15% improvement in on-time delivery rates. Algorithms now reorder sequences of over 100 stops in seconds: processing live traffic, weather and customer preference data simultaneously.

3. The last-mile revolution:

The final leg of delivery has historically accounted for over 53% of total shipping costs. AI is reshaping its economics: intelligent systems can now forecast shipment volumes for specific facilities with up to 95% accuracy, pre-positioning stock before demand is even formally registered.

4. The smart warehouse:

McKinsey reports 56% of businesses have integrated AI into at least one operational function. In warehousing, autonomous mobile robots navigate dynamically rather than following fixed routes, while predictive maintenance flags equipment failures before they cause costly downtime.

5. AI sets sail:

The maritime AI market, valued at £4.13 billion in 2024, is projected to grow at a compound annual rate of 23% over the next five years. In 2025 alone, 420 organisations adopted maritime AI, up from 276 the previous year. The world’s first fully autonomous commercial container ship, the Yara Birkeland, has already completed over 250 voyages – replacing 40,000 diesel truck journeys annually.

6. Air freight takes off:

A sector once run on spreadsheets and reactive problem-solving is now powered by real-time data and machine learning.AI is compressing tasks that once required specialist knowledge – rate comparisons, export classifications, ETA predictions – into automated workflows that take minutes, not days.

7. The readiness gap – the real challenge:

Only 16% of logistics and supply chain organisations say they are unlikely to adopt AI within five years. Yet many are held back not by the technology itself, but by legacy systems, batch-processed data and manual workflows incompatible with the real-time data AI requires. The firms that will lead their industries by 2030 are those investing in data quality, digital infrastructure and workforce upskilling today.

Not everything about this AI revolution is straightforward, however. Workforce displacement fears remain, even though Parcelhero’s own analysis found that over 31% of AI-adopting transportation and storage firms reported no change in headcount, and the number reporting definite job cuts was too small to register statistically. Ethical concerns around transparency, data privacy and algorithmic bias demand equal attention as AI takes on increasingly consequential decisions across supplier selection, pricing and logistics planning. The supply chains that will define the next decade are those treating AI not as an efficiency tool, but as a strategic transformation.

The question is no longer whether to put the AI into supply chains. It is how quickly – and how well.

Read the full report