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Agentic AI in Supply Chain: The 2026 Reality

Chris VanIttersum
Chris VanIttersum
February 2026 | 7 min read
Agentic AI transforming supply chain operations

According to BCG, agentic AI systems—autonomous agents that plan, execute, and adapt without human intervention—accounted for 17% of total AI value generated in 2025 and are projected to reach 29% by 2028. In supply chain operations specifically, ICRON reported that nearly 67% of companies deploying agentic AI in supply chain and inventory management saw a significant revenue increase in 2025.

Those numbers mark a departure from the chatbot era. Agentic AI doesn't answer questions—it takes action. And for supply chain operations built on decades of manual coordination, the implications are substantial.

What "Agentic" Actually Means

The term gets used loosely, so precision matters. Agentic AI differs from traditional automation in four ways. It pursues goals rather than following scripts—give it an objective like "minimize stockouts while reducing carrying costs" and it determines how to get there. It adapts when conditions change, rerouting around supplier delays or demand spikes without waiting for human input. It executes decisions within defined boundaries, placing orders and adjusting schedules autonomously. And it improves over time, learning from outcomes to refine future decisions.

Traditional automation handles the predictable. Agentic AI handles the variable—which describes most of what supply chain professionals spend their time on.

Where Agents Are Already Working

The most mature deployments cluster around six use cases.

Order processing is the most common starting point. Agents handle inbound orders end-to-end: parsing emails and calls, validating against inventory and customer profiles, checking credit limits, and submitting to fulfillment. IBM research found that 62% of supply chain leaders report AI agents embedded in operational workflows accelerate decision-making, recommendations, and communications.

Inventory optimization is where the financial case is strongest. McKinsey found that AI-driven demand forecasting can reduce inventory levels by 20 to 30 percent while maintaining or improving fill rates. Samsung operates this at scale, managing more than 85,000 SKUs across 200-plus distribution centers with AI that adjusts stock levels three times daily based on real-time sales data, reducing excess inventory by 20% while maintaining 98% product availability.

20–30%

Reduction in inventory levels achievable through AI-driven demand forecasting, according to McKinsey's research on distribution operations.

Customer communication has moved beyond basic chatbots. Current-generation agents access real-time inventory and pricing, process returns within defined limits, schedule deliveries, and handle product substitution conversations. They escalate to humans with full context when situations exceed their scope—rather than forcing the customer to repeat themselves.

Procurement is a newer but growing application. According to Dataiku's analysis, one transportation company deployed agents in its buying process where buyers initiate agentic workflows that request quotes from approved suppliers and rank responses autonomously. Deloitte's 2025 Global CPO Survey found that 67.68% of procurement executives cite enhanced decision-making as the greatest value from generative AI.

Exception handling—damaged goods, incorrect shipments, payment disputes—is where agents prove their adaptability. Standard problems get resolved autonomously; genuinely complex cases get escalated with full documentation of what the agent already tried.

Route and delivery optimization rounds out the current deployment landscape. Agents dynamically adjust delivery routes based on real-time traffic, weather, customer availability, and order priority.

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The Architecture Requirements

Understanding what agentic AI demands helps cut through vendor hype. Four requirements are non-negotiable.

Real-time data access. Agents need current inventory counts, live order status, and up-to-date customer records to make good decisions. Batch updates from overnight syncs don't work when an agent is processing orders every few seconds.

Action authority. Agents must execute, not just recommend. That means API connections to ERP, CRM, warehouse management, and logistics systems—plus permission structures that define what each agent can and cannot do.

Coordination between agents. An order processing agent and an inventory agent working on the same transaction need to avoid conflicts. Microsoft's February 2026 launch of agentic AI tools for Dynamics 365 supply chain management addressed this with orchestration layers that coordinate across procurement, inventory, and fulfillment agents.

Human oversight. Clear escalation paths and audit trails for when humans need to intervene. Gartner's June 2025 prediction that over 40% of agentic AI projects would be canceled by end of 2027—citing escalating costs, unclear business value, or inadequate risk controls—underscores that governance isn't optional.

The Honest Concerns

Adoption hesitation is rational. Data quality is the most common blocker—agents making decisions on dirty data produce bad decisions at machine speed. The answer isn't to wait for perfect data, but to start where data is cleanest and use agents to identify quality issues elsewhere.

Cost is increasingly manageable. Stanford's 2025 AI Index showed inference costs dropping 280-fold between November 2022 and October 2024. What required six-figure infrastructure budgets two years ago now runs on standard cloud subscriptions.

Customer acceptance is less of a concern than expected. ABI Research found 94% of companies plan to use AI for customer-facing decision-making. Customers tend to prefer faster, 24/7 service—provided there's a clear path to a human when needed.

Getting Started

Successful implementations follow a consistent pattern: audit current processes to identify high-volume, rule-based decisions. Pick one—order processing and standard customer inquiries are common starting points. Deploy with conservative boundaries and full human review. Expand autonomy as accuracy is demonstrated.

The progression from pilot to production typically takes 4 to 8 weeks for a single use case. The companies seeing the strongest results are those that start narrow, measure ruthlessly, and expand based on data rather than enthusiasm.

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