Supply chain organizations are grappling with mounting pressures: 91% expect disruptions from new trade policies, and 85% say international instability is impacting decision-making. Yet, those that have embraced artificial intelligence (AI) are leading the way, according to a survey released by Ivalua.
“The desire for AI adoption across organizations is strong, but geopolitical instability and rising costs are pressuring organizations to shift priorities,” says Alex Saric, CMO of Ivalua. “There’s a real risk that near-term disruption becomes a long-term excuse to pause innovation. However, risk is a constant in global supply chains, and the real differentiator is how leaders respond. The most resilient organizations adapt their strategies without abandoning them, acting decisively to innovate and strategically to become stronger and more competitive.”
Key takeaways:
- 98% with fully deployed AI tools say they feel prepared for geopolitical risk, and nearly half describe themselves as very prepared.
- Preparedness drops sharply to 21% among those still implementing AI.
- Only 11% of those merely considering AI implementation feel very prepared to deal with disruption.
- And 0% for companies with no AI plans say they are prepared to deal with disruption.
- Despite widespread AI implementation, as 77% of respondents say they are currently rolling out AI tools in procurement or supplier management, only 36% view AI as a top supply chain priority today.
- 73% of U.S. company leaders agree they must invest more in technology to help identify and mitigate geopolitical risks.
- Yet, 65% of U.S. businesses say that trade policy uncertainty is causing them to pause or decrease investment.
- 59% still cite innovation as a priority, indicating that leaders aren’t abandoning transformation, but many are adjusting timelines under pressure.
- Companies with mature AI strategies handle geopolitical risks and cost pressures better than those without. While 78% of unprepared companies expect profit hits from rising costs, this decreases to only 50% for well-prepared companies that share this concern.
- A notable gap also exists between C-suite and frontline managers, as 67% of owners and 56% of C-level executives say their organizations are “very prepared,” only 17% of senior managers and 10% of junior managers agree, highlighting the need for clearer execution and communication across teams.
