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AI Adoption Lags in UK Manufacturing and Retail Amid Rising Supply Chain Costs

AI Adoption Lags in UK Manufacturing and Retail Amid Rising Supply Chain Costs

First seen 20 Oct 2026, 11:16 UTC • •
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ThreatCluster AI
ThreatCluster •October 21, 2026 at 10:48 UTC
  • •60% of UK manufacturers and retailers are concerned about rising supply chain costs.
  • •AI adoption in manufacturing and retail is significantly lower than the national average.
  • •Only 47% of businesses in these sectors report AI is improving operations.

As of October 2026, 60% of UK retailers, wholesalers, and manufacturers express concerns over rising supply chain costs. Despite a national AI adoption rate of 34.7%, manufacturing (26.9%) and retail (28.4%) sectors are falling behind. Experts indicate that inadequate AI adoption for forecasting is a significant issue, leading to increased procurement costs and price inflation for consumers. Approximately 47% of businesses in these sectors report AI is improving operations, compared to 59% nationally. Many businesses rely on free AI software, which lacks the necessary context for effective inventory management. The slow adoption of AI tools designed for demand forecasting is highlighted as a gap in these industries.

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Common questions

What sectors are most affected by AI adoption issues?
Manufacturing and retail sectors are most affected, with adoption rates at 26.9% and 28.4% respectively.
What is the national AI adoption rate in the UK?
The national AI adoption rate among UK businesses is 34.7% as of June 2026.
How does AI impact supply chain costs?
AI can potentially reduce supply chain costs by improving demand forecasting and inventory management.