UK regulatory pressures drive faster supply chain AI adoption

Regulatory complexity is accelerating the use of artificial intelligence in UK supply chain decisions, according to IDC research commissioned by Kinaxis. More than one quarter of UK respondents identify international regulatory requirements as the leading reason their organisations are increasing AI adoption.

The issue ranks second overall in the UK, behind inflation. The proportion is substantially above the 16% global average and more than double Germany’s 10%. The difference may reflect the additional trading and compliance requirements British companies have faced since the UK left the European Union in 2020.

The wider IDC survey, covering more than 2,000 supply chain leaders across nine markets, found that AI capabilities are now close to universal. Only 2% of organisations reported having none. However, just 12% consider themselves AI leaders, and the same share say governance for AI-driven decisions is fully embedded.

Trust is the principal barrier to faster adoption worldwide, cited by 52% of respondents. Justin King, Field CTO at Kinaxis, said the priority has shifted from deciding whether to adopt AI to ensuring that its recommendations are trusted, measurable and governed. He cited Maestro as a platform designed to provide explainable and auditable recommendations before action.

UK companies remain cautious about their maturity. Some 23% describe their AI capability as early-stage or uncertain, compared with 16% in both the US and India. The findings suggest that British businesses are increasing investment in AI to manage regulatory demands while still building the controls required for dependable use.