Supply chains stretch across the globe, but are constantly brittle, subject to disruptions of all kinds. Economic issues, weather events, energy shortages, tariffs, cyberattacks, and wars lurk behind every shipment. Can AI help smooth the movement of goods and services in such a volatile world?

Already, there is a notable shift away from global to local production, a new survey of 1,800 global executives from Prologis and The Harris Poll finds. A majority, 58%,
forecast more localized supply chains by 2030, with only 31% expecting continued globalization.

"This represents a fundamental shift from cost-optimization to risk-mitigation as
the primary business strategy," state the report’s authors. In a post-globalization era, "proximity and control outweigh traditional cost advantages. Strategic planning must account for higher operational costs offset by reduced risk exposure and improved operational reliability, marking the end of the globalization era in supply chain design."

More than three-quarters of companies in the survey have already implemented or are actively building regional networks, especially around consumption centers, the report adds. Energy reliability (40%) and labor costs (36%) are the major drivers of where companies choose to locate operations.

Such a dispersal may help mitigate the risks seen in fragile global networks, but nonetheless, risks will never go away.

Top Risks for Supply Chains in 2026

Executives are turning to artificial intelligence as the mechanism they hope will reduce some of these risks, and enable more localized supply chains responsive, consistent, and online. Seven in 10 executives state they are well along with applying AI to supply chains.

Where is AI being applied? Quality control and inspective and risk identification are leading areas, the survey shows.

Notably, it will be a top capital investment for 75% of companies in 2026. Leaders identified in the survey report seeing 77% return on their AI investments within 12 months. A majority of these leaders, up to 63%, expect AI to be making decisions across all major functions of their supply chains within the next five years.

Top 5 Supply Chain Investment Priorities for 2026

"The supply-chain industry has crossed the AI adoption threshold, positioning it at
the forefront of AI commercialization," the report’s authors state. “Organizations still in early-stage AI implementation risk competitive obsolescence as AI-driven decision-making becomes the operational standard.”