Agentic AI growth exacerbating supply chain issues: Dell Technologies CEO

[LAS VEGAS] The rapid growth of agentic artificial intelligence has exacerbated supply chain issues, said Dell Technologies CEO Michael Dell at Dell Technologies World 2026.

“If it had not been for this agentic movement, we would probably see much better demand supply equilibrium in the second half of next year,” he added.

Agentic AI refers to autonomous AI agents that can plan and execute tasks without human intervention.

Building semiconductor factories takes time while demand from AI and now agentic AI has grown significantly, driving demand beyond supply, said Dell at the annual conference. Securing the supply chain to fulfill customer demand has been a top priority for the IT company, and this scale has helped in this regard.

Dell Technologies is navigating a challenging environment where inflationary pressures are going beyond components to raw materials and now logistics after the start of the Middle East conflict. To mitigate some of these challenges, customers are being engaged earlier to figure out their demand and to optimise supply to meet it.

“For our important customers, we are able to create a framework to work with them where they are assured access to the supply they need,” said the CEO.

In Asia where there are geopolitical challenges in supplying cutting edge machines to the region, Dell Technologies will continue to supply customers with what they need, while adhering to regulatory compliance obligations set by the US.

Customers in Asia will be supplied like any other customer in the US or Europe, with Dell Technologies supplying some of the largest AI build-outs in the region, said chief operating officer Jeff Clarke.

The CEO added: “One of the interesting things about this is how universal the demand is; it’s in every country we’re allowed to sell in.”

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As for fresh graduates navigating the new employment environment, he advises them to take a barbell approach, which allocates resources to two extremes of the spectrum. This means to be able to reason and make judgments, while still understanding the fundamental science and problem solve on their own.

They would also need to be resourceful and utilise the AI tools that are offered to them. This combination is “where the magic will always occur”, said Dell. The fresh graduates that Dell Technologies have hired are coming in as AI natives, with no adoption curve needed to start using AI tools.

“They don’t have to be convinced that they should be using all the tools that we’re putting in front of them; they’re hungry for the tools, and they’re pushing us and we’re learning from them,” he added.