Technology and AI Investment Now "Non-Discretionary",

(Text Copyright Logistics UK , reproduced with kind permission)



Technology and AI investment is surging across the UK logistics sector as firms prepare for an increasingly automated future, according to new research by business group Logistics UK and HSBC UK.

The exclusive research reveals that almost eight out of ten businesses from the industry are spending more on technology compared to last year and seven out of ten expect further expenditure increases next year. Overall investment levels for more than nine out of ten businesses across the supply chain are also expected to be the same or higher next year. However, this positive outlook is tempered by growing concerns about taxation and regulation. All of this is revealed in Logistics Investment Insight Report 2026 published by Logistics UK and HSBC UK, in conjunction with leading independent research firm Analytiqa.

Drawing on insights from more than 100 senior executives within logistics companies in the UK, the report reveals a sector in which technology investment is considered "non-discretionary" as businesses respond to the need to increase efficiency while managing growing cyber threats. More than 77% of respondents reported a greater spend on technology in 2026 compared to last year, with cybersecurity, AI and software modernisation now the three biggest technology priorities. Investment in the area is expected to continue, with 70% of respondents expecting further increases next year.

"Technology adoption in freight and logistics has long been a means of gaining competitive advantage," explains Logistics UK's President Phil Roe, "and now technology investment is a means to provide operational resilience as well. Our research reflects that technology priorities are heavily skewed towards modernising and protecting core operations, with AI and cyber security now firmly mainstream."

When asked which technology applications they were currently prioritising, more than one in five respondents cited cyber security (20.9%), AI (20.5%) and software upgrades (20.5%). According to the report, this signals an environment where operational disruption risk is rising owing to the threat of cyber-attacks, necessitating increased resilience, and firms believe competitive advantage is increasingly driven by data, automation and decision speed.

The analysis also reveals a broad consensus among respondents for the need for improved transport infrastructure across road, rail, ports and airports. "Logistics is only as efficient as the network it runs on," continues Roe, "and businesses are urging the government to invest in the national infrastructure that will allow them to increase their efficiency and help drive growth across the whole economy. This includes creating the environment that will facilitate decarbonisation across logistics: the report reiterates what our members continue to tell us, namely decarbonisation is now more of an infrastructure challenge than a vehicle challenge. The sector is prepared to invest in cleaner electric fleets but can only do so when there is a well-developed charging infrastructure that doesn't restrict operations and compromise commercial viability."

Meanwhile, tax rises are seen as the biggest threat to logistics investment, according to the report, with more than half of respondents saying tax policy is making them less likely to invest with respondents highlighting concerns around operating costs, fuel duty and employment taxes.

The report posits that investment is the lifeblood of both innovation and growth but notes that confidence, rather than capital availability, is the main barrier to investment. According to the report, most respondents (70.4%) say securing financial support is straightforward or easy, yet 70.5% have delayed or deferred planned projects during the past 18 months. Uncertainty over business growth (19.8%) and government policy (16.3%) are the key reasons cited why investment plans were shelved and only 2% said it was very difficult to secure finance and almost half (45%) believed their finance provider could add strategic value.

Robert Brand, Sector Head, Business Services at HSBC UK said, "Logistics businesses are making technology investment a strategic priority, with AI, cyber security and software modernisation now central to how firms build resilience and drive productivity. Investment appetite across the sector remains strong, even against a backdrop of global volatility. The sector's evolution is helping to modernise logistics and support growth across the UK economy."

Logistics businesses are making technology investment a strategic priority, with AI, cybersecurity and software modernisation now central to how firms build resilience and drive productivity. The sector's willingness to invest is clear, but confidence is being held back by uncertainty around taxation, regulation and future policy. With the right policy environment and infrastructure in place, logistics can continue to modernise, decarbonise and play a vital role in supporting growth across the whole UK economy."

Logistics Investment Insight Report 2026 is the latest in a series of Insight Reports produced as part of Logistics UK's Executive Membership programme, designed for senior leaders in the logistics sector. To download the report summary (or full report as an Executive Member) click here:   Logistics Investment Insight Report 2026. For more information on the Executive Membership programme, please visit https://logistics.org.uk/executivemembership/

Logistics UK is one of the UK's biggest business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, water and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, please visit logistics.org.uk